Economic Effects Resulting from SARS-CoV-2

Abstract

As the first global pandemic in over 100 years, SARS-CoV-2, better known as the coronavirus, wreaked havoc on the world in 2020. Looking at the virus’s lifespan and its consequences for major world economies shows significant variations in the effects on the United States and the People’s Republic of China. A close investigation of the changes in macroeconomic factors, specifically the unemployment rate, gross domestic product, and the national and external debts of each country throughout the year show just how differently the virus affected each nation. The reasons behind these differences are found to be in variations of economic theories, government systems, and political affiliations. The People’s Republic of China is a socialist republic with a communist economic theory. Chinese citizens hold a mindset of concern for all other people and the good of the whole. Accordingly, Chinese citizens were quick to comply with safety recommendations and follow social distancing guidelines. Conversely, the United States of America is a democratic republic with a capitalist economic theory where citizens hold a mindset of individual freedom and personal gain. Under the American government, citizens tend to exercise their individual freedom and resist COVID-19 safety mandates. Political affiliation, whether Republican or Democrat, also played a key role in American citizens’ willingness to comply with safety regulations. The differences between the Chinese and American adherence to safety restrictions resulted in a drastic distinction in the pandemic’s duration, lifespan, and resulting effect on the countries’ economies. In order to eradicate the virus as quickly as possible and begin healing the American economy, United States citizens should adopt the Chinese mindset of cooperation and model their quick actions in mitigating the spread of the virus.