https://www.cnbc.com/2020/11/09/vaccine-news-gives-a-much-needed-boost-to-the-economic-outlook.html
Pfizer came out early this week to announce that their vaccine had a 90% success rate in trials. This news gave a gigantic boost to the economy in hopes that we may be moving to getting a working vaccine out the public. This vaccine would mean big things for many businesses, such as they would be able to go back to running at full capacity. In addition to this, there are also consumers who have not been leaving their homes. This news follows just a week after we saw record breaking GDP growth in Q3. Also this news comes at a time where we continue to have record breaking cases day after day and it is beginning to become more of a concern.
The speculation is that a vaccine would add a lot of hope to the economy in terms of growth and jobs. However, I think at the same time a vaccine could help out the economy a good amount, there are also corporations that have thrived amidst the pandemic. These companies such as Zoom, Amazon and other tech stocks have seen some unprecedented growth. But this growth may end up being wiped out by a vaccine because they have established themselves as a way to get around the virus.
Do you think that this boost to the economy may actually be taken away from because of the losses to companies like Amazon and Zoom? How quickly could a vaccine help the economy?
7 comments:
When the vaccine is readily available to the public it may slow some of the growth these companies have experienced, though I do not think this will deter the economy as a whole. Amazon has proven even before the pandemic that they are a major player in the economy, and I do not see people stopping online shopping at all. As far as Zoom, they may not be as successful as they are now, though I think many corporations may shift to more online work for lower level employees to save money on office space. So it may be used less, though I still think it remains as a useful tool. The real question though is when will the vaccine be readily available for the public? This could be sometime mid 2021, meaning the virus will still be prevalent through the winter and spring. Additionally, Pfizer did not take government payments for the vaccine, so will the US be their first priority?
I agree with Damon. I think that Amazon will continue to thrive as it already was pre-pandemic. However, the future of Zoom is uncertain. Companies might continue to use the platform indeed, but for how long? There have been some speculations that Zoom will be used more than ever before post-pandemic because of lower costs and convenience, but whether or not that will be the case is not certain yet. As far as what a vaccine could do to the economy, I definitely think it will be a boost. At least, it will be a step towards economic recovery.
I agree with you both I definitely think zoom will decrease but will still be more popular then it was before, I think it will become a permanent platform and i think amazon will still trend upward just not as drastically. A readily available vaccine will definitely boost the economy by lessening uncertainties
We need to keep in mind that the vaccine is only effective when big chunk of the population takes it, there are many people who have already refused to take the vaccine when it comes out while others don't think that COVID is real. However, I don't believe that Zoom and Amazon will face losses once the COVID infection cases drop down and we return to in person work and college. These two companies have now become a key part of our lives and it will be hard for people to just quit using them. Therefore, I think that the vaccine will definitely give the economy a boost.
Personally, I don't believe that the economic growth that vaccine would bring would be deteriated by the decline of companies like Amazon and Zoom. As many have already stated in this thread, Amazon will continue to prosper long after this virus is gone. However, Zoom may not see anymore profits like they have in 2020, but I don't think the company will suffer too bad. They have managed to demonstrate to firms that it is no longer required to go to the office and do work. In my opinion, I think many entities will continue to do a hybrid/at home work system after Covid-19 had passed. It is important to realize that the loses of these companies may actually be a signal for a recovering economy, as it indicates that people are finally going out again and spending. Specifically, I think small businesses will see the most benefit out of this vaccine, as many people will finally feel comfortable to go eat out and shop in local stores. Moreover, consumers are much more willing to help out local businesses at this time due to the severe losses they have respectively suffered.
I agree with what you all said here, the vaccine will work if everybody is confident about it and takes it without doubts, thus the vaccine has to be 99.9% safer. With that, it also depends on how it is distributed within the US and around the world. Once the vaccine comes up, big companies like Amazon and all, won't face losses as they have come up a pretty long way and they know how they are running their businesses and what to do when the vaccines come or with any similar situations.
I don't think that there will be any losses in companies like Amazon or even Zoom. I believe that we have made zoom a part of our life as a new app. I think many schools and colleges will normalize using zoon for office hours, e.t.c. Amazon is a company that has been doing very well before COVID-19, so I don't think that there will be any changes in the economy as such. The vaccine, in my opinion, is not a good vaccine sure it gives hope but it is only 90% effective. I believe that a vaccine should be at least 99% - 99.9% effective to be used by people. when there will be a vaccine release it will take some months to come to the people and then it will be distributed which will take a couple more months. So I don't think it will be a quick process.
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