Coronavirus and recession, the fall of the American economy!

The recession hits America ruthlessly this time with COVID-19, but not just the recovery seems unimaginable but also the spread of Covid-19 is unimaginably high.

COVID-19 is a deadly pandemic virus that so far has taken away thousands of lives. With its rapid spreading nature and the lack of immediate cure. It has pushed people to stay indoors and quarantined.

Though scientists are pushing their way into finding the breakthrough cure for COVID-19, the economy of countries like America and China are facing downtown.

“It’s really hard to predict how it’s going to play out,” said Wayne Outten, founder, and chair of Outten & Golden, an employment law firm in New York, of the coronavirus fallout. “The ripple effect can be dramatic in so many different industries.”

Apart from America, china is majorly affected by corona with more than 80k victims, followed by Italy, Iran, South Korea, and Spain are fighting this virus outbreak. With the financial market crashing gradually, these are the critically affected sectors:

Supply chain

Small scale industries

Oil & gas companies

Word of economists:

Economists in the country are thinking that the country is heading towards recession,

“I wouldn’t be one bit surprised if when we look back at the data, it is decided ... that the recession started in March,” Blinder, a former Federal Reserve vice chairman, said at CNBC’s “Squawk Alley.”

 Layoff:

A report says around 53% of Americans did not have an emergency fund that covers at least three months of their salary.

With a financial crash aligning with a lack of employees, lay off would be the next step for companies hitting rock bottom.

“I think the odds are now heavily weighted toward there being a recession, that’s a not a sure thing at this point, but I think it’s better than an even-odds bet.” According to David Wilcox, a senior fellow at the Peterson Institute for International Economics. 

Wilcox also added an average recession would cost the jobs of 3.5 million Americans, with a 6% unemployment rate. The majorly affected would be minorities and Americans with inferior education; he also added that workers below 40 would be losing more jobs during the recession.