The news of a vaccine may curb the threat of the US economy sliding into a recession. Before the news of a vaccine was publicized the US economy was already recovering better than what was predicted. With many countries in Europe begging shutdown and lockdowns the US will likely follow suit in the next coming months but not as severe as European countries, these more relaxed restrictions will help the economy not lose much momentum on its journey of recovery. As the news of the vaccine breaks the chance of having a vaccine will only help our economy in it a trend to pre covid levels, all this being said the economy is still not predicted to be in the state it was in before covid until 2022 or even later but the signs of a vaccine will help the US decrease it record-breaking infection rate. Everything in the US economy seems to be trending in the right direction but we must keep in mind that these future lockdowns will hamper economic growth and employment growth. The delay of stimulus packages being passed is also a problem we will have to face. Even though the signs of a vaccine have appeared, the economy can still be set back by the constant increase in covid cases through the US, we still have a long road to travel to fully recover but it seems the road is paved for us to travel.
What do you think the act of having a vaccine will have on the economy and do you think it will come in time before the US sees lockdowns and restrictions?
https://www.economist.com/finance-and-economics/2020/11/14/what-a-vaccine-means-for-americas-economy
https://www.economist.com/finance-and-economics/2020/11/14/what-a-vaccine-means-for-americas-economy
3 comments:
I think when a vaccine is officially released consumer confidence will increase more significantly because then people will start to see the light at the end of the tunnel. I don’t believe the vaccine will be released anytime soon, so with that being said I do see more restrictions and possible lockdowns in the near future in order to contain the spread. There are also logistical things that need sorted out in regards to distribution and safe storage temperature. After the downturn from the Covid shock, it is inevitable that it could take years for the economy to recover fully.
The news of the vaccine will improve the economy, especially the stock market. It puts hope into businesses that have been sidelined due to the virus. We see this through increased stock prices in companies such as Carnival. This is great, but the vaccine does need to arrive soon in order to completely curb the recession talks. I do not see it arriving before shutdowns. It takes a while for these to be distributed to the whole country. Its going to be interesting to see what happens to the economy here in the next few months.
A vaccine has been announced which is 90% effective but it has not been released yet. It will take some months and till then if there is no lockdown enforced on us then people are going to have a lot more chance of getting the virus. There has already been an increase in the economy we can see that people are normalizing everything since the announcement of the vaccine. so I don't think that the vaccine will be released before the second lockdown.
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