It seems we are going to be speaking about the Coronavirus for a while. Unfortunately, not only the business in the US but all over the world is collapsing due to the disease. Actually, when it comes to America, business activity fell last month. This is the first time Americans have to face this since 2013! Despite the warnings made by Goldman Sachs, the government was skeptical about how Coronavirus would affect the United States. Some even came to think about this as positive.
It is the case of Wilbur Ross, Donald Trump’s secretary of commerce, who stated that perhaps the situation of the Americans would change for the better. According to him, the people of the United States would have the chance to get more jobs because of the current situation in China. Obviously, the statement was received with a lot of criticism. Not only that but now we finally have the proof that Ross was wrong. The fact the US financial markets are falling is something that no one can ignore by now.
The situation with business in the US
Firstly, when it comes to business in the US, it was reported that there is a “notable worsening” in the services sector, which includes finance and retail. This is something totally predictable since these are also the areas in which the economy is suffering in China. According to a survey, the US manufacturing output was hurt by delivery delays from China. It happened because their services industries such as travel also took a hit.
People do not get the chance to go outside in some places. Besides, many factories and stores are not functioning as they used to. It is normal. People are scared of going out to do anything, including to work. That being said, when people are not leaving their houses to do the bare minimum, we can also infer that they will not be traveling that much. Because of that, for instance, institutions that would benefit from tourists’ money are not profiting that much.
With all those issues at stake, we hope to have made clear why business in the US is suffering. This is something problematic that is happening because of trade deals, but this is not everything. This is an opportunity to reflect on how we depend on each other. When one of us is thriving, we all have the chance to benefit from external success. However, when one of us suffers, we also have the chance to experience a small (or big) portion of problems. Thus, it is not adequate to state we will have the chance to get something good from all of this, as Ross, unfortunately, did.