COVID-19: The Unstoppable Economic Impact on US & Global Economies - Essay Sample

Introduction

Threats that emerge in different countries all over the world have vast potentials of causing adverse effects to various economies. The new strain of coronavirus, which causes COVID-19, has had many effects on the United States economy. As the epidemic continues in the coming months, it will have adverse effects on other economies, which will take years to recover from.

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How Corona Virus Has Affected the US Economy

Coronavirus has disrupted the universal supply of goods, which has made it hard for various firms in the United States to place or supply any orders. Many workers have been waylaid in most of the affected areas like products, and labor supply decreases every day (Vinelli et al., 2020). With the decreased labor supply and the locking of people in their houses, the demand for products and services from the country has drastically reduced, causing significant uncertainties across the country and the world at large because it is a significant player in the other world economies.

The virus has caused economic disruptions, which in turn have increased the volatility in financial markets, causing more risks to how secure the economy is (Jones et al., 2020). The government has been forced to support the various households that are vulnerable to poverty as well as the smaller businesses in the country to reduce the shock that the country will face by the time the epidemic is contained.

Boosting the Economy

To boost the economy, Trump and the other policymakers in the United States will be expected to take several measures to reduce the chances of any economic fall-outs caused by the virus. Trump and Congress should engage in fiscal stimulus where they will assure the various businesses in the country that things will not go wrong when the virus hits that sector (Goldin, 2020). Trump should also calm all financial markets in the country and aim at containing the economic risks even if the virus is not easily carried.

How the US Economy Will Affect Other Economies

The US economy will affect the other economies globally as the coronavirus continues to spread uncontrollably as exports from the country continue reducing. Thousands of companies in the country have temporarily been shut or throttled down (Goolsbee, 2020). The shutting down of these companies, most of which are manufacturing and assembly plants, has disrupted global chains of supply and demand for products and services, and this has affected the way various products are exported to other countries.

The lockdown of other service providers, such as airports, has also reduced the rate at which other countries can export their products and services to the United States (Goolsbee, 2020). In the coming months, many countries will prohibit any movement of goods, services, and people from one country to another, and this will be a huge blow, especially to those economies that mainly rely on the United States.

The US Future Economy

The future economy of the United States, with the increasing coronavirus infections, deaths, and uncertainty as to when it will be contained, is going to reduce or bring to a standstill the growth of economies in the United States and the world. Financial markets will have low-interest rates, and the central bank will have no protection against possible economic fall-outs (Kurtz, 2020). Coronavirus will destroy the American economy as the number of people becoming unemployed increases and is evidenced by an end to decades of expansion in one of the world's most expanding economies.

The US economy has not yet faced adverse effects similar to those it faced in World War II. Still, depending on the number of months or years that the situation will last, it might surpass the adverse effects it faced almost six decades ago (Scott & Stewart, 2020). The American economy will take either a month or two to recover if the epidemic is controlled in the next two months. However, if it takes years to control the virus, the economy will take years or a decade to recover.

References

Goldin, I. (2020). Opinion | The US Economy Can't Withstand the Coronavirus by Itself. Retrieved 11 April 2020, from https://www.nytimes.com/2020/03/16/opinion/coronavirus-economy.html

Goolsbee, A. (2020). Why the Coronavirus Could Threaten the US Economy Even More Than China's. Retrieved 11 April 2020, from https://www.nytimes.com/2020/03/06/business/coronavirus-economy-us-china.html

Jones, L., Brown, D., & Palumbo, D. (2020, 3 April). Coronavirus: A visual guide to the economic impact. Retrieved from https://www.bbc.com/news/business-51706225

Kurtz, A. (2020). How quickly can the US economy bounce back? That depends on the virus. Retrieved 11 April 2020, from https://edition.cnn.com/2020/04/02/economy/recession-how-long-will-it-be/index.html

Scott, D., & Stewart, E. (2020). When will the economy be good again?. Retrieved 11 April 2020, from https://www.vox.com/policy-and-politics/2020/4/9/21212743/coronavirus-economic-crash-2020-recovery-stock-market-covid-19

Vinelli, A., Weller, C. E., & Vijay, D. (2020, 6 March). The Economic Impact of Coronavirus in the US and Possible Economic Policy Responses. https://www.americanprogress.org/issues/economy/news/2020/03/06/481394/economic-impact-coronavirus-united-states-possible-economic-policy-responses/