Economic situation in the USA: current and supposed outcomes of crisis
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Economic situation in the USA: current and supposed outcomes of crisis
Annotation
PII
S268667300009426-8-
Publication type
Article
Status
Published
Authors
Victor Supyan 
Affiliation: Institute for the U.S. and Canadian Studies, RAS
Address: Russian Federation, Moscow
Edition
Pages
54-62
Abstract

In a presentation it is ascertained that the US Economy has entered a phase of a next economic crisis. The scale of GDP downfall is estimated by 6-12% during 1st quarter of 2020. The unemployment level increased from 3,5% in March to 6,5% in April of 2020. The stock exchange indexes have fallen down by 35% during first two weeks of economic downfall. Among most affected industries are restaurants, hotels, recreation. There is also decline in manufacturing production.

The US Government undertook several anticrisis measures. They are directed to limit pandemic as well as to support the economy. The first direction is realized on the state level and supposed to use a concept of social distancing. The second is realized on federal level and aims to provide an assistance to citizens and businesses. It is supposed to provide assistance to healthcare system ($400 bln), an assistance to unemployed and all citizens ($500 bln), and assistance to small business ($350 bln) and to corporations ($500 bln). According to some estimations the additional financial programs may account for about $6 trn.

The forecasts of crisis development vary significantly – from 3 to 12% reduction of GDP in 2020. The unemployment is expected to be double-digit.

It is possible to assume some long-term outcomes of current crisis. One of them is spread of “on-line” office work as well as “on-line” retail. It may lead to additional increase in unemployment. Growth in distance learning is also may be expected. From the economic standpoint one can expect the increase of government involvement into economy, especially in a sphere of healthcare and social security.

The presentation makes a conclusion that the American economic model has sufficient potential to overcome the current crisis. Of course, some economic and social losses are inevitable.

Keywords
economic crisis, pandemiс, GDP, unemployment, government assistance, economic forecasts, long-term outcomes
Received
08.04.2020
Date of publication
08.05.2020
Number of purchasers
37
Views
2039
Readers community rating
0.0 (0 votes)
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S268667300009426-8-1 Дата внесения правок в статью - 24.04.2020
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