The effects of the pandemic remain prominent on Wall Street. With no clear picture of when the pandemic will be over, many countries around the world are reconsidering their economic plans. The US government is also reconsidering its plans to achieve its growth targets.
However, the greatest burden that the US economy faced, along with the lockdown, was the huge unemployment that came with it. The level of unemployment increased as the situation deteriorated. The increase in unemployment in the last few months was more than the country has seen since the Great Recession.
Many experts compared the two eras to decide how long it will take to recover from this. The number of people left unemployed after the pandemic reached up to 40 million.
Not just this, but the government had devised a recovery plan keeping the future growth targets in mind. The strategy was to fund small businesses to retain jobs and keep them afloat as long as possible, so they could nurture the economy later on.
So, funding was announced for businesses to carry on their operations. The amount for this funding reached up to 3 trillion US dollars. This caused a massive dent in the economy itself by a drastic 76.3%.
The American economy before the pandemic was flourishing at an astounding rate. The unemployment rate was at its lowest as over 20 million jobs were added to the economy.
The pandemic has resulted in almost 222,000 deaths, while the rate of unemployment has increased to 11.1%. In some states, the conditions are getting worse as the number of people getting infected is increasing.
Since the Presidential Elections are just around the corner, President Trump is giving his absolute best to get re-elected. However, Biden has criticized Trump’s strategies during the pandemic. He is of the view that a better job could’ve been done to avoid the situation that is at present.
Christopher Way, a professor at Cornell University has stated that the economic report for the second half of the tenure of the President does not matter. As the pandemic started, the country fell into a recession. The initial years of the government tenure will be used as the evaluator of Trump’s performances.