Panic buying (alternatively hyphenated as panic-buying; also known as panic purchasing) occurs when consumers buy unusually large amounts of a product in anticipation of, or after, a disaster or perceived disaster, or in anticipation of a large price increase or shortage. Panic buying is widely observed during the COVID-19 pandemic.
Panic buying is influenced by (1) individuals' perception of the threat of a health crisis and scarcity of products; (2) fear of the unknown, which is caused by negative emotions and uncertainty; (3) coping behaviour, which views panic buying as a venue to relieve anxiety and regain control over the crisis; and (4) social psychological factors, which account for the influence of the social network of an individual.
Panic buying is a type of herd behavior.It is of interest in consumer behavior theory, the broad field of economic study dealing with explanations for "collective action such as fads and fashions, stock market movements, runs on nondurable goods, buying sprees, hoarding, and banking panics."
Panic buying can lead to genuine shortages regardless of whether the risk of a shortage is real or perceived; the latter scenario is an example of self-fulfilling prophecy.
Panic buying occurred before, during, or following these incidents:
Toilet paper is a tissue paper product primarily used to clean the anus and surrounding area of feces after defecation and, in females, to clean the vulva and perineum of urine after urination or other bodily fluid releases. It also acts as a layer of protection for the hands during these processes. It is usually supplied as a long strip of perforated paper wrapped around a paperboard core for storage in a dispenser near a toilet. Most modern toilet paper in the developed world is designed to decompose in septic tanks, whereas some other bathroom and facial tissues are not. Toilet paper comes in various numbers of plies, from one- to six-ply, with more back-to-back plies providing greater strength and absorbency.
A grocery store or grocer's shop is a retail shop that primarily sells food, either fresh or preserved. Large grocery stores stock significant amounts of non-food products, such as clothing and household items, blurring the line between grocery stores and supermarkets.
Rationing is the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, and in western civilization people experience some of them in daily life without realizing it.
Consumer goods in the Soviet Union were usually produced by a two-category industry. Group A was "heavy industry", which included all goods that serve as an input required for the production of some other, final good. Group B was "consumer goods", final goods used for consumption, which included food, clothing and shoes, housing, and such heavy-industry products as appliances and fuels that are used by individual consumers. From the early days of the Stalin era, Group A received top priority in economic planning and allocation so as to industrialize the Soviet Union from its previous agricultural economy.
Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods even during shortages, and to slow inflation, or, alternatively, to ensure a minimum income for providers of certain goods or to try to achieve a living wage. There are two primary forms of price control, a price ceiling, the maximum price that can be charged, and a price floor, the minimum price that can be charged. A well-known example of a price ceiling is rent control, which limits the increases in rent. A widely used price floor is minimum wage. Historically, price controls have often been imposed as part of a larger incomes policy package also employing wage controls and other regulatory elements.
Rationing was introduced temporarily by the British government several times during the 20th century, during and immediately after a war.
In economics, a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market. It is the opposite of an excess supply (surplus).
A market run or run on the market occurs when consumers increase purchasing of a particular product because they fear a shortage. As a market run progresses, it generates its own momentum: as more people demand the item, the supply line becomes unable to keep up. This causes a local shortage, which in turn encourages further hoarding.
When elected in 2013, Nicolás Maduro continued the majority of existing economic policies of his predecessor Hugo Chávez. When entering the presidency, President Maduro's Venezuela faced a high inflation rate and large shortages of goods that was left over from the previous policies of President Chávez. These economic difficulties that Venezuela was facing were one of the main reasons of the 2014–15 Venezuelan protests. President Maduro has blamed capitalism for speculation that is driving high rates of inflation and creating widespread shortages of staples, and often said he was fighting an "economic war", calling newly enacted economic measures "economic offensives" against political opponents he and loyalists state are behind an international economic conspiracy. However, President Maduro has been criticized for only concentrating on public opinion instead of tending to the practical issues economists have warned the Venezuelan government about or creating any ideas to improve the economic situation in Venezuela such as the "economic war".
Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one person's allotted portion of the resources being distributed on a particular day or at a particular time.
Dakazo refers to a set of actions taken by the Venezuelan government forcing consumer electronic retail stores, with Daka being the most prominent, to sell products at much lower prices on 8 November 2013, weeks before municipal elections. The forced Daka price changes helped Venezuela's ruling party, PSUV, win in some of the municipal elections, though the massive sale of goods caused further shortages in the months following the initiative.
Shortages in Venezuela of regulated food staples and basic necessities have been widespread following the enactment of price controls and other policies under the government of Hugo Chávez and exacerbated by the policy of withholding United States dollars from importers under the government of Nicolás Maduro. The severity of the shortages has led to the largest refugee crisis ever recorded in the Americas.
