CBO says COVID-19 recovery for the U.S. economy will take about 10 years
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The Congressional Budget Office is out with some grim projections, saying the U.S. economy won’t recover from the coronavirus pandemic until 2029 — and the recovery won’t begin until next year.
The CBO projects the COVID-19 pandemic will cost the U.S. almost $8 trillion in lost economic output this decade, down 3% from pre-pandemic projections.
The agency says that consumer spending will decline amid high unemployment, and while many out-of-work Americans will get back to work starting this summer as states reopen, the CBO expects it will take a decade for employment to return to pre-pandemic levels.
The agency says until there’s a coronavirus vaccine, some amount of social distancing will likely be with us for the foreseeable future, and that will slow the recovery.
The projections incorporate the more than $2 trillion in financial assistance the federal government has doled out.
The CBO says a lot of uncertainty remains about the pandemic’s effect on the economy, as well as the effect of the financial rescue program. Its projections are likely to change, as those are better understood.
COVID-19 Economy FAQs
Can businesses deny you entry if you don’t have a vaccine passport?
As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.
Give me a snapshot of the labor market in the U.S.
U.S. job openings in February increased more than expected, according to the Labor Department. Also, the economy added over 900,000 jobs in March. For all of the good jobs news recently, there are still nearly 10 million people who are out of work, and more than 4 million of them have been unemployed for six months or longer. “So we still have a very long way to go until we get a full recovery,” said Elise Gould with the Economic Policy Institute. She said the industries that have the furthest to go are the ones you’d expect: “leisure and hospitality, accommodations, food services, restaurants” and the public sector, especially in education.
What do I need to know about tax season this year?
Glad you asked! We have a whole separate FAQ section on that. Some quick hits: The deadline has been extended from April 15 to May 17 for individuals. Also, millions of people received unemployment benefits in 2020 — up to $10,200 of which will now be tax-free for those with an adjusted gross income of less than $150,000. And, for those who filed before the American Rescue Plan passed, simply put, you do not need to file an amended return at the moment. Find answers to the rest of your questions here.
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