The Coronavirus Is Different Than 2008 Effect On Businesses

It May Feel Like 2008, but the Coronavirus is Different

While we’re not yet aware of the severity of the coronavirus’s economic effects, the plunging stock market and recession talk are bringing back memories of the 2008 financial crisis. But according to USA Today, the economic impact of the pandemic won’t be as severe or long-lasting as the 2008 downturn.
Years of developing weak spots in the economy caused the financial crisis of 2008, but what we’re seeing now is due to an external cause; not the economy itself. The coronavirus pandemic is being compared to more of a natural disaster, and consumers and businesses are in a position to bounce back quickly.

Comparing the 2008 Recession and the Coronavirus Crisis

In 2008, lenders approved mortgages for a number of buyers who weren’t even qualified, which drove home prices up. Americans stopped making payments on mortgages and lost homes, and banks were pushed to the edge of bankruptcy.
But problems had been mounting within the housing market and lending systems for years. There are fewer people affected by the coronavirus than were affected by the ’07-’09 financial crisis. COVID-19 is most likely to affect the travel, retail, and restaurant industries.
Americans had been saving only 3.6% of their income at the end of 2007. Today, households are saving around 8% (USA Today). This means Americans are better situated to handle a brief downturn and continue spending.
While job losses are likely to total in the thousands due to the coronavirus crisis, nearly 9 million Americans lost their jobs during the Great Recession in 2008. Millions were out of work during the ’07-’09 downturn, while experts are saying the COVID-19 crisis is likely to last around 6 months (USA Today).

Digital Marketing is Vital to Your Business

While COVID-19 has affected businesses across the world, a number of analysts are assuring Americans that its toll will not be as detrimental to our country as the downturn of 2008.
And…there is something you can do! A consistent online presence will be crucial to sustaining and acquiring new business during this time.
At ADVAN website design company, our team understands the importance of digital marketing during good times and in bad. We work with clients who came out of the 2008 recession unharmed. In fact, many of them were able to find the good in the situation – leaning out teams and growing their businesses.
To learn more about how ADVAN website company’s team of top digital marketing experts can help you grow your business, contact ADVAN at 330.688.1324. Or submit your questions via our contact form and we’ll respond as soon as possible.