The COVID pandemic has affected people all over the world, whether we talk about its effects on people’s health, wellbeing, or economic conditions. The United States is among the countries that are badly affected by the pandemic.
According to an estimate, the US economy shrunk by 32.9% in just the second quarter. The situation has become worse for the Americans as around 33.3 million people are suffering from unemployment due to the pandemic.
The stock market crashed in February and a major recession has been witnessed by the financial institutions. But there’s hope, as signs of the economic recovery are appearing again. Recovering fully sooner is difficult and it is a long process, but at least the graph is not going down the way it did when the pandemic hit the country.
The recent stock market performance indicates that this could be the end of the recession. But economists fear we are heading towards a k-shaped recovery. This means that people with a good education and high income are more likely to get an advantage than the middle- and lower-class people.
For example, the recession has not hit the white-collar workers as hard as it has hit restaurant or hotel employees, because white-collar workers were able to do their jobs remotely.
The government is trying its best to play its part in recovering from the crisis by taking initiatives like the Paycheck Protection Program. But the economic impact of the pandemic is on such a scale that even the government can only help a fraction of the population, as 30 million Americans are still left with no jobs.
Around 29 million US adults are facing food insecurity. A lot of people are hopeless as The Federal Food Program expires on the 30th of September. So clearly, the government must do a lot to revive the economy of the U.S.
The recession is estimated to end in mid-2021 according to experts. The only hope for a full recovery is by the end of the pandemic, which can only happen if a vaccine become available or herd immunity is developed. A hybrid of the two is also possible.
Many vaccines have entered the last phase of human trials, so this is something people have their eyes on. Until then, we need to hold on and keep the faith.