U.S. Consumer Sentiment Rises Despite Ebola Fears
http://www.reuters.com/article/2014/10/17/us-usa-economy-idUSKCN0I619U20141017
In the article, U.S. Consumer Sentiment Rises Despite Ebola Fears, Jason Lange discusses the impact that the ebola virus in the United States is having on the economy. Although many Americans are deeply concerned about the spread of the virus, this concern has not had any significant impact on the economy. In fact, consumer sentiment, which measures the economic health of the economy as determined by consumer opinion, is at the highest it has been since July 2007.
While the three cases of ebola in the United States have not had a significant effect on the economy thus far, if the outbreak spreads significantly (which by expert accounts is highly unlikely), there would be the potential for an economic impact. Some of the possible effects of an ebola outbreak in the United States are outlined in the article attached below:
http://dallasmorningviewsblog.dallasnews.com/2014/10/ebola-costs-just-the-tip-of-the-economic-political-iceberg.html/
What is interesting is that in addition to the actual costs associated with treating the virus, there would be significant costs due to panic. Already we have seen this, with news programs showing people purchasing masks to prevent their chances of being infected, as well as people showing up at hospitals requesting to be tested for the virus when they have no chance of having the virus and simply have a cold, or the flu. Additionally, the Dallas hospital where the first man diagnosed with ebola in the US passed away, is said to be like a ghost town at this point, which is certainly having an economic impact on the group that owns that hospital. It is fortunate that the ebola virus has yet to make any significant impact on the US economy, and that the likelihood of it spreading to the point where it could do so, as has happened in several African countries, is slim.
As bad as Ebola is, it;s great that it is not negatively effecting the economy. However, like the article said, I believe if it becomes more of a threat to the country or if people even predict it will be a threat many things in the economy will be effected such as hospitals, medications, and just general interaction with people due to chances of the virus spreading. One case of Ebola has changed things for the hospital that the Ebola patient died in. A few more cases of dead Ebola patients will change more than just a hospital or two. Good article.
ReplyDeleteI agree that the reason Ebola hasn't had a significant economic impact in the United States is because there have only been a few cases in the country thus far. The fact that the virus isn't known to spread very easily might be another contributing factor. If more cases pop up in the country, I'm sure the impact on the economy will be much greater. Hopefully the virus will be contained so this does not happen.
ReplyDeleteDespite the seriousness of the illness, people forget that Ebola has barely touched the US. There is no telling if this might change in the future, but as of this moment, the economy will likely not be hugely impacted by it.
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