The Economic Impact of the COVID-19 pandemic

The effects of the COVID-19 pandemic is a new reality that everyone is living in, and the major topic that many are discussing is the economy and how it relates to the pandemic. A common quote being stated is “who cares about the economy if it means that no one dies” and while there is a very valid point to that statement, something else that should be noted is that many are not understanding that a terrible economy will also result in many people dying. Economics is not just important to wealthy people, economics determine whether one has a job, can afford rent, insurance, food, etc, there is no right answer on what to do here is the COVID-19’s impact on the economy is a lose-lose situation, many people will, unfortunately, be dead regardless on the path that the country takes. Various countries do have safety nets, but there is only so much a safety net can handle, St. Louis Fed chief James Bullard has estimated unemployment would reach 30%, and a country will not be able to function with a third of their people out of work, there is only so much money to go around. While I am not advocating ending quarantine and social distancing measures (that is the worse option, the economy can bounce back, but the same cannot be said for human lives) but the economic impacts of this pandemic cannot be ignored, many corporations and small businesses will be closed, people will be out of a job, and people will, unfortunately, die due to the social safety nets being stretched too far.