Paraphrase of Article
The world could not avoid the spread of the coronavirus disease in 2020, accompanied by the global economic recession. The analytical institutions expected the worst scenario; however, experts agree that financial recovery will largely depend on vaccines’ effectiveness and easing the lockdown measures. It is predicted that 2022 will be characterized by the growth of countries’ gross domestic output (GDO), exceeding the figures before 2020. However, some forecasts claim that the GDO increase will be about 7% in 2021.
Society will face the long-term consequence of the COVID-19 pandemic. These include shuttered businesses, high rates of unemployment and inflation. The United States government provides stimulus checks of $600 to citizens, extending unemployment benefits for well above ten million people. Consumers start visiting restaurants and stores due to the decrease in the number of infected active cases and the decline in hospitalization. The relief payments are rising; therefore, people are not afraid of spending money on cars, clothing, appliances and furniture. Cities and states ease restrictions; consequently, the revenue in the service industry is rising. 2021 is better than the previous year because of consumer spending and vaccine rollout, contributing to collective immunity.
There is also a positive trend in unemployment rates as most jobs are expected to claw back 2021. Still, about four million people stay without work while their professional skills erode. The pandemic has primarily affected the service sector; for instance, approximately 100 thousand restaurants are closed forever, making unemployed restaurant workers train for a new occupation, namely technology or e-commerce. Moreover, federal assistance in job creation can benefit the situation in general. There is also the inflation risk due to rising wages to hire employees. The Federal Reserve Board (FED) promised to maintain its rate near zero. Forecasts claim that inflation will grow to 2% and reduce after most people come back to work. FED relies on discounts in online shopping and optimistic consumers’ expectations.
Impacts of Article
Introduction
The COVID-19 pandemic outbreak has multiple consequences; for instance, the global economy has faced considerable recession over the last few decades. The coronavirus has had a remarkable effect on the US economy. As the virus quickly crossed borders, this factor has revealed a weak side of globalization. Since the US did not take adequate steps to suppress the disease promptly, the nation experienced a high death rate and a severe recession. The measures taken to control the coronavirus transmission were considered useless in some regions, namely metropolitan areas such as New York.
The virus outbreak has claimed the lives of more than two million people. It also plunged vast numbers of families into poverty, exacerbated income inequality, disrupted international trade and paralyzed the global economy. At present, after a spike in coronavirus cases was addressed by urgent emergency action, the economy and social life demand carefully calibrated efforts to deal with long-term outcomes. The unemployment rate is marked by a record high level, primarily due to lockdown and restrictive measures present in some states. Restaurants and retail outlets are closed, along with other businesses that rely on the active consumer flow.
Nevertheless, even though the nation fights with the COVID-19 constraints, the US economy is in a superior position to recover from severe crises than other economies. The average American population is younger and more mobile compared to the rest of the world. Labor market constraints are relatively moderate, which promotes a rapid redeployment of the workforce. Hence, these days, there are positive economic and social trends in society with optimistic forecasts for the near future.
Social Perspective
The social sphere as the nation’s economy has been affected the most. These days, it needs to be restored as citizens demand the revival of all social activity types, which people lack at present. Although, after the end of the Covid-19 pandemic, the world will need several years to renew its standard of living. Furthermore, the pandemic and restriction measures’ principal consequence was the loss of a created perception of the future. For many people, the absence of control over life has resulted in a tremendous experience of vulnerability, fragility, and freedom loss.
Notwithstanding states and cities gradually easing restrictive measures, COVID-19 has dramatically affected people’s daily emotional and mental health, increasing stress levels from lockdowns, fear of getting infected, or continued financial pressure. Reducing people-to-people contact can have long-term consequences for adolescents. During this period of a person’s life, their brain development, behavior and mental health may be affected. For most people, attitude towards the SARS-CoV-2 virus and the requirement to comply with prescribed precautions complicates creating new relationships and maintaining established ones. Some of these lockdown issues can last for months or even years. However, self-isolation due to the COVID-19 makes people more emotional and open in their expressions of feelings.
Concerning changes in consumer behavior, a redefinition of value has begun. It resulted in a sharp decline in demand for specific categories of goods or services and increased demand for others. The progressive removal of restrictions and opening of restaurants, bars, cinema theaters and gyms is causing a slow increase in spendings on outdoor activities. Consumers tend to think carefully about visiting a fitness center or going to the movies. They have already used to replace it with self-directed online workouts and streaming video services.
Political Perspective
The pandemic, which could have supposedly rallied the nation, instead contributed to growing political polarization. The virus outbreak and the economic crisis were accompanied by a tense period of elections in the United States’ political life. Party affiliation can be considered one of the strongest predictors of behavior and attitudes towards Covid-19. The party program can be a more powerful aspect impacting public opinion than demographic characteristics or infection rates. The response of Americans to the coronavirus pandemic is strictly dependent on their political preferences; Democrats are used to being more concerned compared to Republicans. The state’s orientation explains public health policies, particularly the timing and duration of lockdowns, bans on public meetings, and mandatory wearing masks.
Therefore, the Covid-19 pandemic outbreak has split the country’s political life. In the US, the risk of protests and anti-government demonstrations increases. 2020 is characterized by a threat of a deep state crisis that might adversely affect the government. Such situations usually occur within two years after a major epidemic. As the number of infection cases decreases, civil disturbances may resume. The critical point for voters will be determined by the quality of life and their financial state. The risk becomes more critical when a crisis exacerbates pre-existing issues such as lack of trust in institutional structures, poor governance, poverty and inequality. In some developed countries, including the US, most of the profits from globalization go to a small group involved in new industries, finance and trade, and in 2020 this aspect caused a powerful political protest.
