Written by: Hailey Boelter-Eberhardt
As many have heard, the growing pandemic of the corona virus is causing many countries to either lockdown or shut down entirely, to help cease the increasing numbers of those infected. These shutdowns are causing a whirlwind of economic and social concerns. For many teenagers, it is causing a disruption in school life, work life, and overall social life, as the CDC is stating the need for social distancing. With this social distancing, it is best that all stay in their homes and only to go out when it is absolutely necessary. Along with that, setting standards of how far apart you should be from one another, how many should be in a space at a time, etc to lessen the curve of those infected. Many seem to not be taking this as serious as the government is intailing, but this pandemic isn’t only affecting the world health-wise and social-wise, but many economic concerns. A huge one being, as many businesses shut down, the unemployment rate skyrockets.
The United States, before this entire pandemic, had an unemployment rate of under 4%, holding this low number for about 2 years. According to USnews, President Trump’s administration warns those that the unemployment rate could reach 20%. This seems unheard of, but if you look into how many businesses around you are closing. There are many working from home, however some don’t have that luxury. This could include restaurant waiters, servers, cooks, department stores, malls, movie theaters workers, hotel workers, etc. These workers are not getting paid, as they cannot work, physically. According to the Washington Post, Pebblebrook Hotel Union laid off 4,000 people, alone. This surge of unemployment is causing many, who are jobless to file for unemployment benefits. This number, according to the Washington Post, has reached 281,000 people and counting has filed. That is up 33% compared to previous weeks.
However, the United States government and state governments are composing and implementing plans to expand the unemployment benefits to help those unemployed due to the coronavirus, still be able to have the necessities they need to go on in life, with this new lifestyle.Donald Trump has signed a $100 billion law to the coronavirus relief package. This package gives free testing, expanded pay, and unemployment insurance to those impacted by the coronavirus. According to CNBC, states are being given more flexibility in their unemployment standards to those who meet these requirements, causing it to be more open to those impacted by the pandemic.
Overall, the entire world is in a state of panic and uncertainty. Our lives have been flipped into something we never thought would occur. Everything seems to be falling apart at the seams. Not only is our health in question, but the entire economic system is in question. While businesses continue to close, the unemployment rate continues to increase steadily. There are many plans in place to help those unemployed, however with businesses closing, the economy is continuing to decrease. The United States is based on its economy being strong and with many not having the money or ability to go out spending, the economy going into a recession, but the bigger concern is when we get out of this pandemic, are we going to be able to get back into the groove or society, but most importantly, the economic growth we once had.
Works Cited
Caldwell, Leigh Ann, and Rebecca Shabad. “Coronavirus: Trump Administration Warns of 20 Percent Unemployment Rate.” NBCNews.com, NBCUniversal News Group, 18 Mar. 2020, www.nbcnews.com/politics/congress/coronavirus-trump-administration-warns-20-percent-unemployment-rate-n1162601.
Liu, Jennifer. “How States Are Expanding Unemployment Eligibility to Include More People Impacted by Coronavirus.” CNBC, CNBC, 20 Mar. 2020, www.cnbc.com/2020/03/20/coronavirus-pandemic-some-states-are-making-more-people-eligible-for-unemployment.html.
“United States Unemployment Rate1948-2020 Data: 2021-2022 Forecast: Calendar.” United States Unemployment Rate | 1948-2020 Data | 2021-2022 Forecast | Calendar, tradingeconomics.com/united-states/unemployment-rate.
As a teenager, I don't experience the economic impacts at such a level of most other people in the world, however I still think this is important for everyone to note. I personally have been affected by not being able to go into work during this time, however this isn't an end all be all for me. Even with talking to some of my managers at work, I know people who are filing for unemployment because they will not have an income for possibly a month, even longer.
ReplyDeleteIt is important to remember that recessions are a natural part of the business cycle. While we think the world is falling apart now there were similar concerns in 2008 and other recessions. This recession, while in the short run will increase cyclical unemployment, will not last. That is because the main force in causing the recession is all the uncertainty that surrounds the topic. I guarantee you, once we have a cure that can be used for the elderly and the Immunol compromised demographics there will be no more fear or uncertainty with the coronavirus, and we will see the economy snap back.
ReplyDeleteI agree we have to remember that the recessions are a natural part of the business cycle. I am surprise that trump says the unemployment rate could reach 20%.
ReplyDeleteThese troubling times certainly are bad for the economy. I wasn't aware that unemployment could possibly reach 20% because of the virus but that does seem realistic considering how many businesses could be considered non essential and have to shut down, in addition to having lowered revenue because of the panic. I've seen posts online urging people to support small and local businesses but that is becoming harder to do. Hopefully we are able to recover from this slump and ascend to even greater heights.
ReplyDeleteI think another thing to consider is that the United States has been sitting in an inflationary gap for quite some time and for the people who had the opportunity, did they save any money, knowing the economy would eventually swing the other way? Obviously nobody knows what industries are going to be affected but with the other economic crisis of student loan debt looming over many, adding unemployment is only gonna make things worse.
ReplyDeleteI think we're following pretty closely to the 2008 recession. The loans that individuals and companies have taken on simply cannot be paid with the absence of jobs and a flow of money throughout the economy due to this Global Pandemic. Loans were seen as a good thing for companies to take on. Showing that companies were building up fast and that business ventures were highly profitable in that area with the business. But companies that have taken these loans can barely keep up with a monthly repayment plan. Especially since this pandemic is going to be here for a while. Similar to the Recession, many have lost their entire savings. My aunt, invested around 5-10% of her paycheck into a 401k. But as a result of the stock market taking a steep downturn, she lost almost $75,000. Anyways I'm surprised that the unemployment is predicted to reach 20% and good job.
ReplyDeleteThis is John Maki
DeleteAlthough these circumstances are challenging for the economy, an economic recession is only natural is the course of our history. It is extremely important for us a nation to come together and avoid mass chaos. Everyone is doing the best they can, and things such as a recession are quite frankly out of our control. This being said, we have been here before and bounced back to a stronger and a more well rounded community afterwards.
ReplyDelete-Ellie A
A 20% unemployment rate is UNHEARD of (I mean, unheard of to me at least). I would really like to compare this to data to when other outbreaks have occurred. I know that the impacts of a disease/virus has never, ever been so extreme before, but is there anything else we can compare this to? Maybe in countries where Ebola was prevalent- how were their economies impacted? How did they react, what actions did their government take in order to keep the people calm and the economy from flat-lining. This was a very informative post- I hope the data compiled in the future doesn't reach the projections you mentioned, but all we can do is hope.
ReplyDelete