The Treasury and the Federal Reserve are getting ready to use the 500 Billion Dollar fund for severely distressed sectors, a part of the CARES relief act. With the ongoing coronavirus pandemic, many businesses took a hit and are in need of stabilization. 500 billion dollars is a huge amount, the Treasury and the Federal Reserve should use it strategically in order to get the most out of it.
One can argue that these funds should be distributed to all industries equally, but not everything is essential to survival, given the circumstances. There are some industries that are crucial to our survival in this world and are essential to our fight against the virus, such as food manufacturing and food distribution, power, communications, transportation, water, waste removal, etc.
There are people who are reluctant to allocate the funds for these corporations since many of them are owned by private companies with enough resources. But given the circumstances, their resources aren’t enough to survive this time. No one was ready for a pandemic. Food manufacturing is going down, food distributors are going out of business, food traders have nothing to trade since food manufacturers and food distributors are out of business. The situation is similar in other industries too. We haven’t hit the rock bottom yet, but it is a possibility.
That’s why the Federal Reserve and Treasury need to act strategically. It is essential that at least 100 billion dollars are to be reserved for core and core systems only. We can’t compromise on any of the core economic systems, as they are connected to each other. Shortage of power will result in a shortage of fuel and shortage of fuel will result in a shortage of transportation and this will go on and will have damaging effects on the economy and health of the people.
Core systems in the country are robust, while there is no immediate need of providing these funds for them, we have to reserve the funds just in case there is a need for them. We were not prepared for a pandemic, but we can start preparing for its effects. Looking at the food manufacturing, food distributors, and food traders, they are one of the most essential parts of the economy and living. They should also start saving their resources and putting them to good use. They can do such by incorporating software like food ERP.
Food ERP is a resource management software, specifically designed for food manufacturing, distribution, and trading. Food ERP can help food traders to use the resources they have in hand, and they might get from the federal reserve to use them efficiently.