Big Disease, Big Bust

A depiction of the stock market in the U.S

Petr kratochivil

A depiction of the stock market in the U.S

Aidan May, Writer

Nothing is flooding more headlines than the recent Covid-19 pandemic. Schools shut down, restaurants shutting down, leading to one of the worst economic woes since 2008. Looking back on previous pandemics it seems to have a similar effect. A disease comes during an economic boom; it spreads quickly and then the economy suffers because of it. But if the flu can’t tank the economy, why is this flu like disease doing it with ease?

Since the virus was introduced in America just weeks ago regulations and mass panic have taken over daily lives. With many stockpiling supplies seemingly ready for Armageddon. People are more likely to wash their hands making hand sanitizer revenue go up but supply is not meeting the demand. Even toilet paper seemingly inaccessible lately since stores across the country are completely out of it. Stocks seemingly have plummeted to bare market value the lowest they’ve been since the recession. Since people have stockpiled and are less likely to buy products it makes companies less valuable  Yet it is difficult to describe why the economy is plummeting

In order to stop the spreading of the virus many states including Missouri have passed new regulations. For example dine in options at restaurants are not allowed and recently no more fountain soda. It is not as bad for big chains since they have nationwide corporations to rely on but small local businesses are being hit hard. States have advised that people work from home if they can. Smaller businesses have been hit hardest because they do not have either the man power nor the resources to stay afloat. Many believe that the middle class small business is the heart of the economy and if they go so will the economy.

This has been one of the worst economic crises since 2008 with many predicting another recession if regulations are not pushed through in time. With new legislation passed to expand unemployment insurance to help ease the blow to the economy. It could be like pandemics past and we try to help the economy after it istoo late. Where this situation could go depends on if the right steps are taken before too late. If the wrong steps are taken it could be one of the biggest economic busts to date. 

     

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