The Effects of a Fully Functional Vaccine on the Economy

As we have seen in the past few days about the vaccine is that there is a 90% chance that the vaccine will be fully functional against covid-19. This has caused the stocks of that specific pharmaceutical company to substantially rise upwards. This means people will start buying these stocks fast, helping that company to grow in comparison to others that have also been trying to conjure up a vaccine. This will help this very company to expand their operations and make vaccines available to even more people around the world. It is true that whichever company is able to make a vaccine, will in fact become the highest gross earning and valued company during the pandemic and maybe even beyond it. A vaccine will not only help the people who made it, but also every single person who will be given it in order to avoid getting covid-19. This will help businesses to start running and companies to resume work. This will also cause workers to stop working at home and be more productive at offices with the capital present. This will also cause students to resume their studies hence producing more labor for companies to hire and hence this will cause an increased output rate that was decreased due to the pandemic resulting in the continuation of the economy. Labor has been the most affected in these times since not only many people became jobless, but many others died causing a substantial decrease in productivity hence markets were forced to close down. The vaccine will also help restart trading for the US with other countries as the US would know that it would be able to increase its GDP during this time because they would be immune to covid-19. By restarting trading, the vaccine would be exported and for the time being, imports would still remain as it is to make sure all people first get the vaccine before making death tolls rise once again. Therefore, this will cause net exports to rise since net exports = Exports - Imports, causing an increase in overall GDP.