How well the world economy recovers from the pandemic will depend largely on the number of people who receive the vaccine. For that reason, the U.S. isn’t just dependent on its own citizens getting vaccinated; all other countries need high numbers as well.
According to Kristalina Georgieva, International Monetary Fund chief, vaccine policy will be the most important economic policy this year and probably next year — perhaps even more so than monetary and fiscal policies. Economists predict that investing in a faster rollout of coronavirus vaccines could generate returns as high as $9 trillion for the global economy.1
Convincing Americans to get vaccinated is one issue, but convincing the rest of the world is another. If well-vaccinated countries experience stronger recoveries than poorly vaccinated countries, the fallout can have long-term economic effects.2 Presently, much of U.S. manufacturing depends on outsourced labor in other countries where production costs are much lower. If those countries continue shutdowns, the subsequent delays will likely affect supply chains, reducing inventory and raising prices on consumer goods in the U.S.
If you have weathered the financial storm, now is not the time to rest on your laurels. Remember the impact this pandemic has had on so many households and the economy as a whole, and use this time to put insurance safeguards in place — especially for the potential of lost income. If we can help brainstorm ideas for ensuring financial security for your household, please give us a call.
Variants of the coronavirus tend to mutate the longer the infection continues to spread. The most recent concern has to do with the Delta variant, which was first detected in India last December. It is considered far more contagious and doubles the risk of a person being hospitalized. In fact, scientists (and economists) worry that given the rate at which Delta spreads so easily among the unvaccinated, the U.S. could experience a significant relapse this fall.3
Another concern among physicians is that the therapies they’ve been using in hospitals, such as monoclonal antibodies and convalescent serum, do not appear to be as effective against Delta.4
Furthermore, studies are finding that vaccinated people show more resilience to the variant than immunity derived from having already contracted and recovered from COVID-19. While anyone can still get the virus, its severity may be determined by how immunity was achieved.5
Because vaccine controversies and debates tend to dominate headlines, one of the true advantages of this modern science has largely gone unnoticed. That is, the success of the technology behind the Moderna and Pfizer vaccines has paved the way for other new vaccines. The same mRNA technology is already being tested in clinical trials for conditions ranging from HIV to cancer.6
1 Silvia Amaro. CNBC. June 16, 2021. “Vaccines will be the ‘most important’ economic policy this year, IMF chief says.” https://www.cnbc.com/2021/06/16/covid-imf-chief-says-vaccine-policy-is-the-most-important-economic-driver.html. Accessed June 25, 2021.
2 David Brancaccio, Meredith Garretson and Daniel Shin. Marketplace. June 24, 2021. “Uneven vaccination rates may worsen global inequality.” https://www.marketplace.org/2021/06/24/uneven-vaccination-rates-may-worsen-global-inequality/. Accessed June 25, 2021.
3 Dhruv Khullar. The New Yorker. June 23, 2021. “The Delta variant is a grave danger to the unvaccinated.” https://www.newyorker.com/science/medical-dispatch/the-delta-variant-is-a-grave-danger-to-the-unvaccinated. Accessed June 25, 2021.
4 Sheila Mulrooney Eldred and Pranav Baskar. NPR. June 25, 2021. “Coronavirus FAQ: I’ve Been Vaccinated. Do I Need To Worry About Variants?” https://www.npr.org/sections/goatsandsoda/2021/06/25/1007843591/coronavirus-faq-ive-been-vaccinated-do-i-need-to-worry-about-variants. Accessed June 25, 2021.
5 Steven Findlay. Kaiser Health News. April 16, 2021. “The Shock and Reality of Catching Covid After Being Vaccinated.” https://khn.org/news/article/the-shock-and-reality-of-catching-covid-after-being-vaccinated/. Accessed June 25, 2021.
6 Noel King and Allison Aubrey. WWNO. June 21, 2021. “Success Of COVID-19 Vaccines Ushers In Renaissance In Vaccine Technology.” https://www.wwno.org/2021-06-21/success-of-covid-19-vaccines-ushers-in-renaissance-in-vaccine-technology. Accessed June 25, 2021.
This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.
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