Impact Of Covid 19 On American Economy Essay

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What is the Impact of Covid-19 on the American Economy?

The pandemic has affected the US economy more than any other event in the past decade. In

most cases, pandemics such as Covid-19 can impact the economy of any country adversely. For

instance, the rise of infection rates to more than 1,928,412 and death rates to 110,347 in the US

by July 2020 disrupted various sectors of the American economy (Roy 2). The Covid-19

pandemic impacted the US economy negatively due to increased unemployment, breakdown of

distribution networks, business failure, healthcare expenditure, and reduced GDP regardless of a

few claims that it introduced new employment and business opportunities.

Covid-19 disrupted the American economy negatively due to increased cases of

unemployment. A great number of people in the US lost jobs, and more than 52.2 million of

them filed for unemployment insurance benefits following the loss of more than 870,000 jobs

because of the "abrupt halt in March 2020" that saw a significant number of businesses close

down (CEPAL 3). In March, people lost jobs when World Health Organization (WHO) declared

Covid-19 a global disaster and recommended businesses, schools, restaurants, and other

institutions to close down. This led to a mass loss of jobs since businesses were afraid of

retaining and paying employees at home, especially when not working. However, some critics

have a contrary opinion and argue that the economy reopened quickly and people regained their

jobs. Others were lucky enough secure freelance job opportunities in different online platforms

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(Brynjolfsson et al. 23). Unfortunately, the "2.5 million jobs created in May and 4.8 million in

June" could not absorb all the 50 million people who lost their jobs in the US (CEPAL 4).

Therefore, it is justified that Covid-19 led to mass loss of job opportunities regardless of a few

opportunities created by the reopening of the economy and the gig economy. This caused

economic hardships and reduced people’s purchasing power and overall consumption.

The American economy was adversely affected due to the disruption of supply chains and

business closures. Lockdowns and movement restrictions slowed down national and international

trade because the disconnected supply chains limited the free flow of goods and services within

and outside the country (CEPAL 12). Conversely, some people think that the pandemic

promoted economic growth because e-businesses thrived well. After all, more customers shifted

to online shopping due to the fear of contracting the deadly virus if they shop in crowded malls

and stores. Again, the pandemic created more opportunities to manufacture and sell masks,

sanitizers, vaccines, and other Covid-19 related supplies in offline and online stores (Elhim and

Elsayed 2). However, restriction of movement and lockdowns lead to a significant decline in the

total exports in the US "by $141.5 billion (13.6%) and imports by $173.1 billion (13.3%) in

2020, leading to reduced profits and shutdown of major businesses in the country (CEPA 12).

This economic decline cannot be replenished or supported by the few opportunities created by

the pandemic. Lockdowns and movement restrictions had far-fetched impacts that disrupted the

supply of goods and services, causing many businesses in the US to close due to reduced revenue

and profitability.

The pandemic has been a period of economic doom that prevented people and businesses

from taking risks due to the uncertainties involved. The increasing shutdown of businesses and

economic decline caused panic and prevented businesses and individuals from taking risks to

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Surname 1 Student’s Name Professor’s Name Course Date What is the Impact of Covid-19 on the American Economy? The pandemic has affected the US economy more than any other event in the past decade. In most cases, pandemics such as Covid-19 can impact the economy of any country adversely. For instance, the rise of infection rates to more than 1,928,412 and death rates to 110,347 in the US by July 2020 disrupted various sectors of the American economy (Roy 2). The Covid-19 pandemic impacted the US economy negatively due to increased unemployment, breakdown of distribution networks, business failure, healthcare expenditure, and reduced GDP regardless of a few claims that it introduced new employment and business opportunities. Covid-19 disrupted the American economy negatively due to increased cases of unemployment. A great number of people in the US lost jobs, and more than 52.2 million of them filed for unemployment insurance benefits following the loss of more than 870,000 jobs because of the "abrupt halt in March 2020" that saw a significant number of businesses close down (CEPAL 3). In March, people lost jobs when World Health Organization (WHO) declared Covid-19 a global disaster and recommended businesses, schools, restaurants, and other institutions to close down. This led to a mass loss of jobs since businesses were afraid of retaining and paying employees at home, especially when not working. However, some critics have a contrary opinion and argue that the economy ...
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