How COVID-19 Has Affected the Economy

How COVID-19 Has Affected the Economy
  • Opening Intro -

    COVID-19 began earlier this year with roots overseas before finding its way to America.

    From the moment the country shut down and the lockdowns, restrictions, and bans began, the US economy was changed forever. What a year it's been since.

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While so much is still unknown, and nobody knows what the future holds or when life may return to a different standard of normal, there are certain things we can acknowledge about how our lives now look.

One matter to focus on is financials. Putting all politics and opinions aside, here are facts on how COVID-19 has affected the economy in general, and the areas of our lives its ramifications have reached to impact us today.

Unemployment: the Labor Market

Millions upon millions of Americans either lost their jobs or were temporarily laid off during this year. The unemployment rate hit an all-time millennium high of 14.7%, the highest since the WWII era.

Within a month’s time of lockdown, over 20 million Americans found themselves jobless. The rate has since fallen, but many are still left furloughed.

Earlier during this economic recession, a wide majority of those not working described themselves as temporarily out work. Many months later, those numbers have turned over into descriptions of permanent layoffs.

The virus has continued to change the workforce and the labor market by decreasing labor supply and being unable to keep up with the demand for employment.

The number of Americans without jobs will continue to be higher until the pandemic is resolved or contained. Productive capacity is hindered until further notice of improvement and where new opportunities will come from.

A Consumer’s Market

With a wide, far-reaching buyer’s market, consumerism is a major aspect of our modern world. So how COVID-19 has affected the economy of consumers?

Let’s answer this question with another question: how can an economy expect to flourish with so many sidelined consumers? How can it grow when a majority are waiting to join the game of personal finance again?

Without proper income, Americans are falling behind on rent, bills, and other necessities of life in a pandemic-induced poverty surge.

Many Americans cannot afford to go out and spend the money they used to and are instead just trying to get by day by day. Restaurants, movie theaters, and other stores that once gained large revenues are hurting as money spending is down—but all is not lost.

In a country where the want for more, more, more has changed, those in the seller’s market have continued to evolve and adapt in order to appease consumers’ wants and needs during this difficult time.

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Investment and Money Lending Market

While general financial circumstances have changed for the worse, some others may be constantly changing for the better. COVID-19 has greatly affected investing as a whole, as well as hard money lenders by providing plain old opportunity. While some Americans’ lives haven’t changed as greatly as others, those looking to invest or borrow money may ricochet between certainty and doubt.

This pandemic has given a new opportunity for private lenders to examine their own operations and put in place improvements to lift up customer and client experience.

For those looking to invest, or for those looking for loans, lenders have adapted to make their processes and technologies for borrowers increasingly efficient. Additionally, they’ve set more appealing terms.

Image Credit: how COVID-19 has affected the economy by Pixabay

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Consumer Tips reference:

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