Coronaviruses (CoV) are a large family of viruses that cause illness ranging from the common cold to more severe diseases. A virus is a parasite made of genetic materials (DNA or RNA) and surrounded by a capsid made of protein. As a parasite, the coronavirus needs a host like human cells to replicate more viruses. Typically, these viruses spread within animals but can be pass on to humans. The current Coronavirus spreading is named COVID-19 and supposedly came from a meat market in China in December 2019. Vaccines are the best medicine to combat viruses but take a few years to approve for the public.
The economy of the United States nor the world was prepared for a virus. A virus causes death and panic which leads to irrational behaviors by investors. Printing more money and lowering interest rates will only due so much to stimulate the economy. Commercial and residential real estate will be both get affected.
The virus does not care about the economy and businesses in the United States are not prepared for the Coronavirus.
What is the current situation?
COVID-19 has spread across the world by starting in China in December 2019 and is in the United States. China, South Korea, Italy, Iran, Spain, France, and Germany have major outbreaks. Based on data from the whole world, you have a 3.5% chance of dying if you do catch COVID-19 based on the number of people who died divided by the number of total cases. Different countries have their own mortality rate. COVID-19 is mainly killing adults older than 60 and some. Cases are probably much higher as many may have low symptoms and have not been officially confirmed to have the virus. COVID-19 has spread across the United States, but only minor outbreaks are reported.
On January 23rd, a month or so after COVID-19 started, China has place Wuhan, a city of 11 million people under lockdown. All of Italy has been placed under lockdown on March 10th. Other countries that have huge outbreaks are canceling schools, social gatherings, and travel. Throughout the United States, many events are being canceled and travel has significantly decreased. Many countries around the world are banning air travel especially from countries with major outbreaks.
COVID-19 is a serious threat to the economy of the World and the United States. Many countries have been affected and will show lower GDP growth in 2020 Q1. Depending on the severity of the Coronavirus, the upcoming recession could easily become a depression.
The United States administration looks at the economy as a whole than one individual alone.
If the cost of a certain number of deaths is cheaper then the economy entering the recession, the United States government will choose to ignore proper protocols like mandatory quarantine and public awareness. The administration rather have some deaths along with a small recession then no deaths along with a big recession. Adults older than 60 are significantly at risk by dying from COVID-19 so the majority of the American population will survive the virus.
Only time will tell if the United States will have a major outbreak. Even without a major outbreak, the United States economy will be negatively affected by the coronavirus. The United States economy is connected to the World’s economy and will be affected due to major outbreaks in other countries. A recession in the next few months for the United States and the world is highly likely. The matter of how deep the United States recession may be tied to how long the threat of COVID-19 will last.