Question

How does business cash flow affecting during COVID-19. How it affects USA economy? Give an Example

Answer 1

With the onset of the Wuhan originated pandemic which has affected the entire global economy including USA the effects would be ascertained in the long term however the worst is reserved in terms of cash flow wherein every business with the lack of demand and supply chain running optimally .The entire business would be essentially a transfer of cash for services.The barter works because there is one party with demand and the other holding supply chain.With Covid 19 as happened with the Depression and World War the service supply chain is non existent which holds the business cash flow to negate and hoard.The USA economy holding the torchlight for the world economy with even controlled measures has not been able to control the growth of the pandemic which has forced the government exchequer to bring out remedial measures to control business activities the cash flow and the demand supply chain cycle is not optimal.To give an example if the business whose sole business can be executed offline(A travel agent,a chain of hotels) with no demand there is empty inventory/low bookings which would bring his business to null and void with zero cash flows unless travelllers/offsite activities start