More than a year after the first case of Covid-19 was found in the United States and the economy came to a standstill, experts believe that the economy is nearing pre-pandemic levels. Getting the economy back in gear has proven to be a difficult challenge — but, three stimulus deals later, businesses and individuals should expect their financial situations to improve greatly in the coming months.
The Beginning of the Economic Collapse
The Covid-19 pandemic created unprecedented economic turmoil across the globe. In the United States alone, the initial response to the pandemic caused nearly a 32 percent decrease in the GDP.
Summer brought some relief with a 33.4 percent increase to GDP, but the virus returned in the fall and once again brought economic activity to a halt. As the pandemic continued to surge through winter, economic activity continued to decline.
The economic downfall of the United States came as a response to failed attempts to contain the spread of Covid-19. As government officials continued to ignore the danger that the virus posed, the country’s economy suffered as the virus spread unchecked across the United States.
Despite the continuous decline in GDP, experts believe that the U.S. economy is operating at 85 percent of its pre-pandemic strength and is well on its way to a full recovery. The road to recovery has been long and difficult — but began to take shape following the 2020 election.
After the passage of Joe Biden’s American Rescue Plan, the economy is expected to flourish as money flows into the pockets of those most impacted by Covid-19. The influx of spending money through stimulus checks and federal unemployment insurance benefits will allow people to resume normal spending habits and provide revenue to struggling small businesses and major retailers.
Money from Joe Biden’s stimulus plan is also expected to directly help small businesses stay afloat as the economy continues to make its recovery.
How Does the Rest of the World Compare?
Unlike in many countries around the world, the United States’ initial response to Covid-19 was too little, too late. While the nation is making significant gains today, it still has a long way to go when compared to other countries around the world.
In particular, nations like New Zealand and Australia serve as examples of an appropriate response to Covid-19. These countries took swift action to contain the spread of Covid-19 and provided immediate economic relief to everyone who was temporarily out of work.
The swift responses paid off, and the two countries are nearly completely free of Covid-19 today. While it may be too late for the United States to change its response to the pandemic, there are examples to follow that can further stimulate recovery and can be used in the future.
Ultimately, with effective leadership and adequate federal aid, the United States is well on its way to a complete recovery from the Covid-19 Pandemic.