COVID-19 has become a global pandemic that has impacted every aspect of our lives. World Health Organization characterized the illness as a pandemic on 11th March 2020, resulting in 3 million cases and the demise of 207,973 people (Bharati et al., 2022). The illness is characterized by flu-like symptoms and was first discovered in Wuhan, China. The pandemic has affected public health and has significantly impacted the economy worldwide.
Effect of the Pandemic on the Economy
COVID-19 has affected the financial market and the economy in many ways. As a result of the pandemic, there has come the need for collective measures to curb the effects of the illness. The mitigation measures that have been put in place have resulted in a significant reduction in income, and disruptions in services, transportation, production, and manufacturing companies. The effects have resulted in an increase in unemployment rates (Pak et al., 2020). The pandemic resulted in policies being enacted, such as lockdowns that resulted in low business activities and the closure of other businesses. In addition, the death of the people infected by the disease led to reduced low productivity and workforce. There have been cases of trade disruptions and destructions in the tourism sector worldwide, hence a significant turmoil in the world’s economic health.
Impacts on Employment
There is a consequential impact in the employment sector that adversely impacts a nation’s economy. As presented by International Labor Organization, the cases of unemployment are that more than 400 million employments were lost due to the pandemic between April and June 2020 (Ceylan et al., 2020). Unemployment, injustice, poverty, and debt have been exacerbated over the globe as a result of the pandemic. Employees throughout the world endure the weight of a crisis, no matter where it occurs or what business it affects. Low and middle-income countries have significant obstacles ad have been the most affected. The majority of the world’s workforces have been affected by workplace closures. In the long run, unemployment became a major decline in the economy.
Global Ramifications (Trade with China)
The COVID-19 pandemic has resulted in a decrease in the supply of China’s inputs. It has affected the capacity of production and exports to other nations that have been dependent on supplies provided by China. The pandemic is expected to affect Indian trade by over $384 million, placing it as the highest affected by the industrial downturn in China (Liu et al., 2022). As a result, there is a continued conflict in trade with the ramification of China that continues to loom as the pandemic progresses.
The government’s and the Federal Reserve’s Reactions to the Covid-19 Pandemic
The government is making an effort to lessen the toll on people and the economic impact of the pandemic. There has been a more important combination of governmental policy and mass behavioral change efforts. Federal Reserves have taken responsibility as the United States’ central bank to guarantee that the country’s economy is operating at its full potential (Clarida et al., 2021). The country’s export economic growth has been implemented by implementing monetary policies to increase employment to keep prices constant. The success of a sound monetary policy depends on the effectiveness of fiscal policies and the use of government spending and taxation to influence economic conditions. A stable financial system is essential for a healthy economy, and the Federal Reserve supports it.
Effects of Covid-19 on Small Businesses
As a result of financial difficulties, several small businesses have gone out of business. Due to a lack of profit, many small enterprises have decreased productivity and performance (Belitski et al., 2022). Social‐distancing restrictions and health‐ and economic‐driven demand shifts from COVID‐19 are expected to shutter many small businesses. In addition, many small businesses create low-quality items due to the impact of Covid-19 on production.
Reflection
The COVID-19 pandemic has impacted my family and me in different ways. Three of my family members contradicted the virus last year, leading to grave health consequences. The pandemic affected our goals and upset family dynamics, including interactions due to fear of spreading the virus. Many family members lost their jobs while others started working from home. There were uncertainties about the ultimate results of the situation at the beginning of the pandemic. It was quite difficult to adjust to life changes associated with the pandemic in my personal life.
My interactions and schooling changed online, with most physical learning centers and public gatherings prohibited. The possibility of having on-campus jobs was not there anymore. I was separated from the possibility of having regular physical meetings. I had to adjust to the new norm of having online classes and avoiding physical meetings with friends and other people. I reorganized my plans to ensure that I could connect with friends and family members who were away through social media platforms.
We all focused on handling all challenges, including treatment for those who were sick and adjusting to the realities associated with the pandemic. It was hard to focus on school and my job while observing daily updates that displayed horrifying death statistics across the world. However, with recurrent encouragement and support from friends and family, it was easy to lead a better life and adapt to the changes. With several people changing and adapting to realities that their livelihoods changed, there was a possibility of experiencing a mental breakdown. We all encouraged each other to ensure our mental health was good and increased our participation in activities that we enjoy doing.
References
Belitski, M., Guenther, C., Kritikos, A. S., & Thurik, R. (2022). Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses. Small Business Economics, 58(2), 593-609. Web.
Bharati, S., Podder, P., Mondal, M. R. H., Podder, P., & Kose, U. (2022). A review on epidemiology, genomic characteristics, spread, and treatments of COVID-19. In A. Khanna (Eds.), Data Science for COVID-19 (pp. 487-505). Academic Press. Web.
Ceylan, R. F., Ozkan, B., & Mulazimogullari, E. (2020). Historical evidence for economic effects of COVID-19. The European Journal of Health Economics, 21(6), 817-823. Web.
Clarida, R., Duygan-Bump, B., & Scotti, C. (2021). The COVID-19 Crisis and the federal reserve’s policy response. Web.
Liu, J., Tian, J., Lyu, W., & Yu, Y. (2022). The impact of COVID-19 on reducing carbon emissions: From the angle of international student mobility. Applied Energy, 119136. Web.
Pak, A., Adegboye, O. A., Adekunle, A. I., Rahman, K. M., McBryde, E. S., & Eisen, D. P. (2020). Economic consequences of the COVID-19 outbreak: The need for epidemic preparedness. Frontiers in Public Health, 8, 241. Web.