Blog post 3- Harrison Gold

 Harrison Gold

POLS170

Blog 3

Economic Funding Under COVID-19

The Covid world we are living into today has created tremendous hardship, in many forms.  In addition to the unthinkable death toll associated with the Covid-19 pandemic, there is the devastating impact that the coronavirus has had on the economy – both in the US and abroad.  However,, some of this impact has been mitigated by our governments efforts.

Because of the deadly and contagious nature of the Covid-19 and its variants, the last two years have created changes in our lives that were previously unthinkable – which includes the devastating economic toll resulting from Covid’s impact on the global economy.  For the sake of this blog, I will initially lay out the economic impact of the coronavirus, followed by the measures with which the US government has enacted to keep our economy in check and to avoid a complete collapse.  Many other countries has taken comparable measures with the same objective in mind – save their countries’ economy.

The economic impact of the coronavirus is changing daily.  Various economic indicators are being closely monitored, and our government is responding to the challenge.  Our government uses the data to analyze the proper and quantity of economic support that is needed for our citizens.  One indicator that is closely followed is unemployment.  In 2020, “the unemployment rate hit 8.1% and nearly 25 million Americans were on unemployment insurance, the peak of pandemic unemployment with the economy losing 9.4 million jobs in 2020.”   Additionally, “GDP decreased 3.5% in 2020, the lowest growth rate since 1946.”  

As a result of these difficult and sudden economic challenges, the US Government took bold actions to mitigate the economic damage created by the coronavirus pandemic.  In response the fact that the countries’ “small businesses were experiencing negative effects from COVID-19, the US government, through the Small Business Administration agencies CARES Act, created a program which provided 73% of small businesses with a series of Paycheck Protection Program (PPP) loans.”   These loans allowed for business continuation and allowed these businesses “to cover payroll and other eligible expenses.”  There was also a procedure that allowed for complete forgiveness of these loans.  Additionally, self-employed individuals, like Uber Drivers in the case of my uncle, were able to survive due to expanded unemployment benefits of programs called, Pandemic Unemployment Assistance, and Federal Pandemic Unemployment Compensation.

When I consider the governments role during the pandemic, I am thankful for what our country was able to do for its citizens to avoid complete economic collapse.  I am well aware that there are many critics of such extensive government intervention.  Perhaps, they believe that too much money was given out to too many people that didn’t need the funding.  Perhaps they think that giving out so much money has demotivated people from going back to work.  

Perhaps some of this criticism is valid.  However, when I weigh the possible consequences that might’ve occurred had the government not acted swiftly, I feel confident that our country did a good job during a very a difficult period in our countries’ history.

 


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