Not Every Industry Can Get Special Help From The Government. So Who Gets Bailed Out And Who Gets By On Generic Economic Aid?
President Donald Trump has already vowed to help both the cruise line industry and the airline industry. But what other industries are likely to get specialized attention as steps to flatten the curve of the outbreak have a devastating effect on everything from movie theaters to small businesses.
Who Gets Saved And Who Collapses?
As Americans brace for the rapid spread of the novel coronavirus across the U.S., once-booming industries are already suffering from deadly symptoms of an economic downturn. Consumers, after panic-buying, are expected to hunker down and limit their spending. Sporting events, concerts and other entertainment are now suspended. Businesses are canceling travel and conferences. Airlines and trains are slashing schedules. (Ward, 3/14)
Despite Forecasting Economic Slowdown, Mnuchin Says Coronavirus Won't Cause Recession
Despite forecasting an economic slowdown, the president's top economic adviser said on ABC's "This Week" that he did not think the novel coronavirus pandemic would cause a recession. Responding to ABC News Chief White House Correspondent Jonathan Karl on whether there will be a recession, Treasury Secretary Steven Mnuchin said, "I don't think so. The real issue is not the economic situation today. … This is a unique situation. We are going to have a slowdown. Later in the year economic activity will pick up as we confront this virus." (Arnholz, 3/15)
The Wall Street Journal:
Sports, Retailers, Airlines, Autos: The Damage Across Business
The rapidly spreading coronavirus has reached every corner of the U.S. economy, upending the jobs of Seattle taxi drivers, Texas oil workers and Wall Street traders—and nearly everyone in between. The virulent invader, which swept through Asia and Europe, is leading many U.S. businesses to hoard cash, pare spending and rethink how they operate without knowing how long the troubles will last. Some that lost business may never get that revenue back. Thinner profit margins and a focus on cost cutting mean some firms may lose key workers, vendors and the ability to invest for the future. (Gryta and Maloney, 3/15)
The Wall Street Journal:
Coronavirus Social-Distancing Forces Painful Choices On Small Businesses
Small-business confidence plunged in March to near its lowest levels in the past seven years, as business owners grappled with the effects of the novel coronavirus on their companies and the broader economy. Owners of businesses from restaurants and yoga studios to marketing and manufacturing firms are already making tough choices, as the fallout spreads from industries dependent on Chinese manufacturers to the broader U.S. economy. (Simon, 3/15)
The New York Times:
As Coronavirus Deepens Inequality, Inequality Worsens Its Spread
As the coronavirus spreads across the globe, it appears to be setting off a devastating feedback loop with another of the gravest forces of our time: economic inequality. In societies where the virus hits, it is deepening the consequences of inequality, pushing many of the burdens onto the losers of today’s polarized economies and labor markets. Research suggests that those in lower economic strata are likelier to catch the disease. They are also likelier to die from it. And, even for those who remain healthy, they are likelier to suffer loss of income or health care as a result of quarantines and other measures, potentially on a sweeping scale. (Fisher and Bubola, 3/15)
In other news on workers —
The Washington Post:
Federal Employees Will Report To The Office Monday As The Rest Of The Country Isolates Itself
Most of the nation’s 2.1 million federal employees will report to work Monday to tightly packed office cubicles and other workplaces where they serve the public, even as schools and colleges across the country have closed, businesses have sent their staffs home to work and governors have canceled public activities to limit the spread of the coronavirus. (Rein, Duncan and Jan, 3/15)
White House Asks Federal Workers To Halt Most Travel Amid Coronavirus Outbreak
As the coronavirus outbreak continues across the U.S., the White House has told federal agencies and executive departments to suspend all work travel unless it is absolutely necessary. The White House Office of Management and Budget issued new guidance on Saturday telling federal workers that "only mission-critical travel is recommended at this time." (Davis, 3/15)