Covid-19 Impacts on the US GDP Essay.
Covid 19 Impacts on the US GDP
Covid 19 impacts on the US GDP
The outbreak of the novel Corona Virus (Covid 19) has borough immeasurable consequences to the global economy disrupting many countries economic foundationss. The US in particular has experienced a major decrease in the GDP. In comparison to times before the inception of the virus, the GDP has depreciated by around 34 % presenting an economic issue in the country. This paper interviews these economic issues addressing the economic changes that have arisen analyzing the theoretical frameworks of the economy and availing probable applicable solutions and recommendations that can help cope with the crisis.
Covid 19 an economic issue
The outbreak of the Covid 19 pandemic was an unprecedented peril. The US has had its share of economic depravities that have been advanced by the continual spread of the virus that has set most productivity to a standstill. The US GDP has been immensely affected resulting in low overall balances in the years following the outbreak. The spread of the virus resulted in layoffs and loss of employment for many people in the US (Patton, 2021). The unemployment rates experienced presently align with the post-WWII period and such is a big setback. There exists a balance in economics that is supply and demand. With the loss of jobs and increased unemployment rates, the consumers purchase power has greatly reduced resulting in reduced public spending hence affecting the supply chain sector creating a chain reaction of economic issues that cause the reduction of the GDP(Patton,2021). The manufacturing industry has also faced tremendous problems that have seen the closure of several industries as a result of the pandemic precautionary measures that required compliance.
The effects on the GDP have been contributed by numerous economic elements. However, Unemployment rates, Consumers purchase power and manufacturing industries have contributed to the larger marginal losses on the GDP. The Covid 19 economy caused various effects on the global platform and the cooperation of countries disaster and crisis management capabilities have been put to teat(Vinelli et al,2020). The progression of the outbreak leads to the disruption of many aspects of the economy such as finance and marketing. The US faces the problems associated with supply chain and marketing factored in the decrease in productivity from the disruption of manufacturing and loss of employment cutting short on the most essential component of the GDP. The Covid 19 pandemic has set back the US economy and the need to find viable withstanding solutions is necessitated.
The solution to Covid 19 economic issue
The Covid 19 pandemic has set the world and the US in uncertainty and deciding on the rightful approach is a process that requires setting long term measures. To address this issue requires policymaking. The US has seen its fair share of economic issues over time. Having recovered from the post-WWII period and the great recession, the country can re-employ past solutions to recalibrate the GDP and sustain its economic reputation. Economists suggest that the country should learn from their past experiences and develop measures and policies that can help the country and the public cope during the crisis present and future (Cheng, 2021).
To ensure sustainability and reduce the fluctuation in the GDP, the US should be particularly invested in the public. In this regard, unemployment and purchasing power has been identified as a component of the GDP. The government, through acts and statutes such as the Lay-off prevention act, serves to ensure that the public interest is paramount. The US government should identify the trends in economic changes influenced by different or similar crises. In this case, to sustain and improve the GDP, the government need to understand economic compromises that can be actualized during times of crisis. The Great Recession is an example of an economic crisis that can be a benchmark (Cheng, 2021). The country should set up adaptive economic policies that can be flexible and accommodative to occurring and recurring economic issues.
The potential effectiveness of these solutions is immense since they work towards creating solutions such as giving relief and long term solutions such as economic policies and Layoff Prevention Acts. There however are certain weaknesses aligned with the government role that is to boost the economy for both public interest and enterprises interrupted by the pandemic. This could prove to be an expensive consequence.
The US government should employ the countries experience in tackling crises to develop better and improved policies that serve to ensure the long-term sustainability of the GDP. Policymakers and economists should collaborate to develop functional long-term policies to avert similar economic changes.
The US is a global economic leader that has the capabilities and experience that can ensure the toll on the economy caused by the pandemic is neutrality and the GDP is sustained. Through the suggested solutions such as public interest and economic policymaking, the ability for gradual and continuous improvements will be enabled.
Cheng, W. L. (2021). Lessons from the past on how to revive the US economy AFTER COVID-
Patton, M. (2021). The Impact of Covid-19 On Us Economy And Financial Markets. Forbes.
VinellWelcleaclear E.C, Vijay.D (2020). The economic impact of coronavirus in the U.S. and possible economic policy responses. Center for American Progress. https://www.americanprogress.org/issues/economy/news/2020/03/06/481394/economic-impact-coronavirus-united-states-possible-economic-policy-responses/.