The economy is at risk of plummeting post-COVID-19. Millions of people became unemployed for the majority of 2020, while hundreds of thousands of businesses had to close down because of the multitude of restrictions implemented by the government. A portion of the population missed paying rent after a few months spent in lockdown. Millions more went hungry and underwent debt because of the massive layoffs pushed by necessity. Businesses had no income. Hence, they had to let go of employees and shut down multiple departments because everyone was uncertain about when the pandemic would end. Uncertainty crippled business’ pockets.
Fortunately, the vaccine rollout has been successful in most states in the United States. As of the time of writing, 125 million people in the United States have been fully vaccinated. Along with the vaccination process comes the new hope for the economy to rise again. The movement of the public will breathe new life back into the economy. Through domestic spending, businesses will slowly open up. When businesses grow, the rate of employment will also grow as well.
Recessions are caused by a wide array of factors coming from different areas of society. Because COVID-19 has affected almost all sectors of society, there is no telling where we should start. For the economy to recover, it has to be a collective effort of all members of the community and the government. How will our economy recover from the pandemic of 2020?
Governmental incentives play a huge role in the economy’s recovery. The road to recovery is full of pros and cons. Sacrifices have to be made. Unfortunately, for any democratic state, the private citizenry has the freedom not to make that sacrifice. The government cannot directly curb the way private citizens do business. If the government starts dictating, some international investors might think twice about investing in the country. In short, only the government can make the sacrifice with regard to incentivizing certain areas of business.
Decreasing Interest Rates
Ordering a blanket lowering of interest rates for all banks will encourage fiscal movement. Borrowing and loaning is the hidden backbone of all capitalist ventures. Without loans, businessmen would strike out in getting capital for their planned ventures. Now is the perfect time to decrease the interest rates for banks. Unlike the public, governments can actually impose a lowering of the interest rates for certain loans. The public can get the best mortgage prices from banks and reputable lending companies on their student loans, car loans, and home mortgage loans. Doing so will stimulate revenue for banks, thus increasing the earnings the government can get through taxes.
It goes without saying that vaccinating everyone will be key in picking the economy back up. The absence of the market’s fear of the coronavirus will encourage everyone to go back out, work, and spend. There are a fortunate number of people who are still able to generate income and revenue even while locked up inside their own homes. However, many blue-collar workers remain unemployed. By vaccinating everyone, people can go out more safely. Vaccination will encourage movement among the market, encouraging selling and spending.
Healthcare is a touchy subject among average Americans. Everyone wants healthcare, but different groups have different methods in mind regarding how they want it done on a general scale. There is no denying that everyone needs healthcare. Currently, healthcare is not entirely free in America. You need to spend thousands of dollars on insurance before you can get covered. Even when you do get covered, some insurance companies make you go through hoops before you can make a claim. A healthy populace also means a healthy economy. By instituting a better healthcare system for all, you allow the citizenry to spend their hard-earned money somewhere else rather than paying for insurance. Spreading the spending out among the members of society is more practical than how it is right now.
Repurposing businesses relevant to the COVID-19 pandemic is another way we can help the economy. Because multiple businesses also popped up during the pandemic, their relevance will be questioned after the pandemic is over. For example, some mom-and-pop businesses that exclusively took delivery orders sprouted during the pandemic. Some large businesses worldwide also repurposed their liquor production into taking on hand sanitizers. Revertingthese businesses to how they were normally pre-pandemic is vital to save the economy. However, these businesses became crucial to the current situation. They may become slightly irrelevant post-pandemic. Hence, making sure they will have somewhere to go to is key to economic recovery.
Although the COVID-19 is still raging, we continue to find solutions to soften the blow of the effects of this pandemic on the economy. Increasing incentives, decreasing interest rates, rolling out vaccination programs, reinforcing medical care, and repurposing businesses are among the strategies that the country can make to prepare for the post-pandemic era.