Recently, I was reminiscing with my partner about the last time our family enjoyed a trip to the movies. In our quaint Oregon town, there’s a charming one-screen cinema where we used to catch a film once or twice a month with our three kids. Unfortunately, we haven’t been able to go since March.
Dining out together as a family has also been off the table. We skipped our local community pool this summer and went months without haircuts. I even canceled my gym membership, and my partner hasn’t had a day of pampering in ages. We had saved for a big family vacation to Disney World this October, but we decided to cancel and hold onto our funds instead. If you’re reading this, you’ve likely been navigating the same COVID-19 lifestyle as us: staying in and avoiding social activities.
While our experiences may seem trivial, they pale in comparison to the struggles many Americans are facing. Millions have lost their jobs, and tragically, over a quarter of a million lives have been lost in our country alone. Not everyone has had it easy during this pandemic.
Conversely, there’s a significant portion of the American population that has been working from home, taking a pause to flatten the curve, and saving money that would typically go to bars and concerts. With fewer commutes, they’ve skipped snacks at gas stations and coffee runs. This has resulted in a substantial amount of money accumulating in bank accounts.
And it’s quite a hefty sum. Economists estimate this stash to be around $2 trillion—approximately 10% of the American economy. Ian Davis, chief economist at Macro Insights, even dubbed it the “Biden Boom.” He remarks that “President-elect Biden is stepping into office at a pivotal moment,” predicting a surge of economic activity once the pandemic subsides.
The pressing question is: how long will we have to wait? Unlocking this money hinges on the successful rollout of a vaccine. While we are closer than ever, the recent grim milestone of 250,000 COVID-19 deaths makes the wait feel painfully long.
Both Pfizer and Moderna have promising vaccine candidates, but they face numerous logistical hurdles related to FDA approvals, manufacturing, and distribution. Additionally, many Americans may be hesitant to receive the vaccine. Therefore, this won’t be an instantaneous switch to normalcy; it will take time before people feel comfortable spending money again.
What people choose to spend their saved funds on remains uncertain. As Joel Thompson, chief U.S. economist for a forecasting firm, noted, “After skipping my haircut for so long, I won’t be rushing to get three in one go.” It’s likely that discretionary spending won’t align precisely with pre-pandemic habits. Thompson predicts it might take two years for Americans to return to previous levels of spending on travel, entertainment, and services.
Personally, I’ve weathered two rounds of layoffs at my primary job, which makes me cautious about my spending habits. After nearly a year of living with this virus, there is a glimmer of hope on the horizon, and that optimism is a refreshing change after months of discouraging news.
For more insights about navigating this new normal, check out this article on home insemination kits and resources like March of Dimes for pregnancy. Also, if you want to boost your fertility, visit Make A Mom, an authority on the subject.
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Summary:
The anticipated economic recovery, dubbed the “Biden Boom,” hinges on the successful rollout of COVID-19 vaccines. As millions save money by staying home, economists predict that this could lead to a significant boost in spending once safety returns. However, it may take time for consumer habits to revert to pre-pandemic levels.