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
- ector-Specific Hardships: Industries relying on physical presence and social interaction, such as travel, tourism, hospitality, and retail, faced immense hardship and closures.
- Consumer Behavior Shift: A rapid shift to online consumption occurred, though it couldn't fully offset the overall decline in consumer and retail activity.
Speaker Notes: Mr. Forbes, the initial economic impact was characterized by extreme uncertainty and a "dash for cash" as financial markets seized up. This was not a typical demand-side recession but a forced supply-side shutdown, with significant demand-side consequences. The speed and depth of the downturn were truly unprecedented.
Slide 3: Monetary Policy Responses
Content: The Federal Reserve acted swiftly and aggressively to stabilize financial markets and inject liquidity into the economy.
- Interest Rate Cuts: The Fed cut the federal funds rate to near zero (0%-0.25%) in March 2020.
- Quantitative Easing (QE): Resumed massive purchases of U.S. government and mortgage-backed securities to restore market functioning and lower long-term interest rates. This significantly increased the Fed's balance sheet.
- Emergency Lending Facilities: Re-launched and created various facilities (e.g., Money Market Mutual Fund Liquidity Facility, Commercial Paper Funding Facility) to backstop critical financial markets and ensure credit flow to households, businesses, and state/local governments.
- Regulatory Relaxation: Temporarily relaxed some bank regulatory requirements to encourage lending.
Speaker Notes: These monetary interventions were critical in preventing a full-blown financial crisis. The Fed's actions provided essential liquidity, stabilized asset prices, and kept borrowing costs low, complementing the fiscal response to cushion the economic blow. The sheer scale and speed of these measures were remarkable and largely successful in avoiding an even deeper contraction.
Slide 4: Fiscal Policy Responses
Content: The U.S. government implemented massive fiscal packages to support households and businesses.
- CARES Act (and subsequent legislation): Authorized over $3 trillion in spending, equivalent to about 14.5% of U.S. GDP in 2019.
- Direct Payments: Provided stimulus checks to households (e.g., $1,200, $600, $1,400).
- Enhanced Unemployment Benefits: Significantly expanded and supplemented unemployment insurance benefits, including for gig workers and self-employed individuals not typically covered.
- Paycheck Protection Program (PPP): Offered forgivable loans to small businesses that maintained their payrolls.
- Aid to State and Local Governments: Provided funding to help maintain essential public services.
Speaker Notes: The fiscal response was substantial and much larger than that during the 2008 financial crisis. Its primary aim was to provide social insurance and keep households "whole" during the mandated shutdowns, rather than just broad stimulus. While some spending, like certain direct payments, might have gone to those not directly harmed, the overall goal was to bridge the income gap and prevent widespread financial distress. This massive injection of funds helped personal income to
increase in Q2 2020, an anomaly during a recession.
Slide 5: Structural Changes to the U.S. Economy
Content: The crisis has indeed initiated or accelerated several structural shifts in the U.S. economy.
- Digital Transformation & Remote Work: The pandemic massively accelerated the adoption of digital technologies and remote work across many sectors. This shift may permanently alter office space demand and commuting patterns.
Sample Answer
Alright, Mr. Forbes, let's address the profound economic impact of the COVID-19 pandemic and how we can better prepare for future crises. This presentation will cover the economic fallout, policy responses, global differences, and critical advice for navigating future shocks.
Slide 1: Title Slide
Title: Navigating Economic Storms: Lessons from the COVID-19 Pandemic
Subtitle: A Briefing for Mr. Steve Forbes
Presenter: Your Name, Economic Advisor
Date: July 23, 2025
Slide 2: The Unprecedented Economic Impact of COVID-19
Content: The COVID-19 pandemic triggered a swift and severe economic contraction globally, unlike anything seen in modern history. The U.S. economy experienced a significant shock due to widespread business closures, event cancellations, and work-from-home policies.
- GDP Contraction: Real GDP in the U.S. fell by 8.9% in Q2 2020, the largest single-quarter contraction in over 70 years.
- Job Losses & Unemployment: Millions of workers were dislocated, leading to record-shattering unemployment insurance claims. Unemployment reached 14.7% in April 2020.
- Supply Chain Disruptions: Global supply chains were severely disrupted, causing shortages and price increases for various goods.