Even with theand one on the horizon, bouncing from the The recession, considered the fastest recession in American history, “will not be quick or easy. The US economy broke records plunging 32.9% in the second quarter, according to data released by the Commerce Department (PDF) this week.
Among the factors contributing to the problem is thewhich erupted when states began to randomly reopen after the lockdown. State governments across the country then lobbied their plans to reopen and many even turned the tide, temporarily shutting down businesses like restaurants and bars just weeks after they opened.
If you find yourself among the millions of Americans who have struggled economically due to the coronavirus pandemic, many of the economic safeguards put in place at the start of the lockdown have either, which makes matters exponentially worse. A renewal of and are the main issues debated in a second stimulus payment.
So what does the path to economic recovery look like from here? We’ve put together the latest news on the coronavirus recession, where to go for help, what makes a recession and the government’s response. Note that this story is meant to provide insight, not to serve as financial advice. It updates frequently as the situation evolves.
Latest news on the coronavirus recession
Where to find personal financial resources to help you prepare
If you’ve been struggling financially due to the coronavirus recession, here are some tools to help you get back to your financial health.
When will the recession end?
Unfortunately, we do not have the answers to this question. From an economist’s perspective, a recession ends when certain market demands are met. From a personal standpoint, you perhaps wonder the most about your ability to work, pay your bills, and secure your financial future.
Economists and experts agree the economy will not recover until the coronavirus pandemic is contained – withoutwhen the lockout measures are lifted. This will happen either by , an effective treatment for , a or a combination of all three.
Several candidate vaccines have shown promise in human trials. Even so, it may still be a year or more before anything is approved for widespread use. The development of a coronavirus vaccine is rapid and the details change daily.
How the government tried to support the economy
thepassed as part of the CARES law in March represents the US government’s first attempt to thwart a recession. The Economic Relief Law included for most U.S. taxpayers, as well as a loan program to keep businesses paying their employees.
A debate on ais currently making its way through Congress, but still appears weeks away from being finalized. Meanwhile, the Federal Reserve has indicated that it will continue to keep interest rates close to 0% for the foreseeable future, which often has the effect of encouraging more borrowing, leading to more spending. – and more spending generally improves the economy.
How can I help?
It’s easy to feel helpless, but if you feel financially secure or have the time to give, there are ways you can make a difference. My CNET colleague Katie Conner has some great recommendations for, including free contributions like online volunteering or donating blood, as well as ordering takeout or delivery, and purchasing restaurant gift cards.
Other local businesses such as bookstores, garden centers, toy stores, and boutiques may have a website that you can support them with with a home order, if they remain closed.
The best advice I’ve heard so far on how you can individually help support the economy is: Spend to the best of your ability and within your means.