Tagged: COVID-19

Effects of COVID-19 on Jobs and Income

An investment magnate and former resident of Belvedere, California, Michael T. Jackson pillars his California community. As a professional, Michael T. Jackson is interested in the effects of economic inequality, an issue that has been recently heightened by the pandemic.

Income, wealth, and economic inequality are not rare in the United States. However, the COVID pandemic has ravaged the country, causing lockdowns. As a result, most people in the middle and lower classes were unable to work and had to rely on savings to pay for rent, food, or other daily necessities. During the first months of COVID, the highest income workers had the lowest job loss (96 percent of jobs were kept), while lower-income workers had the highest job loss rate (81 percent of jobs were kept).

The federal government passed stimulus relief packages, and states offer unemployment benefits. However, still, it is not enough to mend the severe economic inequality Americans face and have faced every day. In June of 2021, Forbes published an article detailing the stimulus packages and how they boosted the economy effectively. The research was inconclusive as it is also possible that the Economic Impact Payment contributed to some economic growth. The Congressional Budget Office stated that the stimulus checks might have increased economic output by 0.6 percent under the Cares Act, while unemployment benefits boosted the economy by 1.1 percent.