An N95 mask or N95 respirator is a particulate-filtering facepiece respirator that meets the U.S. National Institute for Occupational Safety and Health (NIOSH) N95 classification of air filtration, meaning that it filters at least 95% of airborne particles. This standard does not require that the respirator be resistant to oil; another standard, P95, adds that requirement. The N95 type is the most common particulate-filtering facepiece respirator. It is an example of a mechanical filter respirator, which provides protection against particulates but not against gases or vapors.
The COVID-19 pandemic began in the U.S. state of Utah in early March with travel-related cases. Residents stockpiled goods, large conferences were cancelled, a state of emergency was declared, and all public universities and colleges switched to online classes. After the first case of community spread was found on March 14, Utah faced a shortage of testing kits, and public schools were ordered closed. Community spread was confirmed in more counties, and the state issued a public health order prohibiting dine-in service in restaurants and gatherings of more than 10 people except in grocery stores. A 5.7-magnitude earthquake struck the Wasatch Front on March 18, hampering the pandemic response. In late March, the state directed all people to voluntarily stay at home as much as possible. Salt Lake, Davis, Weber, Morgan, Tooele, Summit, and Wasatch counties directed people to stay at home except for essential activities. In April, the state briefly ordered all adults entering the state to fill out an online travel declaration. It established phased guidelines for the public to follow and moved from the "red" phase to the "orange" phase at the start of May, advising people to leave home infrequently, staying six feet away from others and wearing face masks when in public. On May 16, the "yellow" guidelines went into effect in most of the state, advising people to continue to stay six feet away from others when outside the home and to wear face coverings when social distancing is difficult to maintain. The counties of Summit, Wasatch, and Grand and the cities of Salt Lake and West Valley remained under "orange" guidelines.
Economic turmoil associated with the COVID-19 pandemic has had wide-ranging and severe impacts upon financial markets, including stock, bond, and commodity markets. Major events included a described Russia–Saudi Arabia oil price war after failing to reach an OPEC+ agreement that resulted in a collapse of crude oil prices and a stock market crash in March 2020. The effects upon markets are part of the coronavirus recession and among the many economic impacts of the pandemic.
The COVID-19 pandemic affects the global food industry as governments close down restaurants and bars to slow the spread of the virus. Across the world, restaurants' daily traffic dropped precipitously compared to the same period in 2019. Closures of restaurants caused a ripple effect among related industries such as food production, liquor, wine, and beer production, food and beverage shipping, fishing, and farming.
Medical materials and other goods shortages caused by the COVID-19 pandemic quickly became a major issue of the pandemic. The matter of pandemic-related shortage has been studied in the past and has been documented in recent events. On the medical side, shortages of personal protective equipment such as medical masks, gloves, face shields, gear, sanitising products, are also joined by potential shortage of more advanced devices such as hospital beds, ICU beds, oxygen therapy, ventilators and ECMO devices. Human resources, especially in terms of medical staff, may be drained by the overwhelming extent of the epidemic and associated workload, together with losses by contamination, isolation, sickness or mortality among health care workers. Territories are differently equipped to face the pandemic. Various emergency measures have been taken to ramp up equipment levels such as purchases, while calls for donations, local 3D makers, volunteer staffing, mandatory draft, or seizure of stocks and factory lines have also occurred. Bidding wars between different countries and states over these items are reported to be a major issue, with price increases, orders seized by local government, or cancelled by selling company to be redirected to higher bidder. In some cases, medical workers have been ordered to not speak about these shortages of resources.
The coronavirus recession, also known as the Great Lockdown or the Great Shutdown, is a severe and ongoing global recession. An economic consequence of the ongoing COVID-19 pandemic, the first major sign of the coronavirus recession was the 2020 stock market crash on 20 February, and the International Monetary Fund (IMF) reported on 14 April that all of the G7 nations had already entered or were entering into a "deep recession" and that there had already been a significant slowdown of growth in emerging economies. IMF projects suggest that the coronavirus recession will be the most severe global economic downturn since the Great Depression, and that it will be "far worse" than the Great Recession of 2009.
The COVID-19 pandemic has had far-reaching consequences beyond the spread of the disease itself and efforts to quarantine it. As the SARS-CoV-2 virus has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business in the services sector. The pandemic caused the largest global recession in history, with more than a third of the global population at the time being placed on lockdown.
The economic impact of the 2020 coronavirus pandemic in the United States has been largely disruptive. They adversely affected travel, financial markets, employment, a number of industries, and shipping.
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