How is Coronavirus affecting your life? This question throws up many questions that critically affect the survival of human beings. The number of deaths due to this pandemic is going up every day. There is panic everywhere. Income generation has become a difficult task for many people.
Far-reaching Consequences of Coronavirus
The economic consequences of this outbreak are far-reaching. Many people have lost their jobs. Is it inhibiting you from earning income? It is quite obvious that this pandemic inhibits several people from earning income.
Due to the long term disruption in economic activity, businesses are finding it hard to achieve the expected goals. If the situation doesn’t improve in the immediate future, several Subject Matter Experts and even some big businesses may consider shutdown.
In fact; many of them have stopped their activities temporarily or permanently.
Affected people have to fight the COVID-19 19 virus with all might to survive. Unfortunately, there are no pharmaceutical products that have been proven to be effective and safe for the treatment of COVID 19.
Millions of people are taking refuge from the virus outbreak with home quarantine. That is to say that they are staying at home to prevent physical contact with the affected people and the spread of the virus.
So, the economic activities are at low ebb nowadays. Survival is getting increasingly difficult. Many people have lost their jobs. You can easily be one of them? Although the government tried hard to make life less miserable for people with a two trillion stimulus package, things were not improving as expected.
COVID-19 Pandemic Might Push Half a Billion People Into Poverty
How is coronavirus affecting your life? You might have your own biter experiences and sufferings to convey. Someone else might have their own issues. The bottom line is that the quality of life has come down considerably.
The economic slowdown due to coronavirus pandemic might push half a billion people into poverty. Various studies show that the recession causes a 20% income drop all around the world.
The socioeconomic consequences of lock downs and restricted services need to be studied very closely in the coming days to understand the real impact. One thing is certain; these quarantines and lock downs are suffocating or freezing the economy with unprecedented speed and power.
Permanent retail closures are going to make people jobless. According to the Economy Policy Institute, COVID 19 outbreak could wipe out three million jobs from the US economy. How long can the government keep providing financial aid to jobless people? It is only a temporary solution.
People are highly concerned about their finances and jobs. The best way out is to accept this new normal. That is to say, you have to make efforts to live with the coronavirus by using the necessary safety equipment like masks, gloves, and shields to prevent the virus spread. All activities must be restored to improve the financial condition of the people and revive the economy.
The Federal Government decided to spend $2.5.5 million in late February. Later, the administration realized that this figure is not sufficient to deal with the fast-increasing COVID 19 virus spread. This amount was revised to $2.35 trillion after 45 days. Do you know that the contribution of the Federal Reserve is not included in this amount?
Although it is hard to measure the exact contribution of the Federal Reserve, the financial experts say that this figure easily goes past 4 trillion. When you take all these aspects into consideration, you can find that the US Government has been spending more than $6 trillion to inhibit the economic crisis due to this pandemic.
Let’s Check Some Facts
How is coronavirus affecting your life? If you want to understand the gravity of the issue, you need to check some important facts. Consumption constitutes 70% of the GDP. Business closures and reduced household purchases have resulted in a serious fall in consumption. Since people don’t have the money and opportunities to spend, the market has come to a standstill.
In the USA, investments account for 20% of GDP. However, the businesses are reluctant to make investments due to the uncertainty. Entertainment and recreation industry including restaurants and arts make up 4.2% of GDP. As theaters and restaurants remain closed, their contribution has come down almost to zero.
The manufacturing sector contributes 11% of US GDP. You can expect complete disruption as far as this figure is concerned. Reduced demand and factory closures have been creating many interruptions in the global supply chains. Revenue slumps in all areas have shaken the economy badly. All of these aspects create a negative impact on individual income.
Pay Cuts and Loss of Jobs Are No Longer a Rare Occurrence
How is coronavirus affecting your life? Most people would say that this pandemic inhibits them from earning income. Needless to say, it has hampered economic activity at an unprecedented scale internationally. Job losses and salary cuts are a common occurrence during this pandemic phase.
It can be said that people are losing jobs fast. During this pandemic, more than 3.5 million Americans applied for unemployment benefits. It is the highest number ever recorded in the USA. What does it suggest? Job loss has become an alarming source of concern.
When you lose your job, how can you survive? It becomes almost impossible without a loan or other types of financial aids. Many people are also struggling to make both ends with due to salary cuts. This is a new situation and a circumstance to deal with.
The Deadly Combination of Health and Financial Crisis
The impact of the coronavirus pandemic is likely to be more damaging than the 2008 subprime crisis in the USA. More than 490,000 people have lost their lives due to virus infection. In the USA, the number of deaths has crossed 127, 500.
This is a highly alarming health crisis to deal with. If you look at the number of affected people, you can find the USA standing taller. There are more than 4, 816, 000 COVID 19 confirmed people in this part of the world.