Financial Perspective
The coronavirus has taught people to enjoy small details of life, supporting their community and local producers. Consumers have begun to change their shopping priorities; for example, nowadays, people are buying more personal care and cleaning products and canned and fresh food. At the same time, people buy less clothing, beauty products, and electronics. Many changes in consumer behavior caused by the pandemic’s impact will persist over the long run. Besides, the problem is forcing people to take their health and the ecological footprint of shopping seriously.
Consumers have amassed large sums of money due to coronavirus restrictions. This is recognized as high potential for recovery from a pandemic recession. As long as there are government subsidies, citizens will not abandon this behavior pattern. A large portion of the additional savings comes from wealthier households, while the poor have undergone a decline in their income. When the restrictions are eased, citizens will return to shops, restaurants, entertainment establishments, start traveling and make expensive purchases.
Another question arises whether consumers will spend their savings. People may choose to keep their money because of the potential risks, for instance, the emergence of a new pandemic, the slow recovery of the labor market and its volatility. They can also stay concerned to have an emergency fund in case of future crises. Although cafes and restaurants are open in the foreseeable future, not everyone can take advantage of these benefits, even with all the rules’ observance. A significant decrease in revenue and the need to revise the spending system are among the most unpleasant and apparent consequences.
Economic Perspective
The financial crisis has strengthened the already emerging trends and exposed existing weaknesses. Working from home is not feasible for the vast majority of Americans. Only the financial sector, business consultants and information service employees can work remotely, whereas, in such industries as catering or agriculture, remote work is almost impossible. As a result, the number of working poverty has increased, as the decline in economic activity has considerably affected citizens close to the income poverty line. The pandemic’s circumstances caused a sharp drop in the US employment rate.
In 2021, reducing unemployment is a positive tendency, but it is not recommended to exclude a new enterprise closure due to the expected subsequent waves of coronavirus infections. Several economic sectors have been hit by the pandemic, especially lockdowns and restrictions. These include foreign trade, transportation, tourism, hotels and restaurants, offline services and entertainment. Nevertheless, some industries have benefited, for example, local e-commerce, especially groceries and ready-to-eat food, online entertainment, and telemedicine.
The US authorities quickly initiated stimulating measures to stabilize the economy, introduced social distancing, which had a favorable effect. Ultimately, this should mitigate the impact of the pandemic and accelerate the restoration of normal economic life. For instance, such spheres as tourism, air travel, service industry and entertainment, characterized by close contacts and public gatherings, require significant resources and efforts to reach the same level in 2019. One of the economic consequences is the rise in inflation. Hence, the US’s current monetary policy can diminish this threat, which can be rapid and challenging to control. The likelihood of unmanageable inflation remains low, but investors need to monitor the associated risks. The economic impact will persist for a long time, especially among the poorest and most vulnerable social groups. In connection with the trend towards recovery, small business and consumer demand will become the leading economic development drivers. The world is being rebuilt towards greater digitalization and the transfer of many processes online.
Conclusion and Recommendations
Conclusion
To sum up, the devastating socioeconomic impact of the COVID-19 pandemic will be acutely felt in the coming years worldwide. Reliable and sustainable recovery of the global economy is possible if investments are made following the current difficult situation in the economic and social spheres. The past year has once again revealed the ability of economies to adapt to any difficulties. Consumption of goods has already recovered to pre-crisis levels, primarily due to the business e-commerce transformation. The upturn is projected to resume in 2021, but the recovery pace remains highly uncertain and depends on the duration of the pandemic, vaccine availability, and improvement of trade and investment flow.
If the next waves of the COVID-19 occur, it will require the imposition of restrictions for an extended period, leading to increased geopolitical tensions. Therefore, the progress may be slower than expected. Government plays an essential role in this process; the US president signed an economic aid package that provides direct, one-off payments for most Americans and tax breaks for millions of families. These amounts will minister rebuilding America’s economy and support employees and the middle class. Additionally, the rise in the unemployment rate and the decline in disposable income significantly modified consumer behavior. Lack of confidence, instability, the desire to save money, restrictions on movement, the widespread shift to remote work contributed to a change in the values ​​and behavior of consumers.
Recommendations
At present, it seems that the consequences of the pandemic are diminishing, while humanity is returning to its usual way of life. However, uncertainty, stress, and anxiety due to unexpected coronavirus threats may persist; consequently, it is recommended to follow specific measures to maintain physical and mental health. It helps redefine the balance of life and work since it is generally accepted that the latter is a priority in the USA; thus, people can begin to enjoy everyday life. Moreover, my recommendations include careful planning of the living accommodation, regarding the continuing trend of working remotely. Home should become more comfortable, suitable for performing different functions; family members should not interfere with each other’s work, study and household chores.
The COVID-19 pandemic demonstrates that the demand for multi-skilled specialists will grow. I recommend developing professionally, as the number of specialists who understand biology and artificial intelligence is insufficient. Soft skills will be a remarkable asset in the future world. Furthermore, the sharp drop in citizens’ real incomes has led to people becoming more mindful of their savings. It is useful to obtain financial literacy as the crisis has taught us to spend less and consciously consume, save and invest surplus, form an emergency fund in case of a reduction in income. It is vital for those who have lost their jobs to adapt as soon as possible, considering a career switch. Flexibility and the ability to learn are essential qualities in the modern world that will help quickly find oneself and livelihood.
References
Davidson, P. (2021). ‘Remarkable outcome’: Big gains are likely for economy this year even as COVID-19 damage lingers.USA Today. Web.