Friday, May 8, 2020
Accepting diverse economic recoveries, and the lack of campus experience due to Covid-19 recession
More than 30 days ago, students in most colleges and universities were told to pack up for the semester. At ASU; NAU; and University of AZ, students packed up their belongings
and went home for the semester. Students were told that the rest of the semester involves classes done through Zoom web conferencing software. For students, classes are online regardless of your freshman or senior year. The campus experience is over due to Covid-19. Yet, students at 25 colleges are suing, as they feel the learning is not worth the cost. The class discussion is not happening, as campuses closed. Students at renowned institutions, such as Drexel; Univ. of California; and Vanderbilt Univ.; are frustrated with learning about their core curriculum on Zoom. Now, universities might change this process as some universities will open in Fall 2020. Students at ASU and University of AZ will be allowed to come back to campus. Purdue University in Indiana is one of the first campuses to reopen for students, when they announced this big decision in late April 2020. In other college related news, the summer internships that students desire is decreasing. The unemployment in the US rose to 14.8% today, for April 2020. Companies are not hiring, and more than 30 million people filed unemployment claims since middle of March 2020. The graduating class of Spring 2020 is looking at a bleak job market. The unemployment level is worse than the Great Recession, which lasted from 2007-2009. What type of economic recovery will take place, to end this coronavirus recession? Next, economists are debating if the economy will have a U-shaped, V-shaped, W-shaped, or L-shaped recovery. The u-shaped economic recovery happened with the Great Recession. The first quarter 2020 gdp rate was -4.8%, and this negative growth will continue through 2nd quarter of 2020. The worst case scenario for the economic recovery is the L-shaped one. In this scenario, the economy sinks and stays on the floor for a prolonged period of time and then either does or doesn’t return to its former state. Japan experienced this dire situation in 1990, and this dreadful period lasted for almost a decade. In this penultimate paragraph, let's discuss some more types of economic recoveries. The nike swoosh recovery states that spending slowly resumes, with economic limits eased much more gradually than they were imposed. Also, the level of economic output stays beneath the level of its pre-crisis trend well into 2021. This situation means there’s a lack of animal spirits as people remain cautious of over-spending, or taking long-distance trips. Two more types of economic recovery are j-shaped recovery, and inverted-square-root-shaped recovery. Let's hope the latter type of recovery does not happen. Finally, is there an escape from all of this depressing news? Movie theaters will not play any new movies for another 60 days in the USA. More than 40 states have reopened for business, and the new normal will have a different definition. Social distancing may continue until early 2022, according to a Harvard University T.H. Chan School of Public Health study from April 2020. See the picture of a v-shaped recovery on a global scale, at the above spot. Good day everyone!
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