Throughout 2019, the American economy saw a period of sustained growth, with record low unemployment figures and even investment in the manufacturing sector, something the country hadn’t enjoyed in more than a decade.
The coronavirus pandemic has halted a full financial year of solid growth and cast a shadow of uncertainty across the immediate future. From Wall Street to Main Street, and everywhere in between, people aren’t asking if things will return to normal, but when. There is a strong belief that our economy can quickly recover and that in the wake of the Co-VID crisis, there will be a number of financial opportunities.
Re-Shaping World Trade And The Influence Of Asia
The sudden impact of the corona pandemic was felt all across the world, and as the different implications of lockdowns and quarantines become apparent, many saw the deficiencies in our trading practices for the first time.
With so much global production in Asia, particularly medical protective equipment in China, many nations experienced rapid price hikes and disruptions in their supply chains as lockdowns impacted Chinese production and the demand for PPE skyrocketed. Local suppliers have appeared to fill in the gaps in the supply chains, and already people are seeing the benefits that can come from a more widely distributed production of critical supplies. Many of these new local suppliers are here to stay, increasing America’s growth in the manufacturing sector.
New Challenges Will Lead To New Legislation
Before the pandemic took hold, people were looking for new ways to increase both state and federal tax revenues to help pay for more investment in social programs like education, healthcare, and social security. After the loss in income tax revenue caused by the crisis, and the cost of tax cuts and credits that the government issued during the pandemic, both state and federal governments are going to need to look for new revenue streams.
Many on Capitol Hill, and in statehouses across the country, feel that the pandemic could speed up cannabis legalization in a number of states yet to legalize, and even on a nationwide, federal level. As more states have taken legalization and decriminalization initiatives, the boost in revenue and reduction in policing costs has benefitted many state governments that find themselves financially stretched. Even the federal government is taking notice.
Many Opportunities And Challenges For Small Business Owners
Small businesses that challenged chain stores, such as locally owned supermarkets, for instance, may face bigger challenges as the economy recovers if they have managed to weather the storm at all. Large corporations are going to be able to rely on their financial reserves and brand recognition to regain their regular level of business quickly, and use offers and advertising to attract new customers.
Entrepreneurs always do well in the wake of an economic depression, but the ‘bricks and mortar’ are becoming too expensive for small businesses to maintain, often for too little return. The gig economy will expand to greater levels than before in 2020/21, and we will see more and more people effectively work four, five, or six jobs on a casual or ad-hoc basis.
The coronavirus pandemic has brought a range of challenges to every home and every nation. The challenges will continue as we begin to recover.