The Economic Impact of COVID-19

The economic impact of the Covid-19 pandemic has been enormous; unprecedented in US history, at least since the 1930s. The Administration, Congress, and the Federal Reserve bank have taken major steps over the last months to soften the impact on employers, workers, corporations and other parts of the economy including huge, multi-trillion dollar infusions of cash through loans and bond purchases into the banking system and directly to businesses.

The Economic Impact of COVID-19

The economic impact of the Covid-19 pandemic has been enormous; unprecedented in US history, at least since the 1930s. The Administration, Congress, and the Federal Reserve bank have taken major steps over the last months to soften the impact on employers, workers, corporations and other parts of the economy including huge, multi-trillion dollar infusions of cash through loans and bond purchases into the banking system and directly to businesses. The Administration and Congress have passed the CARES Act, which is designed to reinforce the efforts of the federal government in the corporate sector, send checks directly to citizens who meet certain eligibility criteria, shore up state unemployment compensation programs, provide financial support to beleaguered hospitals and provide forgivable loans to small business employers who agree to protect the wages of their workers.

At this point, it does not look as if these early initiatives will be sufficient to address the full magnitude of the economic fallout from the pandemic which is predicted to continue in many parts of the country throughout the summer and possibly longer, maybe even into 2021. Already, however, the economic impact of this crisis is being felt in very different ways dependent on the nature of a worker’s job, and that more economic assistance will be needed in the weeks ahead. Essential working-class employees, like grocery store, public transit, and health care workers are being affected in very different ways by the pandemic than professional managerial class workers who can work at home, for example. This section of our Covid-19 site will feature links to information that we think offers the best insight into the economic impact of the pandemic and its differential effects on various parts of the population and the results of those policies and budget interventions at the federal and state levels to contain the potential economic damage.

Reports

Important Links

Coronavirus Navigation

Image courtesy of Getty Image / Justin Sullivan