It may not seem like it right now, but apparently the U.S. economy is primed for a serious boom once we get COVID-19 in the rearview mirror.
Both Bloomberg and the Wall Street Journal have come to similar conclusions. The argument is that Americans who have kept their jobs “have accumulated $2 trillion in new savings deposits since February,” notes WSJ. “That is more than 10% of gross domestic product waiting to be spent.”
Once it’s safe to start shopping again, service workers who lost their jobs last spring will be in demand and wages—which Bloomberg notes are already near pre-pandemic levels—will rise quickly.
“There is no society better prepared for what awaits,” notes WSJ. “America had a rough year, but we might look back on 2020 as the start of a new, even more resilient, more inclusive, and more sustainable boom.”
You can read the Wall Street Journal’s analysis here, or read the article in Bloomberg here.