The Coronavirus pandemic has made life hard for every country in the world. The damages of the pandemic are of both economical and social character. But for the US, things look very different than the rest of the countries.
One of the first areas of impact was the stock markets. Nearly every company in the United States experienced huge shifts in stock prices. The impact of these changes resulted in hindering the economic growth of the country.
Since the companies weren’t making any profit, their employees were the first ones to be let go. It’s safe to say that a lot of people lost their jobs due to the lockdowns, and the United States was probably impacted the most out of any country.
While this is a summary of the economic impact of the Coronavirus in the US, we are going to expand it further by detailing everything there is to is.
People Losing Their Jobs
One of President Trump’s biggest allies was the strong, stable, and growing economy. Now that the economy is rapidly changed, for the worse, people are losing their jobs left, right, and center.
From April to June, the US experienced a record rise in unemployment. In a couple of weeks from April to June, the US recorded almost 7 million unemployment claims per week.
Currently, there are more than 31 million people without a job in the United States, but President Trump wants to change that.
President Trump looks to reopen the economy by reopening cities and resuming life. Experts advise against this while others are strong advocates for it.
Regardless of how you look at it, people losing jobs is never good for the economy. And regardless of your views, life has to resume at some point.
Oil Prices Crash Down
Oil is arguably the US’s most reliable asset. The US is the biggest producer of oil out of any country in the world, comfortably surpassing Saudi Arabia.
However, due to the Coronavirus lockdowns, the demand for oil became none existent. Since people stayed at home there was no need for it, and do believe that the prices were affected because of that.
The Coronavirus was a major player in that, but so was the pointless and needless war between Opec and Russian-based oil-producing companies. The price for oil hit a record 18-year low a few weeks ago at $20 a barrel.
However, in the United States, prices for oil went -$37 per barrel. What this means is that, in theory, the producers would pay you $37 just to take the barrel.
This was the first time the price of oil would go negative in history. While prices are beginning to stabilize now, the needless production of oil was initially the reason why prices went negative.
Is It A Recession Year?
The economy will grow and businesses will open soon. All of this points out the making of new jobs all across the United States.
But even with that, the International Monetary Fund calculates and predicts that countries from all over the world will have their GDP lowered by almost 4%.
While some industries will see huge advancements, others are predicted to enter a recession. If we thought 2024 wasn’t going to get any worse, then think again as many experts predict that people will still be jobless in many key industries.
For those that are likely going to get impact by this, Scott Cooper Miami has put together a comprehensive guide on the subject of unemployment and unemployment benefits so make sure to read it.
The IMF predicts the worst recession year ever since the 30s.
Technological Impacts
The coronavirus pandemic impacts all aspects of life. Some are impacted negatively, while others not so much. One area or industry that has seen massive rises ever since the lockdowns is the technology industry.
Since everyone is staying at home, and likely working from home, businesses have resulted in video calls as an effective means of in-house communication.
Out of every video communication software that exists, Zoom has proven to be the most effective one. And while there were safety concerns regarding the usage of Zoom, it is completely safe so long no government uses it for their communications needs.
Zoom stock share prices have grown exponentially since January 2024. In the following months, Zoom is currently sitting at a rise of 135%. Compared to Amazon and Netflix, Zoom’s stocks have risen almost 5 times.
This all has to do with the demand for video communications software, more so than the demand for home streaming entertainment.
Even with all that, both Netflix and Amazon are currently at an all-time high in regards to stock prices.
Travel Industry Impacted the Most
It’s safe to say that no one travels nor can they travel. Almost every country was on lockdown a few weeks ago. Most countries had their borders shut down for travel, and that had a huge negative impact on the travel industry.
This was a necessary decision made by world governments, including the US, in hopes to try and contain the spread of the virus. However, recent new waves across hundreds of countries might force governments to keep their borders closed for specific countries throughout the summer.
Specifically in the United States, President Donald Trump signed an executive order that banned travelers from European airports. This means that everyone coming through Europe is banned to enter the United States.
Since most travelers from Europe travel for vacation purposes, the industry has been the one suffering the most. The total number of flights in April has shrieked almost four times.
In the US, air travel pollution has significantly lowered over the past few months. This has been the case throughout the world, as ESA (European Space Agency) registered very little air pollution from March to June.
All in all, the United States has been one of the most heavily impacted countries in the world. The economic damages are like no other and the US is likely to recover in the following months.
