Name ________________________ Date _______________

Article of the Week (AOW) #25

❏ Read the article closely, annotating the text as you go.

❏ Writing Assignment: ● Complete “Reporter Research” sheet● Use your “Reporter Research” to write a newspaper article about the

economic impact COVID-19 has had on your local economy.

Submit your completed work on SCHOOLOGY (link it to the AOW #25 assignment).

Due by Tuesday, May 12.

Answering questions about COVID-19 and the economy

By Rebecca Cohen for Time for Kids Published: May 2020

Economy (noun)

The system of how money is made and used. A region’s economy is connected with things like how many goods and services are produced and how much money people can spend on those things.

The economy of the U.S. was terribly weak in the 1930s; families had little money and many people lost their jobs.

economics: the study of how goods & services are produced and distributedeconomist: a person who is an expert in economicseconomical: using only a small amount; frugaleconomize: to spend less money

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How is the COVID-19 pandemic changing life for you and your family? You’ve

likely been asked to make changes to prevent the spread of the disease.

Your school has probably been closed. You may even have been asked to

stay home for weeks at a time.

But the pandemic isn’t just a health problem. It’s also a problem for the

economy, and for families, in a number of ways. We know you have

questions. Here, we’ll walk you through the answers.

What’s the connection between the COVID-19 pandemic and money?

People across the United States and around the world have been told to stay

home or practice social distancing to slow the spread of the new coronavirus.

Some things can be done remotely—people are working from home and

shopping online, for example. But other things can’t. Americans have had to

stop eating in restaurants. Gyms and stores are closed. Movie theaters and

other places where groups of people gather have been shut down too. And

entire industries, such as airlines, have seen their business vanish overnight

as people stopped traveling. All these businesses have less money coming

in. Some have no money coming in. As a result, many companies have had to

lay off or furlough employees. That means less money for individuals and

families.

Why are businesses in my town closing?

In many places, businesses that aren’t essential have been ordered to close

to prevent the spread of COVID-19. These are businesses that don’t need to

be open in order for people’s basic needs to be met. Hair salons, toy stores,

and gyms are examples of nonessential businesses. While toys are fun and

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haircuts are important, these aren’t things you must have. Grocery stores,

banks, hospitals, and gas stations are considered essential, so more of these

are open. In most places, restaurants have been allowed to stay open, but

only for takeout and delivery. Those that don’t make enough money this way

may close on their own.

CLOSED FOR NOW Many businesses, museums, and public places have been closed because of the COVID-19 pandemic, including the National Gallery of Art, in Washington, D.C.

When will businesses reopen?

Unfortunately, no one knows

for sure. But everyone hopes

that sometime very soon, life

and the economy will start

getting back to normal. At that

point, many businesses will be

able to start bringing back

some of their furloughed

workers.

Until then, how are people who lose their jobs making money?

Together, the state and federal governments provide something called

unemployment insurance. Usually, if you lose your job for a reason that isn’t

your fault, you are eligible to receive money from your state. It covers a

portion of your salary for about 26 weeks. Because of the pandemic, those

benefits have been extended for an additional 13 weeks. The federal

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government is making additional payments of $600 a week until at least July

to people who lose their jobs.

What else is the government doing?

The government passed a $2.2 trillion law. It’s called the CARES Act. CARES

stands for Coronavirus Aid, Relief, and Economic Security. The law was

created to get money to people in the U.S. in a time of need. It allows for a

number of things to happen, including payments of up to $1,200 per adult

(and another $500 to parents for each child under 17). It also includes loans

for small businesses. Payments on home loans, called mortgages, can be

paused for a few months without penalties. So can student loans. Plus, the

deadline for filing taxes has been pushed back. The government also lowered

interest rates, so it’s less expensive to borrow money. Lower interest rates

also encourage consumers to spend. All of these actions are designed to

keep the economy going.

SHOPPING SAFE Grocery stores are essential, so most have stayed open. People shop wearing masks and try to stay a safe distance from one another.

What is a recession, and

why is the pandemic causing one?

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A recession is a decrease in economic activity for an extended period of time.

Recessions happen when consumers stop spending. Sometimes, consumers

stop buying individual items because prices go up. When gas prices are high,

for example, fewer people take road trips in the summer. But these changes

don’t usually cause recessions. Recessions can happen when lots of people

stop spending money on lots of things. The coronavirus has caused millions

of people to lose their jobs and many more to worry that they may lose theirs

in the future. As a result, and because people are staying home, spending

dropped very quickly.

What’s going on with the stock market?

Lately, if you turned on the evening news or a channel focused on business

news, you might have heard the word volatility. It means a tendency to

change rapidly and often. That’s what the stock market has been doing ever

since the country started dealing with the pandemic: going up and down like

a roller coaster. Stock prices (which are what you pay for shares of

companies like Disney, Apple, and McDonald’s) represent the current value of

those companies. They go up and down based on how investors expect

those companies will do in the future. Right now, there is a lot of uncertainty

about that.

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STOCK MARKET TROUBLE On March 9, stock prices fell so suddenly that the buying and selling of stocks was halted for 15 minutes. Here, a worker observes the plunge from the floor of the New York Stock Exchange.

Investors are trying to understand how companies will be doing in the coming

months or even years. Many investors have sold stocks as a result. When

people sell stocks, stock prices fall. When the prices are down, other people

think some of those stocks are bargains and buy them. This sends prices up

again. For now, we expect that the stock market will continue to be volatile.

But down the road, experts believe prices will go back up.

Have we ever had a pandemic like this before?

Yes. In fact, this may be the second pandemic, and the fourth global health

emergency, you’ve seen in your lifetime. Swine flu was a pandemic in 2009.

Ebola was considered a global health emergency from 2014 to 2016. So was

Zika in 2015 to 2016. What makes the current virus different? It’s much more

infectious than the others were. It has also infected more people in a much

shorter period. That’s the reason the economy is suffering so much this time.

What do experts think will happen next?

Experts believe that by practicing social distancing and staying home, people

are slowing the spread of the virus. These experts are working to figure out

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when and how it will be safe for us to return to normal life. Scientists are

working on vaccines that will help us keep COVID-19 under control in the

future. When life returns to normal, experts hope people will be able to go

back to work, businesses will reopen, and the stock market will stabilize. It’s

safe to say that everyone is wishing for a speedy recovery.

Your name_______________________ Date _________________

REPORTER RESEARCH

Directions: Use the questions below to gather information about how COVID-19 has affected businesses in your area. Then use the information to write a

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newspaper article.

1. Name one business in Seattle that has been affected by COVID-19.2. What type of business or industry is it?

2. In what way has it been affected? (Is it out of business? Temporarily closed? Operating with restrictions?)

3. What, if anything, is the business doing to support itself at this time? (Is it taking orders online? Offering gift cards? Asking for donations?)

4. What is one quote you found in your research about how a business owner, employee, or customer is coping at this time?

5. What would you recommend readers do to support businesses in their town?

6. What is a headline that will grab a reader’s attention? Is there a compelling photo you can include?

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WRITING YOUR ARTICLEUse your answers to the Reporter Research questions to write a newspaper article informing people about how COVID-19 has affected this Seattle business.

Your article needs to include:

❏ Headline❏ Byline (by ______________)❏ Photo or illustration (you may use the business’ logo)❏ 5-8 sentences that describe how COVID-19 has affected this business

You may type or hand-write your article.

Here’s an example of how you might format a typed version:

⇠ newspaper Headline ⇢

name

⇠ Photo or illustration

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