Assume the role of an economic advisor to Steve Forbes. Using this week’s required resources and at least two additional credible sources, prepare an 8-10 slide audio PowerPoint presentation, with speaker notes, to communicate with Mr. Forbes about the pandemic’s causes and responses.
Address the following questions in your presentation:
What was the economic impact of COVID-19? Address any monetary and fiscal policies used during or after COVID-19.
Has the crisis changed the structure of the U.S. economy?
Were there differences between countries on how they handled the crisis? Provide at least one economic policy example.
What economic advice would you give Mr. Forbes to avoid difficulties in similar situations?
In this presentation include an additional section with the following:
Explain economic activity during or after COVID-19 using research from the library and/or an online article. Be sure to include the reference material for the article.
Analyze the underlining fiscal and monetary policies (if any) inherent within your selected article.
Summarize the economic principles you have learned from your selected article and how they could apply to modern government policy.
Full Answer Section
Sectoral Disparities:
- Impact was highly uneven. Sectors requiring physical proximity (e.g., hospitality, entertainment, retail) were devastated, while others (e.g., e-commerce, tech, healthcare equipment) saw booms. This exacerbated existing inequalities.
Inflationary Pressures:
- Post-initial shock, massive fiscal and monetary stimulus combined with persistent supply chain issues and changing consumer preferences led to significant inflationary pressures globally, peaking in 2022.
[Speaker Notes: Mr. Forbes, the initial economic impact was characterized by an abrupt halt in activity due to necessary public health measures. This wasn't a typical recession. It was a simultaneous hit to our ability to produce and our willingness to consume, particularly services. We saw record-breaking declines in GDP and an unprecedented surge in unemployment. Importantly, the impact wasn't uniform; some sectors like travel and dining were decimated, while online retail and technology thrived. This unevenness continues to shape our recovery, and the subsequent surge in inflation has been a significant challenge for consumers and businesses alike.]
Slide 3: Monetary Policy Responses (U.S.)
The Federal Reserve's Unprecedented Actions:
- The Fed responded aggressively, implementing tools seen during the 2008 financial crisis but on a larger scale, and introducing new facilities.
- Near-Zero Interest Rates: The federal funds rate was cut to effectively zero (0-0.25%) in March 2020.
- Quantitative Easing (QE): The Fed massively expanded its balance sheet, purchasing trillions in Treasury bonds and mortgage-backed securities to inject liquidity and lower long-term interest rates.
- Emergency Lending Facilities: Re-established and expanded facilities to support credit flow to households, businesses, and state/local governments, preventing a credit crunch (e.g., Primary Dealer Credit Facility, Commercial Paper Funding Facility, Main Street Lending Program).
- "Whatever It Takes" Stance: The Fed signaled strong commitment to supporting the economy, providing confidence to markets.
Goal: To prevent a deeper financial collapse, ensure liquidity, and support economic recovery by making borrowing cheap and abundant.
[Speaker Notes: The Federal Reserve's response was swift and massive, mirroring some actions from 2008 but significantly expanded. Cutting interest rates to zero and engaging in large-scale asset purchases were standard play. More critically, they reactivated and created various emergency lending facilities to ensure that credit markets didn't seize up, which was a major concern. This "whatever it takes" approach was crucial in stabilizing financial markets and preventing an even worse economic spiral.]
Slide 4: Fiscal Policy Responses (U.S.)
Massive Government Stimulus:
- Congress passed several unprecedented legislative packages to provide direct relief and economic stimulus.
- CARES Act (March 2020): Over $2 trillion, including direct payments to individuals, enhanced unemployment benefits, Paycheck Protection Program (PPP) for small businesses, and aid to states/local governments.
Sample Answer
Slide 1: Title Slide
Title: The COVID-19 Pandemic: Economic Impact, Responses, and Future Preparedness
Subtitle: A Briefing for Mr. Steve Forbes
Presented by: [Your Name/Economic Advisor Title]
Date: July 22, 2025
[Image: A subtle background image depicting global economic charts or a world map with economic indicators.]
Slide 2: Economic Impact of COVID-19
The Initial Shock & Recession:
- The COVID-19 pandemic triggered a unique and severe global economic shock. Unlike typical recessions caused by demand or supply imbalances, this was a "dual shock" from both supply and demand sides.
- Supply Shock: Lockdowns, factory closures, and supply chain disruptions severely limited production and distribution.
- Demand Shock: Fear, uncertainty, and income losses led to sharp declines in consumer spending on services (travel, hospitality) and some goods.
- Sharpest Contraction in Decades: The U.S. economy experienced its sharpest quarterly contraction on record in Q2 2020. GDP plummeted, and unemployment surged, reaching 14.7% in April 2020. This was unprecedented in its speed and depth.