Overview of the current US economic situation (Essay Sample)

Overview of the Current US Economic Situation Student’s Name Institutional Affiliation Course Instructor Due Date Overview of the Current US Economic Situation The COVID-19 pandemic has instigated a series of long-term economic shocks in the United States. Business shutdowns in varying US industry sectors have aggravated pre-existing issues, such as the disproportionate wage distribution already ailing the economy. Besides, since the economic depression over a decade ago, some aspects of the financial structure have not recovered, particularly in the middle and lower classes. Despite the US having a resilient economy that recovered and further attained higher employment levels and GDP than before, inequality in the distribution of economic resources and wages and the COVID-19 pandemic have undermined its financial vitality. The US’s low unemployment rates have created a smokescreen by concealing the poor wage distribution and inequality. US administrations have always boasted about the growth of employment levels since after the economic depression of 2008. However, economists argue that a disparity between varying economic classes undermines financial progression. McCormack and Novello (2020, p. 8) postulate that the top 5 percent of American households had 23 percent of 2018’s income while the lowest class had 3.1 percent. This unsustainable trajectory demonstrates that the average worker receives low wages despite the rising living standards. Furthermore, less than a quarter of US workers earn less than two-thirds of the median salary (McCormack & Novello, 2020, p. 3). Thus, despite politicians citing the increase in employment rates, workers do not receive fair wages, the most critical component of the economy. Since the COVID-19 pandemic began, it has created a ripple effect on the underlying economic problems in the US. Walmsley et al. (2020) estimate that the losses emanating from mandatory business closures and gradual economic reopening would range from 3.2 to 4.8 trillion dollars in 2 years. Primarily, this trend would be elicited not only by business operations but also by low worker input. Because mitigating the pandemic has entailed social distancing and isolation, many people have either been retrenched, fired, or suffered from the illness. With such an issue in the workforce, many businesses and government operations would be adversely affected, particularly having binary impacts on organizations and individuals. Since inequality, unequal wages, and resource distribution have ailed the United States economy for decades, COVID-19 can only exacerbate the low and middle-class financial plight. Thus, the pand...