While many people are being hurt financially, especially those unemployed or underemployed because of the current economy shutdown in many non-essential industry sectors, others who have continued to be employed and paid their regular wages are actually saving money. This includes those persons who are still comfortably working and bringing in the same income as they did in pre-pandemic times, but who have seen their expenses forcibly slashed. For example, some workers are working from home and thus saving on the cost of commuting to and from work.
With many businesses still closed, we are saving money by not eating in restaurants and going to bars, theatres and gyms. Although some food such as meats will cost more in the short term, we are saving by cooking more at home and making our provisions go further than usual. Households in some regions are getting a further break by having electricity rates temporarily calculated based on off-peak times. Travel and vacations have been put on hold, again reducing major expenditures.
The U.S. has already seen its savings rate rise, with the Bureau of Economic Analysis reporting that it surged from eight percent in February to 13.1 percent in March — the highest level since 1981. What are those fortunate enough to put aside monies doing or planning to do with their new found savings? Some possibilities are:
- bolstering their investment portfolios
- building up emergency funds
- building up down payment funds faster than they initially intended so that they can purchase a first home
- paying down credit debt, including student loan debt, which was at record levels prior to the pandemic
- paying down more quickly the principal on mortgage payments
- putting more money into retirement funds
- setting up education savings plans for children
- etc. , etc.
The next real question to emerge is whether and how all these savings will be used once the planned reopening of non-essential businesses occurs? Will people play catch-up in terms of foregone expenditures? How long will it take for people to be comfortable enough to restart spending on such things as eating out, entertainment, travel and accumulated vacation time? How will the housing market be affected in light of the current slow real-estate conditions? Will consumer spending, normally representing seventy percent of Gross Domestic Product, pick up quickly or slowly with the economy’s reopening? Will this take weeks or months? There is little doubt that those financially vulnerable during temporary work interruptions, despite receiving government transfers, will not be able to help revive the economy in the short-term. Indeed, much will depend on whether they will have future employment and whether their employers will still be in business. There are many questions and few answers. In these uncertain times, only time will tell.
FROLITICKS 
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