Business

How the American economy has been recovering from COVID-19

After seeing  COVID-19 rampage across China, America called for a nationwide lockdown to prevent the spread of the disease last year. As a result of this nationwide lockdown, America’s markets, especially small businesses, took a substantial hit due to the lack of economic activity. Small business revenue went down 20%  from January to September. Businesses aren’t the only ones who are suffering, though. Many employees feared losing their jobs as unemployment rates skyrocketed. The part-time worker unemployment rate rose to 24.5% and the full-time worker unemployment rate rose to 12.9% in April 2020. So is there any hope of the American economy returning to normal anytime soon?

Questions answered in this article (1-2 min read)

  1. How close is America’s economy back to being normal?
  2. How has the government helped to restore the economy?

1: How close is America’s economy back to being normal?

Trump declared the Coronavirus a national emergency on March 13th, 2020. At that point, according to CNN’s Back-to-Normal Index, America was functioning at 93.7% of where it was earlier that year. At the time of writing this article, America is functioning at 78% of what it was before the virus entered China. Pictured below is the graph of the Back-to-Normal Index.  

A graph made by CNN’s Back-to Normal Index portraying the strength of America’s economy over time in relation to before the pandemic.

2: How has the government helped to restore the economy?

Although the economy isn’t recovering as fast as we hoped, the government has been taking steps to speed up the process. One of the most popular steps that the government has done was passing out stimulus checks to those who need them the most. The IRS stated that they have sent stimulus checks to over 160 million people, accumulating to a total of $270 billion.  Both Biden and Trump have passed stimulus bills to help revitalize the economy, and their effects remain to be seen in the following weeks.


TL;DR

  • COVID-19 has caused a plunge in America’s economy due to the lack of market activity, leading to many being left unemployed.
  • The economy is very slowly coming back to normal.
  • The government has helped with this recovery by providing stimulus checks to those who need them.

Sources

https://www.brookings.edu/research/ten-facts-about-covid-19-and-the-u-s-economy

https://fas.org/sgp/crs/misc/R46554.pdf

https://www.cnn.com/business/us-economic-recovery-coronavirus

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