Coronavirus has impacted the economy in many ways besides the initial downturn of the stock market. In the subsequent weeks, many were laid off, businesses shut their doors and nonessential spending drastically slowed. While many lives are in jeopardy, others’ livelihoods face similar fates. Those filing for unemployment skyrocketed even in the earlier stages of COVID-19; local businesses, often without the safety nets that corporate companies enjoy, closed their doors -some forever.
For the foreseeable future, the economy will continue to suffer, even after lockdown measures are lifted. This is partly because the flow of income and expenditures will take a considerable amount of time to return to their usual pace.
Social Studies teacher Mr. Schreiber has seen major changes to the economy in the wake of the pandemic.
“Economic growth has slowed down significantly because so many companies had to suddenly shut their doors. This has a ripple effect throughout the economy affecting a majority of businesses and industries throughout not only our economy but the entire global economy. There have been significant job losses with data showing that over 50% of Americans say they or a family member have been financially impacted. These types of job losses haven’t been seen since the great recession of 2008,” says Schreiber.
There is one potential saving grace to the economy- the sympathy and willingness of individuals to invest in the wellbeing of local businesses. Many chain businesses have savings and a corporate office to help bail them out of financial troubles. While any flow of cash into the economy is beneficial, this is especially crucial to locally owned businesses.
Rachel A., ’20, recognizes how her local economy is being impacted.
“Small businesses are going to take a big hit from losing their business during this time, taking out and doing deliveries are a great way to support local mom and pops that you love so they’ll still be there after all of this,” Rachel says.
Unfortunately, the economy is in a state of distress and will suffer due to the current circumstances. However, continuing to spend money and support local businesses will help.
“Obviously the challenge here is the feasibility to actually get to local businesses. It is much easier to just order from Amazon, but people can make the effort to buy from local businesses,” says Schreiber.
A quick google search will yield information on the status of most local businesses, whether they are open for delivery or curbside pickup and more information can be easily found on their websites or social media accounts.
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