Financial Ruin May Be More Prevalent In Your State

Photo by Micheile Henderson on Unsplash

 

You have probably noticed your town changing. Stores are closing down, hours of operation have shortened, and friends and family are losing their jobs.

COVID-19 has had a substantial financial impact on America’s economy, playing a greater role on one’s well-being than previously expected.

But some states are feeling the blow harder than others which could lead to a painfully slow recovery.

The number one state to see a drastic fall in their economy?

According to research gathered by Moody’s Analytics, Nevada is seeing the biggest financial impact from the coronavirus pandemic.

Which makes perfect sense.

The Silver State is notorious for bringing in herds of tourists every year to gather around crowded poker tables, eat at never-ending buffets, cram into large auditoriums for one-of-a-kind shows, and stand elbow to elbow to admire the Hoover Dam.

With social-distancing and shelter in place regulations, it is nearly impossible to enjoy the bright lights of Las Vegas or any other popular Nevada attraction; which accounts for a large portion of the state’s revenue.

Moody’s Analytics Chief Economist Mark Zandi told Yahoo Finance:

If you’re getting hit hard now and businesses are failing, and there’s bankruptcy and people are taking on debt or starting to default on debt, it’s going to be harder for those economies to recover. So the No. 1 criteria for determining who recovers more gracefully will be who gets hit least hard during this period.”

Figuring out each state’s statistics was done considering six metrics, but the problem with the current predictions is that as the virus spreads the numbers shift, making a state more or less likely to have financial crises.

Hawaii is another state that relies heavily on tourism and will see a hard hit to their economy.

Also near the top of Moody’s list is Washington state at number 3 and New York at number 5.

Washington state was the site of the first discovered outbreak of COVID-19 in the United States, where the virus spread rapidly. The state is still dealing with slowing down their infection numbers which has put a strain on local businesses.

New York has the most confirmed cases of coronavirus than any other state, but they are wealthy, being home to many major high-end companies and industries. Their fallout is severe, but they will likely recover in time.

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Looking at states with minimal economic damage we have West Virginia and Missouri, due to having the least amount of exposure to COVID-19.

Data on loans taken out since the pandemic have not been released yet, and according to Zandi this information may change the outcome for economic recovery in your state.

Families can continue to keep themselves safe by maintaining social distancing and limiting contact with others to obtain essentials, as Mommy Underground has previously reported.

The whole country is feeling the effects of the coronavirus through either suffering from COVID-19, losing a job, or struggling to maintain some sense of normalcy for the children at home.

Our government has been working tirelessly to uphold the safety and security of the American people and in time we will recover from economic and physical hardship as we always do.

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