The worrying fact is that the health crisis is followed by the financial crisis. In fact; most countries including the USA have started experiencing serious repercussions of both the crises simultaneously. The exact length of time that the coronavirus crisis looms over the economy will be decided by its financial implications.
The Relevance of the Fiscal Package
It is not a lack of liquidity that the economy has to primarily deal with. The fundamental issue is a temporary halt of activity because of health restrictions. There is a need for our economy to address the basic question of solvency for several companies and individuals. Therefore, the steps taken by the Federal Reserve are extremely vital.
However, they are certainly not adequate.
To cushion the downward shock efficiently, fiscal policy has been designed by the government. It has put forward the conditions for the economy to come back after the restrictions on economic activities are lifted. Spending on the crisis is very important, but the fiscal policy has to address many more issues.
The stimulus package certainly helps people withstand the suffering to a great extent. Importantly, well-thought-out federal fiscal policy focuses on strengthening the safety net so that the jobless or individuals with restricted resources can survive during the next few months.
The paid sick leave benefits can be expanded and made available to a broader set of the population. This approach works as a useful economic cushion to reduce the burden of the economic slowdown.
Moreover, the US government has been distributing funds directly to households. This method of approach is also part of the fiscal policy that makes sure that the households have the necessary purchasing power in the economy until the restrictions are lifted.
The fiscal policy is utilized to provide direct support to businesses and guarantee loans as well. These types of steps help companies or businesses to prevent systemic issues and maintain their payrolls.
Last but not least, the fiscal policy of the US federal government offers financial assistance to states. With a restricted capacity for borrowing, many states in the USA are experiencing serious financial problems. This pandemic has been forcing the state governments to spend more on health and public safety measures.
Naturally, the cost would go up.
On the contrary, the economic downturn and lower tax return lower the revenues substantially. In such a situation, many of the states are forced to cut spending. This situation can adversely affect the treatment offered to COVID 19 patients. That is where the importance of financial assistance to states as a part of fiscal management policy comes in.
To address the coronavirus pandemic, the US government has announced a fiscal policy package that is adequately large enough to solve the immediate requirements. This policy can meet the long term needs to a great extent using the economic condition and public health-oriented triggers.
How to Deal with the Financial Crisis
No matter whether you are employed, unemployed or a person living on a fixed income; you have to find ways to deal with this new situation. Many people have lost their jobs. Some people are forced to work with reduced salaries.
You should not sit idle and curse your fate if you are experiencing financial difficulty. Financial experts put forward highly useful advice for you to overcome this situation. Sit down and analyze your expenses before making a hasty decision.
First of all, you have to be aware of the possibility of a pay cut if you are an individual living on a fixed income. If there is a chance of a salary cut, the earlier you are aware of it the better you will be able to plan.
If you think you are going to find it difficult to pay for expenses and equated monthly installments due to salary cut or job loss, you must definitely consider opting for a moratorium being offered on your loans. It is also necessary to stop investments unless your financial condition gets better.
The first priority should always be given to get on with your life. Another tip that financial experts offer is to prioritize short-term goals. If you follow this method of approach, you can overcome this situation effectively.
Look for Work-From-Home Online Jobs That Suit Your Qualifications and Experience
Jobless people have to find new jobs. If you are one of them, you can certainly consider looking for online jobs that allow you to work from home. What you need to realize is that every crisis is an opportunity. You can find a work from home job that suits your qualification and experience if you do proper research online.
Are you a person with a fixed income? Did the company cut your salary by 50% or more due to the coronavirus pandemic? You don’t need to panic. There are many types of online jobs available that provide the much-needed extra income to make up the salary cut.
Learn to Live with the Coronavirus and Find Ways to Earn Extra Income Online
How is coronavirus affecting your life? Is it inhibiting you from earning income? It is a fact that coronavirus is making life miserable for most people. The far-reaching consequences of this pandemic will be reflected in the economy for a long time. You need to stay guarded against this virus using the protective equipment and social distancing to a certain extent.
This disease outbreak inhibits several people from earning income. Many people have become jobless. The experts suggest that the COVID 19 pandemic might push half a billion people into poverty. The economic activities are at low ebb nowadays. Many small businesses are considering permanent shutdowns.
You don’t need to panic at this critical juncture. It is time to plan properly. Be prepared to face this crisis boldly. Cut down your expenses and look for a moratorium being offered on your loans by financial institutions. You should also stop your investments temporarily.
This is the time when you need to explore ways to generate more income using online jobs. Offering amazing convenience, online job ideas are getting incredibly popular these days. There are numerous work-from-home job opportunities available that can be used to earn extra income and withstand this economic crisis.
I would like to know your thoughts on the topic? Are you still employed, working from home for your company, been laid off, or trying to build an online business to earn money? You may leave your comments in section below and I will be more than happy to respond.
All the best,
Founder/Creator: Living On Lean Means 💰