As the stock market struggles to remain alive and the health of so many residents is getting worse, the economy has taken a serious and inevitable blow. Officials from the Trump Administration have warned the unemployment rate is expected to take a sudden jump up to 20% very soon. Steven Mnuchin, the secretary of the Treasury presented a financial plan that would cost the US at least 1 trillion dollars. Though previously, such a large sum would not have been approved for public aid, no one can avoid the fact that the situation has become very dire. Financial aid action plans are being proposed, giving Americans over $200 billion dollars in payments and these could start as early as April.
Unemployment is expected to be double what it was during the period of the great recession in 2007. The last time unemployment rates were above 19% was during the Great Depression in 1930. During the Great Depression, the unemployment rates were at around 25%.
Many individuals, even those at the professional level, took COVID-19 very lightly when it first arose and saw it as nothing more than a small problem. However, the virus has proven itself to be very deadly, not just to the health of those being infected by it but also to the economy and to society on a whole. Individuals across the world are in lockdown and are being instructed not to leave their homes at any cost. Though the virus originated in China, death tolls are rising across the globe and the virus seems to be spreading at a similar rate in both Europe and now, the United States.
Why are all companies shutting down?
The main reason companies are being forced to shut down is because of the social distancing commands being given to everyone in the community. It is not safe for people to be gathered in one area as this greatly increases the chances of the virus spreading rapidly. Companies are being forced to lay off their workers and close their offices for the safety of everyone.
Major retail stores such as Ikea, and Bed Bath and Beyond have shut down most of their locations in the best interest of helping slow down the spread of COVID-19. The more stores that are closed, the fewer people will go out and, in turn, the virus will not have as many opportunities to spread.
With over 240,000 cases globally, and over 9500 deaths on a global level the virus has surprised everyone and there is a lot of fear regarding both the health of everyone and the economy of the world as well. This unexpected virus has managed to shut down an incredible amount of economic production and social activity at the same time and everyone has taken to their homes to stay safe from being afflicted by it.
Everyone can only hope that this extreme-measures social distancing will help flatten the curve and speed up the time for the virus to die out. How much time it will take exactly and how momentous the damage to the economy will be is still up for debate, all anyone can do is try and follow protocol and wait out this microbial storm from the safety of their own homes.