Swine Flu Homework!

The swine flu could be *good* for the economy because everyone is going to run out and buy cold medication and hand sanitizer - do you agree?

First of all,Swine flu is a serius desease that may affect in people's life and it causes lower living health and standard as well.This is a one kind of flu and causes lower health and demotivate workers to work.Therefore,it leads to a decrease in productivity and may reduce the achievement of the consumers expenditure.Therefore,because of the swine flu, aggregate demand will shift to the left which may cause unemployment in the long run.As,swine flu is flowing over people's environment,people will go outdoors less will buy less.This may leads to a decrease in the AS.So Swine flu is the big problem to the economy of the country and causes many problems.

For example in Mexico,there is the biggest number of people that have swine flu.It may affect on Mexico's international trade.Other countries will buy less Mexico's exports,not only pork but also other kinds of meet,because they afraid of the illness will appear on their country.So this will make balance of payment deficit even worse.Therefore,at the average point,the swine flu really harms country's economy.

But it depends also on the which country.The swine flu will have less chances to be appeared in the countries that have religions against pork meet like Muslims.For example,Kazakhstan or Arabic countries will have less chances to have swine flu,therefore,other countries will expect that there's no swine flu in Muslim countries.This will make exports of meet in Muslims countries to increase a lot.And this may cure the balance of payment deficit,and boost AD and AS in the long run.

People may go out and buy a lot of anti cold medicines or hand sanitizer and this will increase demand for it,but the problem will be their spending on the medicines to increase government's revenue is much less than the cost to teh social.This deasease is infected,therefore,it's a negative externality as it also cost to the third party.Therefore,the Government will have to spend a lot on the NHS and it will be much more expensive than people's spend on cold medication and hand sanitizer.And as people will have more swine flu,it will reduce pructive capacity of a country in the luong run because of a decrease in productive capacity!

Therefore,I don't agree that swine flu will benefit the economy.