Covid 19 is an infectious disease caused by a newly discovered coronavirus. Most people will get the virus and recover without going to hospital. The most common symptoms covid 19 are fever, dry cough, and tiredness. This paper will be discussing the effects of covid 19 on the US economy.
One of the effects of covid 19 on the US economy is increased household spending since most people were just at home and not going to work, which led to a decline in retail sales. Due to the lockdown measures put down, some areas like grocery stores, pharmacies, and non-store retailers experienced high demand. In contrast, areas like a clothing store, furniture, food service, drinking places, sporting and hobby centers have experienced a decline in sales.
The other effect of the coronavirus on the US
economy is that industrial production was damaged. The output in the mining and utility sectors went down. This poses a significant challenge to the US because it employs a large percentage of the population.
Due to the covid 19 outbreak, most of the US people were left unemployed, and as a result, the US economy was affected. When people became unemployed, it meant a few expenditures leading to lower outputs and profits. The poor outcomes and profits sign that the economy is operating below its capacity and is inefficient.
Stress on the supply chain is too an effect of covid 19 on the US economy. The supply chain is one of the essential categories of innovation and well paying in the US. The US’s supply chain service has the highest wages and gives the most jobs, and has led to rapid growth in employment and salaries in the last few decades. Due to the covid 19?” many sectors closed, and others had minimal transactions making it hard for the supply chains to have a smooth flow. Most sectors like the manufacturing sectors were closed and hence could not supply products to the dependent industries, and as a result, the US economy was dragged down.
A decrease in government income is too another effect of the coronavirus on the US economy. The US government gets its revenue from the individual taxes of those doing sole proprietorship business, corporate income tax from companies, social insurance tax from insurance bodies, and sale of shares to the public. Due to the covid 19 pandemic, most of the businesses closed, companies closed, resulting in low incomes that led to a weak economy.
Coronavirus mostly affected the Travel industry, Tourism industry, and hospitality industry since they are all dependent on each other, which involved the US’s economy since there were no incomes. The virus outbreak led to the shutdown of cities and bun of air travels in the US, which greatly affected the travel, tourism, and hospitality industries. Covid 19 has resulted in the cancellation of hotels and travel bookings, resulting in revenue loss and unemployment situations, resulting in a loss of revenue to the government and affecting the economy.
Having discussed the above points, I would conclude that covid 19 has negatively impacted the USA economy and could take a long time to bring it back to its normal state.