Recession

[Belsnickel]

Well, I was looking up some financial information for work, today, and came across this: https://www.bea.gov/news/glance



With two successive quarters of GDP contraction, it puts us into a recession. In addition, this 32.9% contraction of the economy is a record. Now, before anyone jumps to the blame game, this is most definitely a result of the pandemic. Trump is not to blame, governors are not to blame, neither party holds blame, this is just the reality of the situation we are in. The only thing we can do is hope for appropriate policy measures to help us weather this storm without putting people at risk unnecessarily.

[NATI BENGALS]

https://www.wlwt.com/article/new-report-shows-hundreds-of-businesses-in-greater-cincinnati-permanently-closed/33438728

Yea I wasn’t happy to see this the other day as a Cincinnatian.

This is a deeeep cut. And we haven’t even stopped the bleeding yet

[Belsnickel]

(07-30-2020, 08:29 PM)NATI BENGALS Wrote: https://www.wlwt.com/article/new-report-shows-hundreds-of-businesses-in-greater-cincinnati-permanently-closed/33438728

Yea I wasn’t happy to see this the other day as a Cincinnatian.

This is a deeeep cut. And we haven’t even stopped the bleeding yet

We're seeing that in this area, as well, and I'm sure the same is all over the country. The ripple effect for this is real, too. I volunteer with Scouting in the area and we seek donations every year from area businesses as do many other non-profits. They are not as likely to open their wallets because they have to look out for their finances.

The effects of this are huge.

[Goalpost]

Amazon, Apple, Google and Facebook reported yesterday something like 30 billion in profits last quarter. Extraordinary. The housing market is strong with low rates. PayPal has surged as has Zoom technology. Walmart, Target, Best Buy, Home Depot, Loews, etc are flourishing. Companies like Kellogg's are benefiting from stay at home eating. It's all the entertainment, restaurant, airline, mom and pop stores and bars, casinos, theme parks, etc that are suffering badly. Virus has been catastrophic to these. Banks are somewhat steady which is a good thing. Fed has regulated the banks balance sheets and their percentage of reserves allocated for potential foreclosures or missed loans. Oil seems to have corrected back to a reasonable level. Let's face it. Until the health industry finds us a vaccine, significant areas of the economy will just not recover.

[Benton]

(07-31-2020, 03:47 AM)Goalpost Wrote: Amazon, Apple, Google and Facebook reported yesterday something like 30 billion in profits last quarter.  Extraordinary.  The housing market is strong with low rates.  PayPal has surged as has Zoom technology.  Walmart, Target, Best Buy, Home Depot, Loews, etc are flourishing.  Companies like Kellogg's are benefiting from stay at home eating. It's all the entertainment, restaurant, airline, mom and pop stores and bars, casinos, theme parks, etc that are suffering badly.  Virus has been catastrophic to these.  Banks are somewhat steady which is a good thing.  Fed has regulated the banks balance sheets and there percentage of reserves allocated for potential foreclosures or missed loans.  Oil seems to have corrected back to a reasonable level. Let's face it.  Until the health industry finds us a vaccine, significant areas of the economy will just not recover.

Excellent points. This has actually been a good thing for some businesses (mostly big business). My worry is the small businesses. They're taking a beating.

[Belsnickel]

(07-31-2020, 07:35 AM)Benton Wrote: Excellent points. This has actually been a good thing for some businesses (mostly big business). My worry is the small businesses. They're taking a beating.

They definitely are. I've actually worked to reduce the amount I get from those large businesses. Though most of what I have been buying has been for fly fishing, so one particular shop has been getting most of my business.

[*michaelsean*]

(07-31-2020, 07:38 AM)Belsnickel Wrote: They definitely are. I've actually worked to reduce the amount I get from those large businesses. Though most of what I have been buying has been for fly fishing, so one particular shop has been getting most of my business.

Skip the fly fishing and support your local fishmonger.

[*Nately120*]

(07-31-2020, 07:35 AM)Benton Wrote: Excellent points. This has actually been a good thing for some businesses (mostly big business). My worry is the small businesses. They're taking a beating.

My pessimistic mind thinks the pandemic and our lack of a response has only hastened the slow march we've been on for decades. 

Once every small business starves it will be undeniable that we all owe our jobs to the ultra rich that we serve. The income disparity and service-oriented nature of our society just seems to have been accelerated.  Political policy and pandemic pitfalls waltz together. Suggesting our plutocratic president is delighted to see things go down this road might not be as hot a take as we thought.


Now if you'll excuse me I need to get upset about people who aren't me getting unemployment.

[Benton]

(07-31-2020, 04:58 PM)Nately120 Wrote: My pessimistic mind thinks the pandemic and our lack of a response has only hastened the slow march we've been on for decades. 

Once every small business starves it will be undeniable that we all owe our jobs to the ultra rich that we serve. The income disparity and service-oriented nature of our society just seems to have been accelerated.  Political policy and pandemic pitfalls waltz together.   Suggesting our plutocratic president is delighted to see things go down this road might not be as hot a take as we thought.  


Now if you'll excuse me I need to get upset about people who aren't me getting unemployment.

We may be getting off topic here a little (apologies bels), but the pandemic and hammering of small business is showing why we need to overhaul the healthcare system. A lack of access to startup funds and affordable insurance are two of the biggest obstacles for small businesses. If we're going to ever that mythical American utopia back where everybody has a good job and a two car garage, a big part of that has to be removing those (and a few other) obstacles to business startups.