The coronavirus has been disastrous for the world. It has been a trying time for America, especially. Not only has the nation struggled with health, loss, and death but also with the economy. This pandemic has changed the practice of everyday economy in households all over the country and the macroeconomics of the nation. However, this event has not ended. It is estimated that the economy will fall even more as COVID-19 is drawn out. There are those who feel this pandemic will do good for the economy, but the economy will continue to drop because of the disruption of supply and demand, unemployment, and economic uncertainty created by this disaster. American citizens have started preparing for what seems like an apocalypse.
Demand for essential household items has heightened immensely. The mass public fears running out of simple things such as toilet paper. Manufacturers were not prepared for the workers, time, and supplies that were needed to keep up with the demand. The demand schedule has clearly deviated from what is expected in everyday life because of this pandemic. However, there is another outcome on the opposite side of the spectrum. People are also lessening their demand for consumer goods to protect themselves from contracting COVID-19. The risk that is involved in services like going out to eat, traveling, and even entering a building is weighed over the absence of a product. Outbreaks, disease, and death have been fierce demand shifters. There has been an extensive shortage of supply during the event of coronavirus. Buyers are purchasing beyond the norm. This is an arduous time for companies, which either face the extreme of too much or too little demand.
Some suppliers had to lay off employees because there was not enough business to keep them afloat or due to health reasons. Companies that provide services are being neglected to keep the coronavirus from spreading, and the companies that provide what are considered necessities are being bombarded by customers. The supply chain has been disrupted. Some Chinese factories have been forced to shut down to prevent COVID-19 from spreading. Among these factories, parts are produced. When specific parts stop being made together, it inhibits products to completed entirely. These factors harbor tremendous struggles for suppliers. America’s unemployment rate was at its lowest percentage in fifty years. There was a copious amount of jobs being created. It was a big boost to our country because unemployment was becoming a considerable problem. Then the coronavirus hit. Millions of workers all over the nation were sent home, whether it was due to lack of business or safety reasons.
Millions of people have applied for unemployment benefits. Most of these people either lost a job completely or lost the privilege of being paid. This does not only hinder production for the country but the ability of the American people to create demand. Chavez 3 Economic uncertainty has shaken the nation at an alarming rate. At the start of the pandemic, the treasury yield began to decrease; on March 3, the yield rate sank below 1 percent. This is the lowest the treasury yield has dropped in 150 years. This created chaos on wall street because the treasury yield is somewhat viewed as an index of fear for the economy. Along with changing interest rates. Long-term rates are decreasing while short-term rates are spiking; America is experiencing an inverted yield curve. Market volatility has leaped from 15 percent to Forty percent in a month.
These volatility levels have been described as horrible as the worst economic disruptions in the last 30 years. Some say that because of this disaster, our economy will actually be boosted. Their reasoning comes from the supply chain that has been disrupted. Their thought is that companies will rethink their supply chain because of specialized parts that are being made in other countries due to factory shutdowns. Therefore, companies will instead keep everything in-house, which would require more employees. Jobs would be created to make the parts that were once made overseas, and more money would be circling. However, this is highly unlikely. As of right now, it seems that the economy will need some time to recover.
Cutting off trade with overseas countries like china would drastically change prices in America, hurting the middle and lower class, and China, in return, would most likely cease exports from America. Ultimately hurting the economy even more. This virus has changed every aspect of American lives. The natural order of the economy has been thrown off. The economy will continue to suffer as this pandemic makes its mark across the world. It is not known just how bad this event will be for America, but what is known is that it will put a dent in our economy for some time. The economy continues to hurt as unemployment rises, the industries experience supply and demand shock, and economic uncertainty grips the country. Coronavirus not only took hold of our nation’s health but of our nation’s pockets as well.
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