How COVID-19 has affected the economy
Since March, the US economy has been greatly affected by COVID-19. Unemployment levels have skyrocketed. According to a study by the University of California, as much as one-third of the US economy may be shut down and real unemployment levels may have rise to 25%. The federal government has responded with a $2 trillion relief package, as well as an additional $2.3 trillion for small businesses and local governments from the Federal Revenue Board. The impact of COVID-19 can not be overstated.
In Minnesota, it is expected that the economy will lose $1-8 billion in tax revenue in 2020. The downturn on the economy will affect many Minnehaha students who may have been planning to work and earn money this summer.
Although most businesses have been open for curbside pickup and takeout, many small businesses and restaurants have been forced to shut down due to a lack of income, including Izzy’s Ice Cream St. Paul location, The Bachelor Farmer in northeast Minneapolis, and Bar Luchador in Stadium Village, to name a few.
According to Liz Rammer, CEO of Hospitality Minnesota, up to half of Minnesota’s bars, restaurants and hotels may face permanent closure in the next two months because of the coronavirus. This will greatly affect many Minnesotan’s lives and will limit job opportunities this summer and in the near future.
“With the possibility that things may not be open this summer, many students, including myself, have been struggling to decide whether or not to even apply for a job,” said sophomore Tessa Bianchi. “This is disappointing as with a job, many teenagers are able to earn money, learn life skills, and benefit the economy in the future.”
The outlook is uncertain and there are many disputes concerning the end of the COVID-19 outbreak. Some say that most businesses will reopen this summer and some say that the virus could last up to two years, with on and off lockdowns.