The United States posted a 31.4% decrease in GDP for the second quarter, the largest decrease in our history and surpassed the original holder by 10% in 1958. Now, this is to be expected considering the country was almost entirely locked down for much of the second quarter. Businesses are still not completely open and I am sure will be less than average for the next quarter. Despite that, the next quarter is expected to have a big rebound. I feel a little hesitant to jump on board and believe a record breaking projected increase next quarter considering businesses are still half of what they were. This tied in with political uncertainty such as the election puts me on edge. My question is, do you believe we will see this record increase, or could we be missing something such as a potential second lockdown? How much of an impact will the winner of the election have on this potential increase?
https://www.cnbc.com/2020/09/30/us-gdp-q2-2020.html
4 comments:
the winner of the election will have an huge impact the future of the economy especially if they fight for an increase in the stimulus package that is expected to hit some time this year. in short the election will have gigantic impact on where the economy will end up
It is not surprising to see that GDP dropped so significantly with the lock downs. I don’t think that the next quarter will be a record breaking increase, but I do agree it will be a bigger rebound. I think there will definitely be an impact, it’s just a matter of how big. We also don't really have any clear idea of what either political side is planning to do right now in terms of policies, especially with the budget deficit.
I expect we will experience a "second wave" of overwhelmingly high coronavirus cases in the winter. This could prompt a second lockdown and slow down the economy even further.
I think that maybe in the next quarter there can be a record-breaking increase and therefore the bigger rebound. Everyone has been talking about the second wave since June and I think it will be worse this time. I think there will be an impact on who wins the election because the health plans that each is planning to provide are different and in these times the public wants what is best for them. so I think the elections really matter.
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