The year 2020 is still far from ending but people all over the world face much challenges and battles compared to issues recorded in the previous years of this generation. The presence of Covid-19 pandemic is undeniably challenging the world's competency over this unseen enemy as it does not only pose threats in the lives of millions of people but also displays economic deterioration in thousands of countries. It is said that the damage it brought to the economy is unparalleled since the great depression in 1930s.
From day to day, we are bombarded by the facts that mirror the detriments this plague has brought to mankind with the use of different platforms to reach the general public. The world practices social distancing guidelines as a countermeasure in preventing the spread of the virus since no final cure and vaccine are released yet. However, community quarantine and lockdown have hurt many business industries causing unemployment of more than 10 million people. Hard hit countries like U.S. and Italy have their GDP recoiling at each day. Record breaking downfall of businesses made the future of these economies uncertain even for experts.
The economy of countries like Italy and Spain which are known for their tourist industry, have been paralyzed. Thousands of people in these countries rely on tourism as source of income, leaving them jobless as destination hubs closed. Even large hotel and restaurant companies and service-providing organizations crumble as the business sector collapsed. Also, the United Kingdom and Japan which are known for their flourishing economy experience the same apocalyptic situation. Furthermore, India, which houses dense population of the world is also in dire situation as only small percentage of people are covered by social security, leaving many in no hope.
The National Bureau of Economic Research formally declared that the US recession began in February. This economic condition continues as almost 40% of Americans with income below $40,000 have reported job losses in the month of March. The income of the federal government declined due to decreased consumer spending brought by unemployment. Income from petroleum and oil products deteriorated caused by low vehicular movement and cancellation of flights.
The national and federal banks right now are in effect printing money to counter the piling bills caused by this pandemic. However, despite of the said purpose, its continuance will blow up to a much greater inflation, leading to long term hardships and sufferings of people. Stimulation of the economy is indeed needed.
In the hopes to revive failing health of economy, the affected countries gradually ease up the community lockdown and provide concessions to small businesses that will keep the economy running. But are these enough? The stimulus package provided will take effect only after months since the businesses operating are only in small number. Governments may need much more superior countermeasures to combat this ever-going crisis without sacrificing the lives of many people. There also the threat of a second wave infection that might be bigger than the first one.
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