The Long-Term Economic Impact of COVID-19 on the U.S. Economy

The Covid-19 pandemic has been devastating in many ways. The economy suffered, the social nature of humans has suffered, and most importantly numerous lives have been lost. The pandemic is making people ask scary questions. Will the coronavirus change everything we know? Well, the answer is yes and no. It’s already changed how we work with a lot of companies working remotely. It’s also affected how we act in social places and the livelihoods of those whose jobs rely on humans being in social spaces.

Tourism, the restaurant industry, and many other industries have suffered, but stocks seem to be doing well as well huge corporations like Apple and Amazon. It would be unfair to undermine the enormity of its impact; however, unemployment rates have dropped to 8.4% as against April’s 14.9% unemployment rate. Of course, the economy is not where it was in February pre-pandemic, but things seem to be looking up, or are they? Let’s discuss the long term impact of the Covid-19 pandemic on the economy.

1. E-commerce will grow

While e-commerce is already mega-popular (i.e Amazon), it is set to grow even more. People are turning to online shopping experiences because it means they don’t have to go outside, and a lot of people have become accustomed to it after the nationwide lockdowns. E-commerce is a rapidly growing industry that is set to transform the economy.

2. Low-wage workers face a crisis

Low wage workers were already under a huge amount of pressure before the pandemic, and now it only seems to be getting worse. With a lot of small businesses closing or downsizing, the low-wage workers are facing a housing crisis and an all-round survival crisis. Minimum wage is simply not going to cut it no matter how far they stretch it. Hours have been reduced, and inflation has begun to creep in. These workers may feel the impact of the pandemic the most.

3. Another wave

Vaccine trials are moving very fast, but they might not be fast enough. The reopening of the economy means more people are venturing outside their homes. This could mean another wave of the virus hitting even stronger than the last. The economy will have to shut down once more, and this time small businesses may not recover.

4. Small businesses may struggle

The lockdown established a monopoly of major industry. People started ordering food and other items online that they would normally buy in local markets. This has led to the closure of small businesses and street vendors. Unless they branch into e-commerce which most of them cannot afford, their businesses may go through some tough struggles.

5. Tourism

The tourism and aviation industries have been dealt one of the biggest blows of this pandemic. As countries close and open their borders to protect their citizens from the virus, these industries will have to bear the fluctuations of customers till a vaccine is ready.

The Covid-19 pandemic has taught us a lot about what we need to survive. Protecting low wage workers is important across all industries because they are most vulnerable to the effects of the virus on the economy. It is also important that we remember how essential they are.