• Mariko Mita

How has COVID-19 affected the USA economy?

Everyone around the globe currently has been affected by Covid-19. Covid-19 is an infectious disease that results in illness in the respiratory system. The total worldwide Covid-19 cases, at the time of writing, has added up to an astonishing 148 million. The countless numbers of direct impacts caused by the virus, such as the death of loved ones, loss of jobs, and economic and social disruption have caused tens of millions of people to fall at risk of extreme poverty. Covid-19 has led the fossil fuel industries and transport industries to become less attractive, while small businesses are plagued with risk.

Even with the raw emotional loss from the pandemic, it has caused incredible damage to worldwide economies. This article shall focus on the impact of the pandemic on the US economy. The economic impact is mathematically calculated by the past historical trends and the current trends occurring. The activity of the economy can be calculated by an immense number of factors such as employment rate, percentage of unemployment insurance claims, demand for luxury items, spending, and more. The predicted number of people unemployed with respect to the past historical trends was 61.3% (in employment to population ratio) but then it turned out to be 51.3% in April of 2020. By July 2020, 30.2 million Americans were unemployed and received unemployment checks.

Covid-19 has landed the largest blow to the economy since the Great Depression. The country's GDP (Gross Domestic Product) has fallen 32.9% annually. Every industry in the American market has been struggling in different ways. The traveling industry has taken a toll, with reduced demand for hotels and airplanes. Airlines for America called for a $50 billion subsidy, including $4 billion for their cargo service. Delta Airlines has cut down employees by 40%. Other examples of harshly hit industries include the seafood industry, restaurant industry, meat industry, and the healthcare industry. All of these have struggled to hold on without a subsidy.

The fundamentals about the struggles of the different industries in America reach out globally. There are more specifics into how each industry has been impacted and how they are fighting to survive and how the government is trying to step in and help.