As we have seen, the COVID-19 pandemic has brought a tremendous impact on the US economy, with massive job loss, retail business shutdowns, huge downfalls of stock prices, and other repercussions. One might wonder, is the US economy going down? The answer to this question may not be straightforward, but it is safe to say that there are certain factors that may contribute to the current state of the economy.
One major factor is the effect of the COVID-19 pandemic. The virus has caused an economic downturn, and it is estimated that we can expect up to a 6% decline in the US economy in 2020. This downturn will significantly impact the world economy as well, with the International Monetary Fund (IMF) projecting a global recession. This decline is primarily due to the COVID-19 pandemic’s impact on overall business activities as people are staying at home and businesses shut down.
Another factor that may impact the US economy is the recent developments in the US-China trade war. With both nations placing tariffs on each other’s goods and services, the trade war may cause a slowdown or shrink growth in capitalist markets. Currently, there are trade tensions between the US and India, which could have a detrimental effect on the US economy should trade negotiations go badly.
Also, the US economy could be going down due to the national debt. In March 2020, it was over $23.6 trillion, with the federal government’s annual debt-to-GDP ratio at nearly 109%. These numbers show that the government is spending more than it’s earning, with annual federal deficits close to $1 trillion for the last few years. This trend could cause a negative impact on the US economy as the government encounters issues due to lack of funds to meet the country’s economic and infrastructural needs.
Conclusion
In conclusion, the US economy is facing significant challenges, but whether it will go down or not is still up for debate. The COVID-19 pandemic alone has caused increasing pressure on the economy, and factors such as the trade war and national debt could add to the pressure. No one knows for sure what will happen next regarding the economy, which is why it’s essential to stay informed and prepared. One way to be ready is to learn survival skills, which can help you save money and find ingenious ways to solve problems.
