Before the Coronavirus pandemic, America’s economy was booming. That is all going to change thanks to COVID-19. People are being laid off in large numbers, businesses are shutting down, and people are losing their homes.
The COVID-19 pandemic will have lasting impacts that last for many years. With that being said, consumers should be prepared for years of hardship due to COVID-19. Below, you’re going to learn about the impacts of COVID-19 and how they’ll be long-lasting.
Mass Layoffs
While things are starting to improve, Americans are still experiencing an exodus of jobs across the country. More and more people are being laid off. Last month, the country added 1.8 million jobs. That is a decent number for current times. Nevertheless, it is significantly fewer than the 4.8 million jobs added in June.
Furthermore, the employment rate remains at extremely high levels. In April, it was 14.7%. Last month, the number decreased to 10.2%. As a result, politicians in Washington are working diligently to approve an economic stimulus that they hope will jump-start the economy.
The good news is that the slowdown wasn’t as bad as some economists expected. The country’s economy is far from being healed. With that being said, consumers should brace for future layoffs.
There is a good chance that the economy is not going to recover overnight so more layoffs may be coming. Booking, Amazon delivery services, Wacker Neuson, the Mohegan Sun, and others are laying off.
Housing Crisis
America may soon experience another housing crisis. Until recently, housing prices across the United States have climbed significantly higher. That is likely going to change soon. Foreclosures are looming.
Many Americans are in arrears when it comes to their rent and mortgage. Right now, foreclosures and evictions are being stopped by government mandates. However, those government mandates are going to stop at some point.
When that happens, there is a risk that Americans are going to be forced out of their homes. They’ll be pushed onto the streets and this will completely change the housing market. This will cause the supply of houses to climb higher. Then, housing prices will sink lower. It will transform into a buyer’s market.
This could lead to a major increase in homelessness across the country too. It will be difficult to prepare for this onslaught. Americans will need to do everything they can to pay their bills or else.
Business Closures
Unfortunately, the United States is facing tough times. While many may be able to survive unscathed. A lot of people are going to experience turmoil. Because of COVID-19, a lot of businesses are shutting down permanently.
This is leading to a loss of revenue for states and higher unemployment numbers. Just this week, it was announced that Rent the Runaway would be permanently closing all stores. It has also been announced that Stein Mart will be closing all stores. Meanwhile, 35 of the most popular restaurants in the United States will not reopen after COVID-19.
Suffice to say, America is going to see a massive influx of business losses. With businesses closing across the United States, homelessness will likely climb higher. It is going to be many years before America recovers from the COVID-19 pandemic.
Stock Market
It is difficult to predict what is going to happen to the stock market. However, it may not be good. Despite the economy struggling, markets continue rising. One has to wonder how much longer markets can keep up.
Some believe that the economy is going to make a U-shaped recovery but others are skeptical. Consumer confidence has fallen in 41 states leading many to have poor outlooks on the future.
The stock market may be able to survive temporarily. However, there will come a time when it has to face reality. When this happens, the market will likely drop significantly. Investors who didn’t sell early will be left taking massive losses. Many will be looking for a licensed moneylender in Singapore or other places if they cannot get the funds they need..
Summary
The American economy is not going to recover overnight. It is going to take many years for things to return to normalcy. With that being said, consumers should be prepared for hardship. There will likely be many years of turmoil before the economy improves and jobs return.
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