Question

Number 3. Discuss the economic impact of the corona virus on the U. S. economy. Explain the relief program by the federal government and the roles of the city and state governments during the crisis. Also, which critical sector of the economy proved most vulnerable and why? Finally, what lessons were learned at home and globally?

Answer 1

Disruptions to global supply chains are among the coronavirus' clearest results. Looking deeper at global supply chains, major changes have already occurred, with the list of producers outside China being forced to decrease production at their plants increasing longer each day.

Not only can the virus affect production, but certain parts of the U.S. economy will also suffer market declines — and significant sales reductions — because of the overall economic impacts. Two distinct results need to be considered. people may buy less of those products and services because they fear future exposure to the virus.

The current U.S. domestic economy, with its robust labor market and rates of demand but relatively low inflation and investment, already exhibits an increased sense of uncertainty. Political uncertainty and contradictory regulatory strategies caused businesses to think twice before spending or expanding.

The most critical and urgent need for small business owners is cash — financial assistance to remain alive as the crisis's most devastating economic effects take root. Many state and local governments have also jumped in to help, including offering emergency support and tidying up on small businesses before federal funding is actually available. The most relevant initiatives are those that include direct grants to offset at least some of the income that small companies are missing and to help them cover the costs of payroll, rent, insurance and other essential expenses. The demand for these programmes, which speaks to a desperate need for new and continuing funding resources, has been exceptionally strong. For example, on March 23, The City of Lakewood, Ohio announced a Small Business Rent Relief Program, allowing grants of up to $3,000 to cover rent payments for small businesses. The fund is capitalized by Economic Development Program of the City and Block Grants from the Federal Community Growth. It received a significant number of requests and was removed on 27 March. The City of Hillsboro, Oregon has made two rounds of funding available through their Small Business Disaster Aid Program, at $500,000 each.

In March, the US economy lost 701,000 jobs, according to a study released Friday by the Labor Department. That was a lot steeper than economists' estimate of the 100,000 loss consensus. The unemployment rate rose from 3.5 per cent in February to 4.4 per cent.

Digital exposure resembles oxygen now. Our social workers have been educating cancer patients for years on how to navigate their own electronic health data and care plans. Now all of our patients who are having financial problems need the advice. Without internet, students around the world could not use the online learning resources. COVID-19, like the refugee crisis, showed us that the globe lacks the capacity to build a strong, intensive care capability. This is now a strong obstacle for leaders of the planet.