Scientists are telling politicians to keep at limiting social contacts for Americans…
THAT means no large crowds …
Less going out means less people needed to work…
THAT means people get told not to come to work…
THAT means the economy IS going south separate from the stock market….
Government bailout money isn’t gonna help much….
However events unfold, one thing is becoming clear: As the effects of the coronavirus pandemic hit the U.S. job market, the damage looks likely to be much deeper and longer lasting than seemed possible even a week ago.
Marriott International, the hotel operator, said Tuesday that it would begin furloughing tens of thousands of employees worldwide. Restaurants, coffee shops, gyms and other small businesses have begun laying off workers outright. On Monday, a flood of inquiries from newly jobless New Yorkers crashed the website for the state’s unemployment insurance system.
With striking speed, Democrats and Republicans in Washington have embraced proposals for cash payments to Americans to help offset the economic damage. On Tuesday, President Trump endorsed the move, after previously pushing for a payroll-tax cut instead.
Relatively few companies outside the hospitality industry have announced significant job cuts, with many saying they will continue to pay employees even while they are closed, though often for fewer hours of work than normal.
But that cushion seems unsustainable. Most small businesses do not have the financial buffer to pay workers for long if revenue dries up. And while larger public companies may have access to cash, they also have shareholders who want executives to watch the bottom line.
“It’s simple math,” said Deborah Weinswig, founder of Coresight Research, an advisory and research firm that specializes in retail and technology. “You can’t have all expenses and no revenue.”….
I think Mnuchin said something about a 20% jobless number?
If THAT happens?
The virus itself will be an afterthought….