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by wonderwonder
2044 days ago
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The economy is impacted by people not spending as they were pre covid due to the desire to both avoid contracting the virus in locations they would have previously frequented as well as people saving more in fear of a weakening economy. My savings rate has increased significantly since Covid as I am barely eating out at all due to the risk of contracting Covid via restaurants as well as worrying that the economy could get much worse and wanting to be prepared. I am just an average person so I would assume that there are many hundreds of thousands of people doing the same as me, thus the economy contracts. My state is essentially not shut down at all, so very little impact is due to government regulations and almost all of it is due to personal spending choices. The less restrictions in place, the more the virus spreads and the less money I spend. The economy is highly dependent on people spending and many people dont want to spend right now. |
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