Coronavirus is leaving a trail of economic downfall

Published: Mar. 9, 2020 at 5:18 PM EDT
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As Coronavirus continues its spread across the country, its leaving a mark on the economy.

The Dow Jones dropped more than 2,000 points Monday, one of the largest falls in years.

Dr. James Libby, a Professor of Economics at Thomas College, highlights some of the other less mentioned consequences of the virus.

"What I'm concerned about is that eventually this could lead to a change in employment. I think if you look at the death rate is the big one, it's much much higher on a multiple than just the normal Flu. So some of the changes and behavior that businesses are taking like not going on a trip, or not having a major conference," said Dr. Libby.

Covid-19 are impacting some industries harder than others.

"The impacts are variable because on one hand, you're seeing everybody buy hand sanitizer so the market is up there. But on the other hand you're seeing we'll cruise ships and any kind of transportation," said Libby.

The oil industry is also being hit.

"When you take the unknowns that come with Covid 19 and then combine it with what is going on with oil prices, you get a real big jump downward. Consumers here really get the good side of the double edge sword, in that gas prices will be lower and are lower now and are expected to go lower in the short run. On the other side of it there's a lot of employment, not just in the U.S. but around the world that is tied to energy, and with the energy market being a little unstable, there's concerns about that employment," said Libby.

According to AAA, average gas prices around Maine are currently $2.37.