How COVID-19 has affected the US economy and GDP

The US economy has not been as shaken by something like it has been by COVID-19 since the Great Depression. In fact, in the week ending July 11, 30.2 million American were receiving unemployment checks. Many small businesses suffered as a result of the pandemic. Workers could not be paid because people were not buying things that they would normally buy. Many Americans were holding on to their money because they were worried about how they were going to buy things in the future. In other words, consumer confidence was very low. Reopening paused as the reported cases of people with COVID-19 increased. Businesses were closed again, especially in the South and West regions. According to many economists, the fiscal package of nearly $3 trillion helped to minimize contraction. However, there have been claims that the unemployment benefits that many people have been receiving have been disincentivizing people from seeking employment. This has become somewhat of a partisan issue as it is mostly Republicans that are making this claim. There are many effects that COVID-19 has had on the economy. Investment in homebuilding decreased largely. The US GDP was impacted immensely by the pandemic, falling at a 32.9% annualized rate.

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