US economy is on red alert as the coronavirus has invaded the world market. US economy can't stand too long if the coronavirus isn't dealt effectively. Economy specialist are alarming the situation. The coronavirus has disruptly effected the US economy as well as the entire world market.
Photograph: Richard Drew/AP
Posted on March 15, 2020
Coronavirus effecting US economy:
The coronavirus has disruptly effected the economy of not only the United states but the entire world market. COVID-19
caused by coronavirus and spread by almost every mean among the human has put the world market and economy in danger zone. The coronavirus has restricted the human kind in limited boundries.Almost all the US businesses are closed or being processed remotely from homes
. The people are avoiding visiting markets, stores, malls, sports events like football, basketball and many other. Restaurants and food places are being emptied all this is causing a big disruption in economy and market losses. It can disrupt the global supply of goods, making it harder for U.S. firms to fill orders. It can also waylay workers in affected areas, reducing labor supply on one end and on the other slow the demand for U.S. products and services.
Breaking the supply chain and haulting production:
The break down of supply chain will effect the US industries which in turn will directly hit the economy of the United States. By looking into China's situation, they stopped the supply chain in those area which were infected and that cause China a big loss. Poeple were unemployed. It can happen in the United States too breaking the supply chain will stop the production and in simple words companies will have no other option but to go for down sizing for an unknown period of time.
Hard hitting of import and export by the supply chain is also followed by the people who don't want to go out of their homes. The peoples have limited the buying options and are trying to buy things of need only. Emepty statdiums, metro stations, hotels, airports, train stations, no cars and transport vehicles on roads and many more will just bring down the economy in no time.
when firms are forced to close, workers likely will receive less money than they otherwise would have expected and, in some instances, will receive no pay. As a result, these workers will have less to spend, again cutting overall demand. A fall in demand that follows a supply shock constitutes a one-two punch that will further contract economic activity, although the size of these effects is largely unknown.
U.S. interest rates have recently fallen to historic lows in a sign of increasing economic uncertainty. The 10-year Treasury yield fell from 1.69 percent to 1.50 percent in the last week of January after remaining steadily around 1.7 percent to 1.8 percent throughout 2019 and early 2020. The decline continued through February, and for the first time in 150 years, the yield rate dipped below 1 percent on March 3.
How much is US economy immune to Coronavirus:
According to NYT, After a string of deaths, some heart-stopping plunges in the stock market and an emergency rate cut by the Federal Reserve, there is reason to be concerned about the ultimate economic impact of the coronavirus in the United States.
The first place to look for answers is China, where the virus has spread most widely. The news has been grim with deaths, rolling quarantines and the economy’s seeming to flat line, though the number of new cases has begun to fall.
Advanced economies like the United States are hardly immune to these effects. To the contrary, a broad outbreak of the disease in them could be even worse for their economies than in China. That is because face-to-face service industries — the kind of businesses that go into a tailspin when fearful people withdraw from one another — tend to dominate economies in high-income countries more than they do in China. If people stay home from school, stop traveling and don’t go to sporting events, the gym or the dentist, the economic consequence would be worse.
Guardian - Chaos on the stock markets, Europe in crisis, emergency interest-rate cuts from central banks – those with clear memories of the 2008 financial crisis and the crushing recession that followed could be forgiven a shudder of deja vu. But this time it is different – if not necessarily better.
Coronavirus brings an end to US peak time:
Since the US economy crawled from the wreckage of the last meltdown, it has enjoyed its longest period of expansion in history. US unemployment has hit record lows and stock markets have hit record highs even as Europe has continued to suffer and growth has slowed in China. Plenty of problems remain but, if you squint, the US economy has looked rosy.
Now the Covid-19 pandemic looks set to bring that all to an end. But how badly and for how long? “The tornado is in our backyard,” said Mark Zandi, the chief economist at Moody’s Analytics – and until we know how long that tornado will last, the depth and severity of any recession are hard to predict.
“At this point, this feels much worse than 2008,” Jason Furman, Barack Obama’s former economic adviser, said on Friday. It has hit everyone all at once, unlike the financial crisis, but he too concedes it is all about how long it goes on.
If the coronavirus hasn't contained immediately the people of the United States are going out to run out of resources. Once their kitchens are emptied out the people are going to look out for their necessary items in stores. The stores will have nothing left as the production will have stopped. This is going to create a serious issue.