The effects of COVID-19 on the US economy

The effects of COVID-19 on the US economy

The effects of COVID-19 on the US economy. Coronavirus disease 2019(COVID-19) has been a significant source of public health and economic crises in the United States and the world. The effects of COVID-19 on the economy have been both direct and indirect. Directs impacts on the economy of caused by workplace absenteeism, deaths, and Productivity reduction. The indirect effect of the disease breaks down to demand and supply shock. The people of the US are short of goods and services they need due to lower productivity.  Covid has led to reduced consumer activity and stagnation in stock markets which has led the US into an economic crisis, advanced economy before the pandemic has advanced to depression or recession.

The Impacts of the Coronavirus on the Economy of the United States

 

 

COVID-19 has led to the closure of businesses and companies during lockdowns. The more companies and businesses close, the more people are leadoff from work, affecting people and business productivity. Unemployment has increased due to more firms not being able to accommodate more employees. More unemployed people mean that there is a decreased purchasing power of products by people. Less purchasing has resulted in defaulting of loans by businesses and companies (Haryanto and Tri, pg 5) Defaulting of loans has led to bank companies forcefully auctioning properties of the business, leading to a further crisis in the economy of the US.

The Impact Of Covid-19 On U.S. Economy And Financial Markets

 

Since the onset of the corona disease pandemic, tourism in the US has come to a standstill. Paralysis in tourism affected employment and the economy directly. Travel restrictions and entry bans to control the spread of corona disease have led to few traveling tourists. US has also introduced global regulations to some foreign countries and territories and prevented US citizens from traveling to some countries, leading to few tourists from these countries. Being closed for tourist attraction sites such amusements parks, museums, and sports events result in low tourist turnout (Haryanto and Tri, pg 5). Tourism is a significant source of income in the US, and disruption of tourism results in a negative economic impact.

The effects of COVID-19 on the US economy

 

                        Due to the COVID-19 pandemic, the agriculture sector has been affected by the prices of commodities and food supply. Agricultural production in the US has decreased due to lower consumer demand and price increase in farm products. Lowe consumer demand is due to a lack of employment and a fall in household income. The agricultural sector is affected more because of travel restrictions; agriculture is dependent on the transport industry. (Beck, Thorsten, and Jan Keil, 2021) Travel bans have led to farm products not being transported to consumers. Low demand for agriculture due to low household income and low supply due to travel bands will put downward pressure on agricultural revenues.

The Economic Impact of Coronavirus in the U.S. and Possible Economic Policy Responses

The spread of corona disease is likely to continue spreading in different unites states affecting the economy more and negatively affecting the processing and manufacturing industries. Currently, a COVID-19 vaccine is available and slowing down the impacts of COVID both in the healthcare sector and economy. Economy recovery is a process that will take time before reaching the same level before the economy happened. Economy recovery in the US will take more time because the disease is easily communicable and has global connectivity. The disease needs to be controlled by international efforts for a faster economic recovery.

Work cited

Beck, Thorsten, and Jan Keil. “Are Banks Catching Corona? Effects of COVID on Lending in the US.” (2021).

Haryanto, Tri. “COVID-19 pandemic and international tourism demand.” JDE (Journal of Developing Economies) 5.1 (2020): 1-5.