Unemployment is likely to hit Great Depression-like levels. This will weaken the U.S. economy to the point that a V-shaped recovery is not going to happen.
- The U.S. is reliant on the services sector, which provides 80% of American jobs.
This week’s initial jobless claims report shows another 4.5 million Americans applied for unemployment benefits last week, taking the total number of filings to more than 26 million in just the past five weeks.
While unprecedented government spending has helped boost sentiment on both Wall Street and Main Street, it is unlikely to accomplish its goal of getting most workers back on the job.
There are 30.2 million small businesses in the U.S. as of 2018. The Paycheck Protection Program funding of $322 billion being added to the initial $350 billion tranche only adds around $22,250 per firm.That might help some mom and pop stores that only have one part-time worker, but it’s not going to do anything for those with 10 or more. We are witnessing businesses cutting jobs, with little intention of bringing them back any time soon.
On the shore, and especially in Cape Charles, small and mid-sized businesses are being crushed by the shutdown. Cape Charles is a town of small businesses.
As a reminder, PPP loans are only forgiven if 75% of funds are used to cover employee salaries. That leaves little for rent, utilities, supplies and other costs incurred by Cape Charles business owners, who are seeing significantly decreased or zero revenue.
About the Author
Cape Charles Town Council needs to show some courage and leadership. Do not follow the Governor Blackface and his unconstitutional edicts. Citizens should follow reasonable precautions and begin to frequent the beach and the park (using social distancing). Cape Charles Police should stand down and refuse to follow illegal and unconstitutional orders. Restaurants and bars should be allowed to have customers who follow social distancing as well. But remember that we take risks going out of our houses every day. If we are too frail to interact in society we stay home. Let’s not try to take all risk out of living.