The U.S. Economy May Never Return to “Normal”
While the U.S. economy has come a long way since last year’s devastating downturn, a return to “normal” may not be possible. Many states have done away with pandemic-related restrictions, but life as it used to be hasn’t fully resumed. CNN Business and Moody’s Analytics Back-to-Normal Index currently sits at 93%, but 100% is predicted to be quite a ways away.
It is possible that the pandemic has changed some fundamentals of the economy in ways that means it’s never going back to “normal.” For example, many people are still working from home and may continue to do so indefinitely, and businesses are less inclined to fly their employees across the country or even the world after a year of successfully conducting business virtually.
Claims for unemployment benefits are still about double what was considered normal before the pandemic, and some states were hit harder than others. All this does not mean that the economy will not regain its pre-pandemic size and strength. However, the U.S. is certainly heading for a new kind of “normal.” (CNN Business, 06.20.21)
While recovery appears to be on the home stretch, a return to the pre-pandemic normal that we were used to is unlikely. Does this news have you thinking about making a business change? Make sure your decisions are informed by research. Schedule a free consultation today or check out our research options here.
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