The National Stock Markets suffered a massive decline in all stocks of certain natural resources which has affected Bakersfield.

According to the New York Times, stocks began to decline in the oil industry, which made many investors concerned because it went into the global financial system. The decline has become a problem due to the expectations of oil prices declining as well.

“I think that many investors foresee a recession coming caused by people staying in their houses or apartments instead of going out and spending money,” BC economics professor, Michael Harvath, said. “Obviously the travel and tourism industries will have the biggest decline in customers, but fear makes people prefer to save rather than buy other big-ticket items like cars also.”

Harvath also explained how the decline could affect the city of Bakersfield,  “in the same way it affects almost all the other cities and towns.” 

However, the Washington Post states that the coronavirus is the cause of the stock market decline because it affected the prices for fuel.

It caused many of the oil prices to drop, which led to many financial issues with the outbreak of the coronavirus, according to the Washington Post.

The coronavirus has caused a lot of industries, such as tourism, traveling and amusement parks, to close down. This has caused a financial issue because people can’t vacation due to the current outbreak. Most industries have closed down as safety precautions.

“When these industries workers are laid off, then they will stop buying things and people who have jobs making what they used to buy will lose their jobs and stop buying, and so on, until we are all in a bad recession,” Harvath said.

Harvath explained that certain businesses may experience some layoffs of employees, which could affect Bakersfield as well.

“People who work in restaurants may not be at the same risk, but certainly some will lose their jobs,” Harvath said. “Basically, the businesses that people do not have to go to, but instead gather for fun are the community that will contract the most.”

According to the Washington Post, the best way for industries in the market is to continue to stay invested and not drop out of the market.

“The belief this thing will end without being too bad would do it,” Harvath said. “Say that it mostly goes away in the summer, like some types of the flu do, and then there is a vaccine by the winter.”