The coronavirus pandemic has severely hit the global economy including the U.S.
More than 42 million people have lost their jobs since the pandemic hit the U.S. in March 2020. The U.S. gross domestic product (GDP) has also decreased by 5% in the first quarter, according to the second estimate released by the Bureau of Economic Analysis.
As the death toll due to the coronavirus is gradually decreasing, a few states have started gradually reopening. New York State is also one of those states. Last week, Governor Andrew M. Cuomo announced that New York City will enter Phase 1 of reopening on June 8.
"Remember that reopening does not mean that we're going back to the way things were," Governor Cuomo said. "Life is not about going back. Nobody goes back. We go forward. And it's going to be different. This is about reopening to a new normal — a safer normal."
As all 50 states will have to try their best to come up with a quick recovery plan, there are some states which are in a dire need of financial help. Finance site Wallet Hub came out with the list of states that need the most financial help as their economy have been severely damaged by the ongoing crisis.
Interestingly, New York State doesn't come under the top three states in the list, whereas Louisiana is at the top spot.
“Louisiana needs the most financial help during the coronavirus pandemic in part because the state’s rainy-day fund can’t sustain government operations for more than a few weeks, which leaves it unprepared to weather a budget crisis,” said Jill Gonzalez, WalletHub analyst. “Louisiana has seen the fifth-lowest rebound in tax revenues since the Great Recession, and it is one of only six states where tax revenue has never exceeded pre-recession levels. Since Louisiana doesn’t have an adequate rainy-day fund or extra tax revenue to fall back on, it needs more support from the federal government.”
Watch the video above to find out which other states make it to the list.
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