Over the last week, counties all over America have started taking precautions as the death toll rises to 70 due to the Coronavirus. These precautions include closing schools, restaurants, businesses, and theatres, forcing millions of Americans to work or do school work at home. Local governments are encouraging people to stay home and avoid going to public places as much as possible. While toilet paper and hand sanitizer companies are thriving, the lack of local business is negatively affecting the economy. Goldman Sachs, a multinational investment bank, has predicted that it will drive our economy into a recession, a general decline in economic activity, similar to the one that lasted from December 2007-June 2009. Some experts predict that the economy will shrink 5% in the second quarter after there was zero GDP growth in the first three months of 2020. GDP (gross domestic product) measures the economic output of a nation and represents the value of all services and goods produced within the country over a specific period of time. However, the US Treasury Secretary, Steven Mnuchin, stated on Sunday that the Coronavirus outbreak will most likely not push the US into a recession. Nevertheless, if the US does fall into a recession, it will not only hurt America but also countries that we trade with the most such as China, Mexico, and Canada.
What do you believe the Federal Government can do at this time to stabilize the economy?
If we address the Coronavirus outbreak efficiently, will it help the economy recover sooner, or is it beyond repair?
Once this virus is under control, will people start going back to the office to work or choose to work from home permanently? If they choose to work from home, how will this affect the economy in the longer term?
Source:
https://www.bloomberg.com/news/articles/2020-03-15/goldman-sees-sharp-u-s-contraction-nber-would-label-a-recession
I believe that they have done a few things, so far the congress and the senate passed a relief bill that attempts to take care of families first during this crisis. Giving free testing, paid emergency leave and a few other things. They are also trying to push through an economy stimulus package, 1 Billion dollars worth. They are attempting to repair and do many things in advance to prevent future worries.
ReplyDeleteI believe that the best the Federal Government can do at this time to stabilize the economy is to shell out money to the businesses and industries affected, to help prevent another recession like in 2008. Just hours ago, the Trump administration proposed a $850 billion package in attempt to stabilize the economy, which would help to support airline companies, as well as paid sick leave for those who cannot work. By encouraging social distancing and requiring the appropriate areas to be quarantined, the government will have properly addressed Covid-19, which would slow the spread of the virus and benefit the economy in the long run, by having people return to work quicker, and having more money to spend on other relief efforts because the hospitals would not be as overwhelmed.
ReplyDeleteIf we correctly adress the corona virus outbreak, the economy will suffer for a shorter period of time. I think that the extra precautions that the government is taking is beneficial, but it is should be a top priority for the government to find a way to test people for covid-19 accuratley. Also, social distancing is another beneficial way to slow the spread of the virus.
ReplyDeleteIt's hard to say what the federal government can do, I think slowing the spread of the virus and causing less panic will help, and we can slowly resume our normal lives. I don't think the economy is beyond repair, I think if treated soon enough, the economy will heal over. P time, but the panic of the U.S population needs to stop. After we are given the ok to resume work, people still may be scared to catch the virus and may decide to work home, I definitely think we need to be sure that the virus has been treated and once everyone feels safe they can return to their normal lives
ReplyDeleteThe most important thing for the Government to do at this time to stabilize the economy is show that they have some sort of plan. Give the people of America some sort of hope that things will go back to normal eventually. I think after the virus is under control, life is going to change drastically. People are going to realize how unnecessary many of the things that we do are, and more and more things are going to be online to avoid human contact.
ReplyDeleteOnce the virus is under control, it is hard to believe that people will continue to work at home, as some people don't have the option to or can't focus in that environment/don't have the necessary supplies. If they choose to work form home, it could hurt the economy severely because of the small businesses that are affected across the country.
ReplyDeleteThe government needs to put money directly into the affected peoples hand right now in order to prevent the economy from completely collapsing. If people decide to permanently work from home, then that could have a bad affect on the economy because it would hurt small businesses across the country. Some are already saying that this will be worse than the Great Depression, which was the worst the economy has gone.
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