Tampa, Florida 2021-06-16 16:24:24 –
Many experts are accelerating predictions about when our economy will return to normal.
According to Moody’s Analytics and CNN, our country has returned 88% to its pre-pandemic economy, and states such as Idaho and South Dakota are doing better than they were before the COVID-19 outbreak.
Elise Gould, Senior Economist at the Institute for Economic Policy, said:
Looking back on last year, I heard a lot about the letter about how to predict an economic recovery from a pandemic, U, V, K-shaped recovery.
Things are expected as it is the recovery of K and the widening gap between those who have and those who do not, which gives some of the population more money to stimulate economic growth. That’s why it might get better sooner.
According to the Bureau of Economic Analysis, the US savings rate prior to COVID-19 in January last year was 7.9%, the money hidden after invoices and spending.
When COVID-19 hit in March, its number soared to 12.6%, and a month later, in April, when the blockade began, spending fell by 12.6%, so its number soared to 32.2%. ..
“We have decided to save more. We will be more cautious about spending options,” said Dennis King.
King and her husband, Darrell Bowford, were two of those people. They did not downplay the immense difficulties faced by many in the country. The unemployment rate rose from 3.5% to nearly 14.8% in two months, but the couple wondered if they could get rid of some money as an unprecedented emergency fund.
Over the next 12 months, King and Bowford were able to save $ 30,000 and at the same time donate more than $ 5,000 to charities that benefit the underprivileged.
“I’m worried that if people get out of the debate or aren’t invited to the table for economic recovery or resource input, some people will be left in the dust,” King said.
But not only did savings increase, but debt plummeted. According to a recent study by WalletHub, Americans were able to repay more than $ 80 billion in credit card debt in 2020 and more than $ 56 billion in the first quarter of 2021.
As a result, more spending was incurred as the country began to shift its focus to something similar to post-pandemic norms.
“Fiscal spending was the key to accelerating this recovery,” Gould said. “So, my calculations show that if we continue the trajectory we’ve been doing every month, we can actually drop to 3.5% unemployment by the end of 2022.”
According to Gould, the ongoing stimulus from Congress was a game changer because it provided continuous relief to people and businesses, rather than temporary relief from temporary payments.
The more people spend and the more businesses build, the more staff they can rehire, and those so-called “not having” people can feel some relief, she said. Says.
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