According to the chief economist from Moody’s Analytics, Mark Zandi, the US economy was recovering till now, but the second wave of the coronavirus can undo all the progress. In the absence of another stimulus package, there’s no hope for the economy to continue its recovery.
A few weeks ago, the coronavirus cases in the US were averaging about 40,000 per day, however, now the number has increased to more than 100,000 per day according to John Hopkins University. This is the highest number of cases per day reported since the beginning of the pandemic.
Moreover, the US also has the highest number of people infected worldwide at 9.6 million infections.
The second wave has arrived in Europe and they have had to impose strict coronavirus SOPs to control the spread of the virus which is going to inevitably damage the economy. A similar situation is to follow for the United States as well.
Moreover, Zandi also commented on the matter that the country is receiving no financial support from the government to keep the economy afloat. The previous stimulus package CARES Act worth $2 trillion will expire soon.
Congress is also in a deadlock on the decision to release a new package for financial support because the Republicans and Democrats have not been able to reach common ground on what to spend on and what the size of the package should be.
It is most likely that a decision will not be made until the inauguration of the new government in January, which means the economy will be vulnerable for the next few months.
The Senate Majority Leader has announced that working on a new fiscal relief package is his priority. However, an award-winning economist has commented on the matter, saying that he does not believe the senator will approve a package that is large enough.
Zandi also continues to add that a split government will reduce the chances of the country receiving a large stimulus package. This will translate into less growth for the economy.
The vote-counting process is going on, however, Joe Biden is ahead by 253 electoral votes and 17 more votes are required for him to win. There is hope for the country if Biden wins, as Trump was seeking to abolish the CARES Act and had dismissed advice from health professionals throughout the pandemic.