After leaving the hospital in the afternoon, the United States President Donald Trump downplayed the coronavirus’s severity. He said that we should not let COVID dominate our life. Furthermore, Trump added that we should not be afraid of COVID-19. Nevertheless, economists stress that the course of the virus will lead the way for the economy. The situation is that the United States is far away to be back to business as usual.
Later Monday, Trump tweeted that the stock market is up big with 466 points! 28,149. It is great news for America.
Nevertheless, under the Trump administration’s push to reopen the economy, the economy has mostly faltered. They dismissed to use of social distancing and the use of masks to stem coronavirus infections. The unemployment rate is hovering at just under eight percent. The economy’s total output of services and goods, or gross domestic product (GDP), decreased by an annualized rate of thirty-one percent in three months that ended in June. Meanwhile, threatening another period of slow economic growth, coronavirus cares are on the rise in nearly two dozen states.
Until election day, there is less than a month. Coronavirus diagnosis of Trump might significantly impact voters’ views of how effective the administration’s public health policy has been through the pandemic. That is what Mauri Obstfeld said. She is an economic professor at the University of California, Berkeley. Moreover, she is a chief economist at the International Monetary Fund.
Obstfeld said that they would not fully get the economy back on track until they could better control the virus. Trump’s diagnosis illustrates that it is tough to insulate yourself from infection possibility if you are outside and active. Obstfeld said that they do not want to lock down the entire economy again. It is because it was not effective last time. Nevertheless, they must proceed with caution and not just open willy-nilly, boosting the economy numbers.
The White House rushed to reopen the economy. Thus, it resulted in two entirely different economic pictures on Main Street and Wall Street. Companies soared a striking $496 billion in acquisitions and mergers. Consequently, Wall Street stocks have soared over the summer. Meanwhile, more than 211,000 people in the United States have died from the coronavirus. More than seven million people have been reported to have tested positive.
News of the departure of Trump from Walter Reed National Military Medical Center provides a level of certainty for investors, especially for Wall Street. Nevertheless, Main Street waits for extended unemployment assistance. It is because lawmakers debate an additional round in bonus unemployment benefits. It is because bills come due for millions of families.
Sandra Black is a member of the Council of Economic Advisers in the administration of President Barack Obama. Black said that people need help. Furthermore, Black added that Congress needs to provide money for families. Through programs such as expanded unemployment insurance, cash to state and local governments, and cash to households. Unfortunately, the pandemic has exposed all the weaknesses of the United States social safety net.