The action to close down America for months IS causing business, Big, Small and Medium size pain and closure….
Those mom and pop businesses that may have been on the edge are suffering just as some large businesses are…
Republicans, ever watchful for business, not consumer’s, have sent hundreds of billions of dollars to prop up the business sector….
That money was loans., due back in short time..
The virus squeeze on the countries economy isn’t gonna be over for months , even years….
The deal to take the money for putting people back to work isn’t gonna work in a lot of situations, just as the money form the 2017 GOP tax ‘cut’ for employment hasn’t worked THAT way either….
Now we have Senate Leader McConnell and Trump worried about giving out TOO MUCH money…..They have recovered from being scared in the middle of the virus crisis a few month ago and hearing conservatives going back to small government thing they want government help to the economy stopped…
All this coming on a general election in less than 6 months ….
I just keep thinking?
Donald Trump REALLY doesn’t want 4 more years of his current job….
And McConnell maybe starting to think the same thing…
When Congress enacted the Paycheck Protection Program as part of a $2 trillion aid package in March, it still seemed plausible that the disruption to the economy would be temporary. And the P.P.P. was devised to ensure that employers kept as many people on their payrolls as possible. But that has often acted at cross-purposes with the goal of having businesses ultimately emerge as viable enterprises.
“The P.P.P. makes sense in that incentivizing employers to keep people on payroll and compensating them for doing that is valuable, especially given the overwhelming of the unemployment insurance system that was happening,” said Adam Ozimek, chief economist of Upwork, a website for freelancers. “Conceptually that makes sense, but the issue is trying to do that and at the same time address the issue of massive small business insolvency that we are increasingly facing.”
Mr. Ozimek is dealing with the tension firsthand. In addition to his job as an economist studying labor markets, he is co-owner of Decades, a bowling alley, restaurant and bar in Lancaster, Pa. Before the pandemic, it employed the equivalent of 35 full-time employees, but it now needs fewer workers while takeout food is its only business. It has taken a P.P.P. loan.
Leading economists have identified the mass closure of service-oriented businesses as a particular risk for the medium-term future of the economy. One survey of 5,800 small businesses conducted in late March found that only 47 percent expected to still be in business at the end of the year if the crisis lasted four months.
“The loss of thousands of small- and medium-sized businesses across the country would destroy the life’s work and family legacy of many business and community leaders and limit the strength of the recovery when it comes,” Jerome Powell, the Federal Reserve chair, said in a speech last week. “These businesses are a principal source of job creation — something we will sorely need as people seek to return to work.”
There’s not much the government can do if a health crisis renders some types of businesses, especially those where large groups of people gather, nonviable indefinitely. But there are several ideas circulating on Capitol Hill to try to address the potential of mass small business closures….