Swine Flu and the Economy

The economy has taken a hit from the Swine flu. The economic crisis is getting worse because of the development of this virus that has caused fear and uncertainty among United Stated consumers. The financial stability of the country has been weakened because consumers are afraid to spend their money fearing the may need it to fight a pandemic. People are holding off on new purchases, and essentially playing the waiting game, which is wreaking havoc on the economy.

According to Charles Herman at ABC News, "The Congressional Budget Office estimated that a severe flu pandemic could infect 90 million people, result in the death of more than 2 million and would cause a 4.25 percent drop in the nation's gross domestic product. A milder pandemic, similar to those in 1957 and 1968, could lead to 75 million people becoming sick, 100,000 deaths and a drop of 1 percent in the nation's GDP.

The CBO economic estimate is conservative compared with those of other economists who forecast the nation's GDP could decline by as much as 6 percent. The International Monetary Fund warned that the fallout from a pandemic could expose some "financially vulnerable enterprises to the risk of bankruptcy."