Impact of the Policies Implemented by the United States in Response to the COVID-19

Abstract

The global and American economies have been completely upended by the coronavirus disease pandemic, which has killed a sizable number of people and forced the closure of vital industries. As a result of the pandemic, there have been more business failures, less private investment, less value chain integration, and a loss of both human and productive capital. Even though there is uncertainty surrounding the outlook for U.S. economic growth, the outbreak has had a significant impact. As a result, the US has released numerous policies in response to COVID-19 to support the country's economic recovery. In addition to research data from some books and websites, this study analyzes data from the Federal Reserve's forecast of the US gross domestic product. The primary focus of this study is on the economic policies implemented by the United States to promote economic recovery following the outbreak of the COVID-19 pandemic. At the same time, research how these policies impact the recovery of the US economy. Research has shown that the COVID-19 pandemic has hampered both the production and consumption capacities of consumers and businesses. The American government has implemented a significant fiscal stimulus in response to the economic unrest. Given the effectiveness of these policies in increasing consumption and the relative supply inelasticity, supply chain bottlenecks and elevated prices may result. However, it should be acknowledged the beneficial impact that the government's generous assistance has had on this historically significant crisis. The US government's CARES Act, which it passed in response to the recent crown epidemic, and the Federal Reserve's monetary policy tools have started to influence the US economy's recovery.