Free Essay on the Post-pandemic Economic Thoughts in the USA of the COVID-19

Introduction

Two days before the world ushered the New Year, a patient in Wuhan was suffering from extreme pneumonia. The doctors tried to identify what had caused this condition, but they did not have a clue (2020). It prompted the doctors to employ a diagnostic method they had used on the SARS outbreak in 2003. The diagnostic process adopted was called bronchoalveolar lavage.

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The diagnostic method involved inserting a bronchoscope into the respiratory system, then measuring the amount of fluid in the chest cavity, and collecting samples. Later on, the virus was able to be identified in two areas. The first area is the lungs, and the second area is intestinal tissues. Several people continued to go to hospitals and were all suffering from pneumonia.

Statement of the problem

On January 11th, 2020, China reported its first death from the disease. ("China Reports First Death From New Virus," 2020) The deceased was an older man who had been to the Wuhan market, where the outbreak began. Nearly three weeks later, a returnee from the city of Wuhan tests positive for the virus in the United States of America. There are also some cases reported in other countries in the world.

As a result, the president of America formed a task force to look into the issue and declared a health emergency in the country.it restricted entry of people from China into the United States of America. Later, on January 30th, the world health organization declares the disease a global pandemic.

It informed the world that containment had failed, and countries should prepare themselves to battle with this disease. Surprisingly, America took the warning by the organization lightly, as it was not yet affected. As a result, this paper is going to look at the Economic Implications of the Coronavirus.

Literature review

The pandemic has necessitated the need for interventions to counter the effects of the epidemic. Thus the United States of America's government passed the Coronavirus Aid, Relief, and Economic Security Act, which will help to shield the American people from the economic impact of the coronavirus ("Senate approves coronavirus relief bill," 2020). Experts have indicated that the economy is in a recession, and the fund will support businesses, industries, and the American citizen.

The fund has been divided into various sections to ensure all facets of the economy are covered. For instance, three hundred and sixty-seven billion dollars has been set aside for small-scale businesses. Every child is entitled to five hundred dollars, and each adult is allowed to twelve hundred dollars. Also, one hundred and fifty billion has been set aside for the other levels of government

A virtual lockdown is another intervention employed against the pandemic (Sarwal & Sarwal, 2020). It is the restriction of people moving within a state or a country to prevent the spread of disease. Several states in America have introduced lockdown to help curb the spread of coronavirus. Some of these states include New York, California, and Illinois. The governor of New York, Andrew Cuomo, stated that the lockdowns would help in flattening the coronavirus curve.

In reaction to the pandemic, companies have also decided to give a helping hand. Most businesses have made it a priority to ensure that there is enough safety gear to help in battling coronavirus (Barua, 2020). For instance, some companies are making ventilators, others are manufacturing rubber gloves, and others are involved in the production of face masks. Other companies like BioMerieux are helping in the development of testing kits.

COVID-19 has negatively affected the economy and has occasioned huge losses. Firstly, the global workforce has been wholly disrupted (Barua, 2020). The international labor organization estimates that twenty-two million people globally will lose their jobs. It means that these people will not have a source of income. Loss of income then translates into many other adverse effects.

For instance, people will be using the money for only essential services, thereby diminishing the consumption power (Barua, 2020). It will translate into businesses closing, layoffs, and losses due to no demand for goods and services. Countries are trying to mitigate this impact by cushioning the economy. For instance, the United States of America and the United Kingdom have set money apart to mitigate the negative impact.

Secondly, COVID-19 has made the repayment of loans to be a laborious affair. Businesses all over the world have been negatively affected by this pandemic (Barua, 2020). Most of them are not making any money, and they had taken out massive loans for investing in the business. Individuals have also been not able to meet their loan obligations due to unemployment.

Defaulting in loans will hurt financial institutions in the economy (Barua, 2020). Usually, banks are in the business of giving capital and getting interested in the capital. Now that loans cannot be repaid, this will result in many banks incurring losses. Another negative impact of this pandemic is that it has led to the crash of the stock market. Most stock markets have crashed, leading to individuals incurring massive losses. Many sellers are disposing of their market shares.

Conclusion

In conclusion, the government of the United States of America should take stringent measures to ensure that the disease does not spread. Though measures like lockdown affect the economy, it is necessary for ensuring the curve flattens. It should be noted that uniting people stand to benefit, and thus people must come together to defeat this disease.

References

Who.int. (2020). Retrieved 10 April 2020, from https://www.who.int/docs/default-source/coronaviruse/who-china-joint-mission-on-covid-19-final-report.pdf.

Barua, S. (2020). Understanding Coronanomics: The Economic Implications of the Coronavirus (COVID-19) Pandemic. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3566477

China Reports First Death From New Virus. Nytimes.com. (2020). Retrieved 10 April 2020, from https://www.nytimes.com/2020/01/10/world/asia/china-virus-wuhan-death.html.

Sarwal, R., & Sarwal, T. (2020). Mitigating COVID-19 With Lockdowns: A Possible Exit Strategy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3563538Senate approves coronavirus relief bill. (2020), 30(13), 7-7. https://doi.org/10.1002/mhw.32298