Who benefited financially during the lockdown?
Corona virus: 'Lockdown was insane, but also financially rewarding'
The coronavirus epidemic has hit the global economy hard, but has benefited some people personally.
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Paula, a mother of three, says her financial situation has improved since the lockdown
After a lockdown in the United States in March, Paula, a mother of three living in New Hampshire, repaid a loan of about ڈالر 20,000 that had been paid to her credit card after an unexpected change of employment.
Paula, 35, lost her job in June, but her husband was still employed. He benefited from a اد 600 weekly payment approved by Congress to help the unemployed in response to the epidemic crisis.
He used the money to pay off his credit card debt. It also saved children's school fees. He says that she was already frugal, this habit became even more entrenched in the days of crisis. Their biggest luxury is riding a bicycle.
"Cortina proved to be good for us," she says.
"We stayed at home, it was insane, pure insanity, but I think it benefited us financially."
Increase savings
In the US, personal savings rose a record 33.6% during February-April, nearly four times the normal.
Although the lockdown has eased since then, coronavirus funding has increased people's savings. The personal savings rate in August stood at 14.1%, the highest in the country since 1975.
Rising savings pushed Americans' household wealth to record levels in the May-July period, while total debt fell for the first time since 2014.
Economist Sarah Johnson says: "The unique thing about this situation is that government programs have led to an increase in personal income, while business closures have reduced spending opportunities, resulting in a rate of personal savings. It turned out to be an increase.
The difference between rich and poor
But that will only change when government aid stops.
In the US, سرکاری 600 a week government aid stopped in July, and politicians in Washington are unable to decide on further aid.
During a hearing in Washington this month, the head of the US Federal Reserve pointed out the dangers ahead.
"There's been a lot of savings," said Jerome Powell, chairman of the Federal Reserve. But 11 million people have lost their jobs, and their livelihood will now be on savings, which will reduce spending. It will have a negative impact on the economy. "
Government support has narrowed the gap in household personal savings, but research shows that wealthier households, who are less likely to lose their jobs and lower their incomes, have saved more.
As government funding declines, the gap between rich and poor will widen as the unemployed will have to rely on their savings to meet their daily expenses.
'Emergency fund'
In such a scenario, economists are warning that wealthy families will keep their spending low until health concerns subside and the economy improves.
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John F. Kennedy lives in Tennessee with his wife and two children
John F. Kennedy, a Tennessee resident, and his wife are both involved in education. Since March, she has saved between سے 2,000 and 4 4,000 a month because she doesn't have to spend on childcare, office lunch and coffee, and so on.
Childcare costs will start again. But he says he will keep other spending very low given the uncertainty of the economy.
"We've saved a lot more than before because we can do it, but now we feel we have to save," he said. We are both employed, but what happens in the next six to twelve months will depend on whether our savings become our emergency fund.
Two-thirds of America's economy depends on people's spending, so over-saving is not good for the country's economic health.
"The global epidemic has hit people's spending hard, and this sector of the economy will determine the direction and pace of economic recovery," said Sarah Johnson.
People's spending began to rise in the summer, raising hopes that recovery would be quicker. But since then, its pace has slowed.
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