Document Type


Publication Date

Spring 2020


The global economy is undoubtfully under threats of the novel coronavirus. Government and local authorities have taken precaution measures to mitigate the spread of the virus. Shutdowns and social distancing restrictions, taken in the context of fighting the spread of the virus, have prompted an unpredicted slowdown of the global economy. In the United States, the economic disruptions due to the pandemic have terribly increased the unemployment level. About 22.034 million of Americans have filed for unemployment benefits since March 21, 2020 (Mutikani, 2020). In addition, working hours have been reduced. Small businesses, such as food and beverage services, hotels, bartenders, stylists, car services, and barber shops, to name just few, have closed doors as people are locked in. Predictions from St. Louis Federal Reserve show a total employment reduction of 47 million, which is the equivalence of 32.1 percent of unemployment rate for the next two quarters (Cox, 2020). Millions of Americans lost their purchasing power during this coronavirus crisis, causing the gross domestic product to continue falling, given that 70 percent of the gross domestic product comes from the consumer spending, (Merrefield, 2020). Forecasts show that “the American gross domestic product should fall by 30.1 percent in April-June, driving up the unemployment on an average of 12 percent over the same period” (Kennedy & Bloomberg, 2020).

Is Part Of

Student Papers in Local and Global Regional Economies