CSUN Impacts of Covid 19 on Economic Inequality Discussion
Description
An Idea Log is an opportunity for you to take one of your research ideas on anything in economics and develop it in 2p. Things to think about while writing your idea log: What is the hypothesis or research question? What do you think the result will be? Why is this important?
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Impacts of COVID-19 on Economic Inequality
Humaid Alsuwaidi
CGU
Econ 316
Joshua Tasoff
10/1/2021
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Impacts of COVID-19 on Economic Inequality
The adverse effects associated with the COVID-19 pandemic are evident in every
scope of life. The pandemic has directly contributed to millions of deaths, increased poverty,
and a global recession. While the pandemic has contributed to increased global poverty,
wealthy individuals have registered more income since its outbreak (Ferreira, 2021).
Research Question
How do high-income and low-income earners compare in the economic consequences of the
COVID-19 pandemic?
Hypothesis
The first assumption is that the COVID-19 pandemic has unequal economic impacts
on populations. A positive hypothesis will occur if the virus has a lesser economic impact on
high-income earners than those in blue-collar jobs.
The second hypothesis is that the pandemics outbreak resulted in decreased
household income and increased defensive savings. The study will register a positive
hypothesis if households report decreased income during the pandemic due to government
isolation and lock-down policies.
The third hypothesis is that government initiatives for mitigating the pandemic’s
effects will contribute to further inequality. After COVID-19’s outbreak, governments
established stimulus packages to protect the economy from the pandemic’s negative effects. A
positive hypothesis is if these packages will lead to increased tax and public debt, which
could lead to further inequality.
The fourth assumption is that the pandemic will have greater negative economic
impacts on poor neighborhoods than wealthy neighborhoods. A positive hypothesis will
occur if low-income neighborhoods will have a greater susceptibility to the negative
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economic impacts of the pandemic due to fewer contacts to financial institutions that offer
emergency grants.
Possible Results
The study results will illustrate dissimilar financial impacts of the pandemic on people
based on their economic status. Specifically, it will reveal increased unemployment among
those working in some sectors than others, such as tourism and restaurant.
The study results will disclose increased income and wealth disparity in society.
High-income earners will report sustained or increased financial status because they retained
their jobs during the pandemic. Low-income earners will depict a decline in their financial
status due to reduced income, loss of jobs, and increased healthcare expenses.
The research results will demonstrate increased defensive savings among high-income
earners and low-income earners. Respondents from both high-income and low-income
neighborhoods will depict similar spending and saving habits. They will be less willing to
spend on transportation and the hospitality industry.
Another result will be the negative impact of government policies on high-income and
low-income earners. High tax and public debt will increase the economic burden on society.
Low-income earners will experience the greatest burden of public debt and increased debt
due to their high unemployment rates and reduced income.
Importance
Most efforts associated with the COVID-19 pandemic focus on strategies aimed at
reducing fatalities and preventing infections. Some investigators have dedicated their efforts
to determine the pandemic’s economic consequences on the business landscape. Nonetheless,
the pandemic has dreadful economic consequences not only on the health and business
sectors but also on society. Research regarding the pandemic’s impact on inequality is
necessary to provide policymakers with insight into the future socio-political landscape.
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Increased inequality has extended consequences on society, including further oppression of
minorities, exploitation of some groups, and decreased economic growth. Additionally, the
economic disparity could lead to increased crime and conflict in society.
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Reference
Ferreira, F. H. G. (2021). Inequality in the time of COVID-19. International Monetary Fund.
Inequality and COVID-19 IMF F&D
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Explanation & Answer:
2 pages
Tags:
economic inequality
COVID 19
idea log
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