Photo by Ferran Feixas on Unsplash
Hey there, and welcome to issue 034 of abroaden.co’s WTF is going on with the Economy?! Newsletter — our weekly economic update for people living and working abroad.
What we're watching
The expedited vaccine roll-out in Europe
Last week, we lamented the relative delays in the EU over bringing the first vaccine to market. It seems that EU leaders were reading our newsletter (okay, probably not, but still, it's great for the 'ole ego to think otherwise). As it stands now, the vaccine will ship later this week in time for a roll out in the coming days.
There's still a debate to be had about who gets priority beyond first-line responders and healthcare workers. Again, if retirees power your economy, then they probably should go first.
Otherwise, it probably makes more sense to prioritize workers and young super-spreaders. Doing so would significantly impact stopping transmission (and getting the economy going, too). We'll see if any other officials read what we're writing. In any case, the light at the end of the tunnel is getting brighter.
Brexit and the travel ban
It wouldn't be 2020 if something like a mutated virus made the drawn-out Brexit negotiations that more exciting. 🙄️
There are a couple of points to consider:
There are hard border closures that mimic a hard Brexit, at least as of this writing. Will this "sneak peek" force the negotiations forward?
The virus mutation is undoubtedly concerning, even if it's completely normal. What's more alarming from an economic point of view is how people will react to the news. If people are scared, then they'll stop spending. When people keep their money in the bank, it doesn't quickly re-enter the economy, slowing growth and recovery. Combining fear with a potential hard Brexit could be a recipe for economic disaster.
The US stimulus package
The US Congress just passed a new stimulus package. There are protections and funding for small businesses, the unemployed, direct payments, and more. These will be welcomed measures as it will provide a much-needed safety net for struggling families.
Of note, there are 25 billion dollars in rental relief in the bill. Beyond preventing evictions, this provision is crucial as it helps minimize mortgage defaults. The last thing the global economy needs right now is a banking crisis.
Are expats as we know them finished?
Last week, The Economist ran an article about how the pandemic will redefine what it means to be an expat. It's an interesting take, even if it focuses on Asia more than the rest of the world.
We think that the stereotypical jet-setting expat with a tax-free salary and all sorts of fancy perks will become more of a rarity.
However, we'll likely see a boom in people moving abroad for the hell of it like almost all you have done.
Thoughts? Let us know in the comments!
The long(er) read: It's okay. 😌️
For the year's last issue, we're taking a step back from the economy to take stock of what we've been through mentally in 2020.
Most people are surprised to learn that successful investing is about emotional and mental well-being as much as it is about proper management and the right advice.
It's true. Whether we like it or not, our mental health is intimately tied to our financial security and vice versa.
When our minds are distracted or we are in emotional distress, it cascades throughout our lives.
It inhibits our critical thinking skills, weakens our judgment, and causes us to make impulsive decisions — from our eating habits (hello, frozen pizza!) to buying or selling investments at the wrong time.
Emotional and mental stress can happen at any moment.
It comes from uncertainty over whatever factors are around us, regardless of whether or not they're within our control.
And this year?
We got put through some ridiculous CrossFit-style mental workout that none of us even had a chance to warm up for.
For starters, the whole 'living through a pandemic' experience was new to all of us.
Second, the economy went through the wildest ride in modern history.
Starting in February, it crashed faster than ever before to smashing new growth records in a matter of six months.
The exchange rates gave us stomach aches.
And that's just the surface.
Seriously, WTF?
Finally, we faced a physical and mental struggle as we were forced into a lockdown.
Being confined indoors was taxing on all of us, introverts included.
People, including some of you, lost their full-time work for absolutely no reason other than force majeure.
Together, these factors added untold stress to practically everyone’s mental and emotional health.
For people living abroad, it's been even worse.
We know that living abroad means giving up certain rights and making other sacrifices.
We can't vote or even fully participate in the societies where we live.
Instead, we're merely polite observers.
Of course, we know those are the costs going in.
It's one of the most significant drawbacks to being an expat, remote worker, whatever you want to call yourself.
This year felt different, though.
All of a sudden, the borders closed, shutting the international world we live in, depriving us of that escape route we thought we always had.
Governments prioritized their citizens first, pushing non-residents and expats to the side.
Our embassies told us to either repatriate or tough it out.
Some of us did either by choice or by necessity. Most of us stayed around.
Ever since the first lockdown, planning has been next to impossible.
In many cases, that meant abandoning trips back home, which is vital for us living abroad.
You know what I'm talking about.
It's that delightful reverse culture shock where you're a stranger in your own land.
It's the ease of communicating with and understanding everyone around you, giving you that much-needed mental break.
It's relishing your country's food in the way it's supposed to be cooked.
It's the joy of seeing old friends and family, relishing in the past (for whatever that's worth to you).
It's that reminder of why you moved abroad in the first place because you start to miss that thrill of living outside of your comfort zone.
Lots of us didn't get that reset this year.
It's even harder when we see our friends from the countries we live in getting to go back home during the holidays.
We know it’s not their fault because they don’t know what we go through.
They don't understand a quarter of what we put up with to live the life we want.
They don't have to take day-long drives to see family.
They don't know what it's like to sit on a plane for 8 hours and cross multiple timezones just to hug their loved ones.
We still don’t know when that’s going to be possible again.
It f-ing sucks.
But you know what?
We made it.💪️
You, I and millions of others living abroad went through an experience exponentially harder than those around us.
We're stronger for it -- stronger than we've ever been, and we should be proud of ourselves.
But right now, it's time to step back.
It's okay to let your guard down.
It's okay to let out that long sigh.
It's okay to cry.
Take this time to relax, reflect, and make new, unique traditions for the freakishly weird year that is 2020.
We’ll never forget these past 12 months.
However, if we're going to start 2021 in the right headspace, and be in a better place emotionally and financially, then it's time to let go, even just a little bit.
You owe it to yourself.
Happy holidays, everyone.
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We'll be back in early January, ready to do what every newsletter loves to do to start the year: making wild, baseless predictions about 2021! See you then!