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US Economic Recovery Means Help For Other Countries

2020 appeared to be the year that we would not imagine to happen. If someone had told at the beginning of 2020 that in two months the whole world would be in the lockdowns and people would not be able to go out, the reaction would have been sarcastic. However, it did happen and affected every single industry in the whole world that lead to the economic crisis because a lot of businesses were closed as they were unable to continue working online. Some people might think that economically rich countries would not have trouble because their capital is very high, however, even with the world’s first economy, the US was facing job shortages and inflation rate. However, the strong side of such kind of economies appeared when they started the recovery process and were able to provide the effective ways and process of vaccination. The US is one of the leading countries in this case and the number of people who are vaccinated daily is more than 3 million. It directly means that businesses are ready to open as the vaccinated people are not as dangerous to each other as not vaccinated ones.

The US assists Canada with the help

The US economic recovery appeared to be strong enough to not only help its own businesses and population but other countries as well. This list appeared to be Canada as well and it means that Canadian businesses and population will receive help from the US Federal Reserve. The Chairman of the Federal Reserve hopes that the economic surge in the US and new jobs will be spread not only over the country but will leave the borders as well. He seems also to have persuaded the world’s financial markets that a global boom would not result in an equal increase in long-term inflation or interest rates.

Due to the fact that the economic crisis caused the job shortage, people who were already working had to leave their jobs as it was impossible to work from home/online. People were left only on the hope for the stimulus package or minimal income, and this is when they were forced to start finding alternative sources of income. Surprisingly or not, the financial market appeared to be ready to satisfy people’s demands as they were given the opportunity to generate profits from their own homes, without even going out. Most notably, the demand was increased on the crypto-industry and forex market as well, after that stock and bond trading, which lead to the increased demand on the Canadian Forex Brokers but not only. This means that the fund started to move and the deficit was not as high as it was expected to be. However, on the other hand,  we can say that the interest rate in the bond market has declined. This is a positive sign for the Canadian borrowers because commercial yields in the United States aim to drive up mortgage and other debt prices in Canada.

Global Support from the US

The possible economic uprise from the economic recovery in the US was expected to be about 4.5 % but the events now show that the uprise by 6.5 % is very realistic. There are four major factors that can help to cause the positive uprise, more positive than it was expected to be. First, it is the 1.5 trillion dollar stimulus package, that will play a key role in economic recovery. Secondly, it is the monetary stimulus from the federal government and also accumulated saving by consumers. Last but not least this is the strong vaccine rollout.

The pandemic shock caused the price of fuel and certain other commodities to plummet about a year ago. Inflation data will seem to reflect a dramatic increase from year-ago levels now that petrol prices have returned to normal. There is also one major factor for the economic recovery which is the high speed of the vaccination, as people are starting to go out in the restaurants, travel by plane, or increase demand on the manufacture. All those will cause the increased demand in this certain field and the economy will start the move.

The one thing that was not affected by the economic crisis were supermarkets and goods that are vitally important for our everyday lives, but it also caused great problems as the demand was dramatically increased but the import and export volumes were decreased in quantity or was strict due to the pandemic restrictions. The US example has shown how important it is for the country to produce enough products in the country in order to come out of the crisis effectively.

Summing It Up

Finally, to sum up, the whole world has undergone a major challenge and we cannot say that the economy of any country was ready for that. However, some of the countries, because of the correct planning of the recovery policy are able to overcome this obstacle more effectively than others. It is no surprise that the US appeared to be the forerunner in this case as it is the world’s first economy and there are several reasons, that were mentioned above that helped the country to perform so. As a result, it is not only able to help its own business but also spread its assistance over other countries, most importantly Canada as their economic ties are very strong and economically strong neighbor is good for the US as well.


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US Economic Recovery Means Help For Other Countries

One comment

  1. Missing Context
    Independent fact-checkers say this information is missing context and could mislead people.

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As Santa Clarita’s only local radio station, KHTS FM 98.1 & AM 1220 mixes in a combination of news, traffic, sports, along with your favorite adult contemporary hits by artists such as Rob Thomas, Taylor Swift, Katy Perry and Maroon 5. We are vibrant member of the Santa Clarita community. Our broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. We stream our talk shows over the web, reaching a potentially worldwide audience.