Delmy B. Rodriguez
Christina Kulich, Instructor
POP-20SMU-GVT-180-D
07/29/2020
The U.S. Economy vs. COVID-19
As the novel coronavirus (COVID-19) flows through America’s biggest cities, its effect is being felt far beyond the over five million Americans who are confirmed infected. The economic impact of the COVID-19 pandemic in the United States has been largely disruptive. It has adversely affected travel, financial markets, employment, a number of industries, and shipping. “The U.S. economy suffered its biggest blow since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus” (Mutikani).
As the nation struggles to contain a rapidly spreading pandemic, hundreds of thousands of people are fighting for their lives and the U.S. economy is in danger of lurching to a halt putting millions of livelihoods in danger. The lockdowns and quarantines that are needed to fight the virus’s spread are also freezing the economy with unprecedented force and speed.
The coronavirus pandemic and the government’s response to reduce its effects have drastically altered the U.S. economic outlook. The pandemic and the resulting reductions in social and economic activity, however, have altered that trajectory. According to Berkley News, “The COVID-19 pandemic is confronting every level of the U.S. economy with an unprecedented challenge, and the government must mount a sustained, ambitious economic response lasting months and perhaps years.” (Lempinen). One key risk is the number of businesses that are forced to close during the lockdowns. The more business closures and the more layoffs that result the higher the cost of the crisis will be. The COVID-19 pandemic precipitated a historic shuttering of the economy in March, guaranteeing that the broadest measure of economic wellbeing real quarterly GDP growth would reflect some of the devastation in the first quarter. “The challenges that underserved communities face differ widely, depending on, among other things, the severity of the problems and resources for tackling economic development…” (Carol). What happens next will largely depend on how the Covid-19 crisis evolves. In the best-case scenario, the virus will be contained in the near future and the economy will start to gradually see a rise again.
References
Edward Lempinen| April 10, 2020April 15, and Edward Lempinen. “COVID-19: Economic Impact, Human Solutions.” Berkeley News, 15 Apr. 2020, news.berkeley.edu/2020/04/10/covid-19-economic-impact-human-solutions/.
Carol, Dan. “This Is How Cities Can Emerge Stronger After COVID-19.” U.S. News & World Report, U.S. News & World Report, 20 July 2020, www.usnews.com/news/cities/articles/2020-07-20/how-local-governments-can-emerge-stronger-from-covid-19.
Mutikani, Lucia. “COVID-19 Crushes U.S. Economy in Second Quarter; Rising Virus Cases Loom over Recovery.” Reuters, Thomson Reuters, 30 July 2020, www.reuters.com/article/us-usa-economy/covid-19-crushes-u-s-economy-in-second-quarter-rising-virus-cases-loom-over-recovery-idUSKCN24V0FO.
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