Pattern of consumer spending and saving during the Covid-19 Outbreak
Write a 7–10 page research paper on an economic topic that can be looked at from the perspective of behavioral economics. Consider the topic of employee compensation and productivity, for example. The behavioral economics literature studies the employment relationship via a variety of lenses, such as Akerlof’s concept of the employment contract as a gift exchange, as contrast to the traditional model of economics that contends that the wages paid reflect the MP of the worker.
Your essay ought to contain:
1. An summary of the article and an introduction with your thesis statement
2. A survey of the relevant BE concepts and literature on the topic being studied
3. The introduction of fresh data or a fresh interpretation
For your project, you should consult at least 5 sources. All references must come from academic journals. A thorough bibliography should be supplied at the end of your paper, and sources should be cited either in-text or in footnotes. If you use a thought, piece of proof, or words from another author, please cite that author appropriately. When citing your references, you are free to use any style you like (MLA, APA, etc.). Please refer to the writing center’s resources at http://condor.depaul.edu/writing for more details or help with your writing.
Overview
Before COVID-19 transformed our world in 2019, American customers spent close to US$10 trillion1 on a wide range of services. Then, in 2020, people fled indoors in response to a powerful and invisible biological threat that had spread over the nation by contact and aerosols. Daily activities like going to the gym, getting a drink at the neighborhood bar, and calling a cab suddenly become high-stakes games of Russian roulette.
Consumer spending plummeted, and purchasing patterns abruptly shifted, as homes were converted into workplaces and overall economic activity slowed. Spending on lodging, transportation, and restaurants became unpopular overnight. Instead, consumers increased their purchases of home gyms, furniture, and utilities while stockpiling food and other necessities.
The hopelessness of 2020 is giving way to optimism this year. Since the peak on January 8, there have been 95% fewer new viral cases while vaccination rates have risen. 2 Vaccines are now accessible to youngsters as young as 12 years old. 3 The nation will probably get a little bit closer to what it was before the outbreak by the end of this year.
It will probably boost consumer spending and the overall economy. As people travel more, go to athletic events, go shopping, and return to restaurants and bars in droves, the services sector is poised for a significant resurgence. However, it is anticipated that spending on durable goods will be moderate. After all, the amount of gym equipment is limited.
A noticeable change in the volume and nature of consumer expenditure was brought on by COVID-19 fear, social isolation policies, and outright closures implemented locally at various points in 2020. Real personal consumption expenditure (PCE)5 decreased in 2020 as people’s purchasing options shrank and the financial toll of the pandemic hit hard. Even persons who were employed cut back on their expenditures last year due to the uncertainties surrounding the economy and their health.
