As a result of the coronavirus outbreak, the current and future state of the economy is uncertain. Already, the government’s call to action for United States citizens to stay home has taken its toll on businesses everywhere. From the closing of stores to restaurants’ delivery only option, these unprecedented actions aim to slow the spread of the virus. Consequently, the government began putting measures into place to mitigate the harm to the economy.
Julia Palomba, a 19 year-old biology freshman, said, “I live in Palm Beach Gardens, Florida, and the coronavirus has been seriously affecting the businesses in my area. The roads are empty and trips to Publix are somber. I walked through the store at a large distance from other shoppers, who all wear masks and gloves. The shelves that were once stocked with disinfectant wipes, paper towels and toilet paper are completely empty. It is such a strange environment.”
On March 27, 2020, President Donald Trump signed a stimulus package after it was passed by Congress. The package is worth $2 trillion, making it the “largest emergency aid package in U.S. history.” The economic stimulus will send $1,200 to taxpayers with incomes of $75,000 or less. However, a sum of money can be received from the government with incomes up to $99,000. In addition, another $500 may be received per child in a household earning an income within this criteria. According to the Treasury Department and the IRS, these payments will be disbursed within the next three weeks.
Palomba said, “I believe stimulus checks are going to be incredibly helpful for those who are in need. This pandemic has completely changed everyone’s lives. The new normal is difficult for many, especially those who have recently been put out of work and do not have a steady income. These stimulus checks would really assist those in need, and I fully support it.”
Furthermore, unemployment benefits will increase under the stimulus package, and it will now include jobs like freelancers and gig workers. In terms of assisting small businesses, the stimulus package will provide loans until June 30 as long as the businesses do not lay off their employees. If the business continues to pay employees until the crisis’ end, the loan is forgivable. The bill will also provide $100 billion toward hospitals, as well as additional funds for health care equipment.
The coronavirus’ effects on the economy revolves around the concept of consumption. Without citizens spending money on transportation, recreation, and food services, many industries are at risk, and the revenue needed for everyday economical function is no longer supplied.
Emma Schrago, a 20 year-old psychology sophomore, said, “The virus is proving to be detrimental to the economy. Stock values have been going down, and many businesses are doing worse than usual. But eventually, when the pandemic is over, stocks will return to normal and businesses will start doing better. I think this depends on how we all respond to the virus. The quicker we can slow its spread, the quicker stock values and business profitability will go back to normal.”
On March 31, 2020, President Trump told the people of the United States that the next two weeks would be difficult, projecting that 100,000 to 240,000 will die of the virus. Trump also extended the enactment of social distancing guidelines until April 30; the previous date was April 12.
Schrago said, “I live in Orlando. All nonessential businesses were shut down recently. Essential businesses that are still open have strict regulations regarding patron contact, especially restaurants. Most restaurants are taking orders online and use contactless pick up to prevent the spread of the virus. From what I have read, I think stimulus checks will help relatively lower-income earners cover basic costs of living. Ultimately, containing the virus, which is controlled by the decisions and actions of individuals, is more helpful to the economy than any sort of stimulus the government can provide.”
Despite the threat the coronavirus poses to the economy and businesses everywhere, the health of those throughout the nation must be prioritized. Without first controlling the spread of the virus, the nation’s officials cannot place their focus on correcting the virus’ financial effects.