Simply Money

Simply Money

Each weeknight at 6pm, Simply Money makes money simple for you. Join hosts Amy Wagner and Steve Sprovach as they share easy-to-understand and...Full Bio

 

COVID-19's Financial Impact - 4 of 5

How long will it take to recover from the financial impact of the pandemic?

It depends. Based on the information at hand, it is impossible to state when exactly the economy will recover. Importantly, from the Great Depression and the stock market crash of 1929, to the burst of the tech bubble in the early 2000s, to 2008’s financial crisis, the domestic economy has not merely always recovered from crashes and corrections and recessions, but each recovery and subsequent upturn (in both the economy and the stock market) has historically lasted longer than the original downturn. Every single time (since 1913).

While a full economic recovery could either happen quickly (a couple of months), or slowly (a couple of years), or somewhere in-between, the final outcome is entirely uncertain at this point. Again, this is due to constantly changing variables, including how long the pandemic lasts, the introduction of treatments or vaccines, the flattening of the infection curve, or even something that has yet to emerge.

Will the economy recover from the pandemic?

Almost certainly, but a precise timeline for the recovery is not yet known. It is our complete, fervent and unshakable belief that both the U.S. and the global economies will fully recover from the economic impact of the coronavirus pandemic. This is based on our experience dealing with the last four economic downturns, our confidence in the overall economic system (especially here in the United States), and our intimate knowledge of the motivations and hopes and dreams of the people we serve. All of this, along with our underlying general sense of optimism, combines to infuse us with the confidence that our economy will recover from the impact of our response to the corona virus pandemic, and emerge stronger than ever before.

As stated earlier, the duration of what is transpiring – be it a prolonged recession with drastically higher unemployment, the containment or spread of the virus, the introduction of cures, treatments and vaccines, and how long it takes for us to implement and respond (and whether we respond too quickly or two slowly) – all will impact the speed at which our economy recovers. And while it might not be easy or immediate, we are all supremely confident in our belief that our economy will fully and completely rebound.


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