Why a COVID-19 Vaccine Won’t Be a Magic Bullet for the Economy Any Time Soon

A COVID-19 vaccine would not help the economy to recover right away, even with a successful vaccine, someone told the stock market.

According to Fast Company, there have five reasons why the vaccine won't be a magic bullet for the economy, here is why:

• Vaccine logistics is still questioned- On Monday. The Pfizer vaccine caused so much excitement as the early data indicates effectiveness needs to be stored at 94 degrees, as per N.Y. Times. Besides, a dozen other COVID-19 vaccines have similarly specific distribution requirements in later-stage testing. Logistics, transportation, production, and rollout could hamper delivery, and all the other issues remain unknown.
• There are no clear details on how effective the vaccine would be- Even if Pfizer's vaccine news were promising, several questions remain, including how effective the vaccine would be to prevent symptoms versus infection, how well it works in different population groups, and how long the immunity lasts. Scientific communities still have no data for review.
• A year or longer will take to vaccinate people to reach herd immunity- Christine Lagarde, European Central Bank head, questioned how many people would be vaccinated in 2021. High-risk groups will be prioritized and will leave millions of lower-risk Americans in semi-lockdown.
• The economy couldn't be simply reversed- Federal Reserve chair Jerome Powell said, "We're recovering to a different economy," including huge numbers of unemployed workers. Powell repeatedly said that more stimulus is needed, which Congress remains deadlocked.
• People might stop spending- The country is logging over 150,000 new daily COVID-19 cases. People may stop spending again as they fear potential infection with those kinds of numbers.

Read also: Stock Futures Soar 1,700+ Points After Pfizer Announces Trial Vaccine is 90% Effective

The economy will still need more support despite progress toward the COVID-19 vaccine

According to MSN, Jerome Powell, Federal Reserve Chairman, warned that the U.S. economy would need further support from the central bank and Congress even if a COVID-19 vaccine becomes available by the end of 2020. Even if vaccines are widely available, millions of people who became unemployed amid the pandemic will still struggle to find work as the economy tries to recover from more serious long-term damage.

During a virtual appearance on a panel by the European Central bank, he said the main takeaway from all of the struggles is even after the unemployment rate goes down. There will be a potential substantial group of workers who need support will find their way in the post-pandemic economy on a panel hosted by the European Central Bank.

Currently, the U.S.faces the third wave of COVID-19 in every state. He spurred record-breaking daily cases that stretched some hospitals beyond their single-day increase on record, as per a tracker by Johns Hopkins University.

Read also: Post COVID-19 Recovery: Top CEOs Give 3 Key Things to Prepare Your Business