Many businesses shut their doors either for a lack of customers or on orders from state or local governments as emergency declarations began rolling across the country in mid-March,. Yet it could be weeks more before the business loans, bigger unemployment checks and direct payments to individuals from the stimulus plan flow into the economy.
Small businesses account for almost half of U.S. private employment. A complete collapse of even some of those enterprises not only would dash the dreams of entrepreneurs and threaten the livelihoods of many, it risks sapping the power of an eventual economic rebound as the financial distress ripples through to landlords, vendors and lenders.
Already, 50,000 retail stores have shut in just over a week across the country, putting more than 600,000 workers on furlough, according to data compiled by Bloomberg.
The National Federation of Independent Business, had a record 13,000 people register for a webinar it hosted Monday on the stimulus plan and financial resources".After the webinar ended, more than 900 emails flooded in, she said, with business owners asking: "Am I going to have anything left? Will I be evicted? Will I have to file for bankruptcy? Will I be able to reopen?"
"The emails almost make me want to cry," Milito added. "What I'm hearing from members is fear, uncertainty and almost heartbreak." ("Stimulus May Come Too Late for U.S. Businesses Already Stretched", Bloomberg)
10 Food banks are seeing a sudden, sharp rise in demand
This is from Newsday:
"Emergency food programs are bracing for a wave of new recipients in the coming weeks as more Long Islanders are expected to lose their jobs, get furloughed or have work hours and wages reduced. At the same time, volunteers - many of them at high risk of contracting the virus - are staying home to protect themselves and needy people from getting sick.
Compounding the problem is a crippled national supply chain that delays food deliveries by weeks.
"It's a perfect storm of tragedy on top of each other," said Jean Kelly, executive director of the Interfaith Nutrition Network, a Hempstead soup kitchen. "Everything that could go wrong is going wrong."
Soup kitchens and pantries in many communities closed temporarily in recent weeks to protect volunteers or because sponsoring agencies, such as houses of worship and nonprofits, also shut their doors.
"The reason they're closed is they don't really have an infrastructure of people to work there".The majority of the food pantries are operated by volunteers. The average age is in their 70s. They're fearful of contracting the coronavirus." ("Demand at LI food pantries rise as volunteers and food supplies fall", Newsday)
Final Note from an article titled: "Americans Are Worried About The Coronavirus. They're Even More Worried About The Economy"
"An overwhelming majority of Americans are really concerned about the economy. " A Morning Consult poll conducted between March 20 and March 22 found that 90 percent of Americans said they were "very" or "somewhat" concerned that the coronavirus would impact the economy"Americans are also worried about job security 49 percent said they were worried about losing their job, according to an Economist/YouGov survey conducted between March 22 and March 24." (FiveThirtyEight)
Not surprisingly, some polls suggest that "more Americans are worried about the effect of the coronavirus on the economy than about their own health." I would include myself in that group, which is why I hope that President Trump expands his economics team by adding more experienced, top-notch economists who can help him navigate this unprecedented and potentially-catastrophic crisis. This isn't the time for the B Team (Kudlow, Mnuchin) to making decisions that will impact the entire country.
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