BACK TO NORMAL: Bad News Is Good News For The Economy

BACK TO NORMAL: Bad News Is Good News For The Economy - Staying Financially Healthy - Reverse Your Thinking
BACK TO NORMAL: Bad News Is Good News For The Economy – Staying Financially Healthy – Reverse Your Thinking

Bad news is good news for the economy. You will want to watch a few bad news indicators as you search for evidence of recovery from the pandemic’s economic devastation. When matters get back to normal, bad news usually becomes good news.

Unemployment Numbers

Typically, a rise in unemployment is negative news. Especially, as the number of COVID-19 cases is on the rise once more.

“Unemployment numbers,” on the other hand, are designed to indicate the number of individuals who are actively seeking work, not the total number who are out of work. It is possible that when more individuals get vaccinated, and COVID-19 is stabilized, joblessness will grow once again as more people return to the job market.

As the unemployment rate rises, indicates more individuals have more confidence about being safe at work.

Higher Gas Prices

We are looking for ways to cut costs while filling up our cars. Despite the fact, most of us are not driving as often as we use to. Gas prices in many regions of the United States are currently lower than they were a few years ago.

Cheap gas, on the contrary, might be an indicator of economic turmoil.

An improving economy means more people driving, which means gas prices are likely to rise. This will tighten your budget however, it does mark the beginning of an economic rebound.

Increase of Evictions and Foreclosures

Currently, the federal government has a moratorium placed on evictions and foreclosures related to FHA loans. Additionally, the CDC has ordered a temporary suspension of residential evictions in an effort to prevent the spread of COVID-19. 16 states have established guidelines to restrict foreclosures, while 22 states have released guidelines to limit evictions.

Evictions and foreclosures will increase as the economy rebounds.

Interest Rates Will Increase

Borrowing costs for both consumers and corporations have been kept at historically low levels by the Federal Reserve. However, it may take some time, higher interest rates be a sign that the economy is returning back to normal.

A Lot More Traffic

Since the beginning of the pandemic the University of California, Davis reports that traffic in California was reduced by 55%.

Nonetheless, while people return to their daily routines of work, school, and trips, the streets will start to fill back up. Be prepared to sit in traffic because the economy is roaring back to life!

More Traffic, More Accidents

State-by-state seems to differ, but it appears that fewer accidents have been caused by fewer drivers being on the road. Speeding may have contributed to an increase in deadly accidents, notwithstanding this fact.

In California alone, there has been a 40 to 50% decrease in accidents among drivers, pedestrians, and cyclists according to reports from UCDavis.

Consumer Spending And Borrowing Will Rise

While this is not always the case, customers tend to pay off debt when the economy is weak. Credit card debt has fallen this year by 4.5% nationally.

It is good news for the economy when customers are willing to take out loans for non-essential purchases despite the fact that it may not be the best personal finance option.

Public Transportation Becomes Busier

Public Transportation ridership is at an all-time low, and may environmentalists fear that this critical climate change mitigation strategy may never return.

Busier public transportation will signal an upturn in the economy.

Reservations are Hard to Get

Right now, it is easy to get a table at your favorite place to eat. However, as more people become more confident about going out again, it may become more difficult to get a table.


Unfortunately for us, good news for the economy might be bad news for us. This is what it will look like for the economy to get back to normal.

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