Coronavirus is hurting industries and the stock market as concerns about the illness continue to grow. On Monday, a Calhoun Community College dean explained why the coronavirus is having such a negative economic impact not just in the United States, but worldwide.
Dr. James Payne is the Dean of Business and Computer Information Systems at Calhoun Community College. He compares the growing fears of the coronavirus to the swine flu epidemic in 2009, when fears and impacts also contributed to hitting the economy.
"In addition to disruption of travel, we are beginning to see disruption of shipment of goods from China, not only consumer goods, but also components that are used in the United States and other countries to assemble products," Payne said.
Payne says the coronavirus is not only a health hazard, it's an economic one as well.
According to the Wall Street Journal, last week the stock market suffered its biggest loss since 2008. The Dow Jones fell 12 percent as he fears of coronavirus continue to spread. Payne explains why the stock market is taking a big hit.
"Because it is very forward looking, and responds to threats or benefits in the future, we tend to see often very sharp movements when something that's unknown or unexpected like this occurs," Payne said.
Payne says the coronavirus is most likely not the only factor, there could have been other underlying factors, and the coronavirus simply sparked the movement. Locally, people say they could see an impact as well.
"Business wise you definitely see a little bit of a decline because people are straying away from being in the general public, going to eat at restaurants," Brittney Trenter, said.
Payne says his team is turning the epidemic into a teaching opportunity.
"We do talk about it in classes and it gives us an opportunity to talk about supply chain disruptions that any event like this could have," Payne said.
Payne says because the economy had been booming, it will be able to withstand the negative impact of the coronavirus. He says retail shopping is taking a hit but it's too early to tell how much.