Covid-19 has disrupted almost every aspect of our lives and the US economy has been no stranger to these massive shifts, and people and businesses have been affected and will continue to be hit hard with it. The Coronavirus economy is far from normal, and meanwhile, about 30 million Americans are jobless right now, and a large part of them are not included as recipients in the Pandemic Unemployment Assistance program. If you are one of those with their finances being affected by this crisis, consider hiring services that have already been reviewed like the ones offered by MaxiFi Planner and others at this finance companies reviews site. Even though in times of crisis the last thing we want is to spend more money, it is worthwhile if this money is spent to take care of your assets.
Recently, the stock market was sent soaring when news came out about the preliminary results of the effectiveness of the Moderna vaccine and similar results from Pfizer and BioNTech, which helped with the long-term outlook of the world economy. But positive vaccine news and the stock market have not managed to bring sufficient confidence to households across America. Plus, having had over 13 million cases in total, plenty of states and local authorities have issued restrictions that make it more difficult for the economy to recover, especially in the absence of support to many citizens from the government.
But, even though the pandemic and the lockdowns created a lot of fear worldwide of a systemic economic and societal breakdown, and it initially pushed economic activity to the lowest of lows, after the initial shock the U.S. and worldwide economy has been stronger and quicker than initially thought. Which has created certain distrust among people who feel this upturn will not last very long, since we are just starting to feel the first economic effects of the pandemic, but the long-term effects of exhaustion from this situation have not been felt yet.
Even so, there has been plenty of positive economic news and economic experts are still trying to figure out why this difference between expectations and reality. For example, while unemployment is still very high, it fell much sooner than expected. By September unemployment levels were lower than what was expected to be by the end of 2021, and housing also showed to be very resilient. Other parts of the U.S. economy have almost returned to normal activity and economic growth has been at really high levels.
Even though the shock of the Covid crisis was and has been brutal, it seems it is still preferable to the financial crisis from the last two recessions of 2001 and 2008, because it doesn’t come with the difficulty of the overhang of excessive investment that was at the heart of those crises. Of course, we are yet to see whether the shock of this crisis turns into a more systemic crisis. But while the good news doesn’t indicate that the U.S. economy is healthy or has recovered, it still shows that it has managed to recover in a surprisingly positive way and leaves hope for the future.