Coronavirus Is an Economic Tsunami for Service Industry

She called each client to confirm their weekly appointments, and they all canceled. Others were elderly clients who didn’t want anyone to come into their homes. Others were working at home and did not want to be disturbed.

Langevin, who cleans everything by herself, says: “I understand when people freak out about the virus.” “I don’t understand when people say, ‘I’m at home and this isn’t convenient.’ It’s just like, OK, this is my income. Rent is due in 2 weeks.”

Photos of America at Standstill

Langevin is one of the millions of Americans who are watching their livelihoods disappear as the novel coronavirus that has spread across the U.S. and killed over 100 is wreaking havoc on the economic system. Since the weekend, Ohio and Washington have taken steps to shut down or restrict the operation of bars and restaurants.

Many businesses have closed voluntarily, and more are likely to follow as potential customers take cover.

According to CNN, a recent Moody’s Analytics report found that “nearly eight million jobs” in the U.S. are currently at high or medium risk. This is more than half the 153,000,000 jobs that exist in the overall economy.

Recent events have left Americans feeling shocked, afraid, and concerned about the federal government’s ability to provide them with much-needed relief.

Langevin: “It is frightening to think of how long it will last.” “Two weeks? Fine. I mostly live paycheck to paycheck. Two months? “Two months will hurt.”

Josue, a 27-year-old Denver resident, is also coming to terms with the drastic changes in his financial situation. His entertainment production company flourished just last week. It ran successful comedy shows at bars and restaurants all over the city. Few people attended his previous event, which was held on Friday. On Monday, Gov. Jared Polis ordered bars, restaurants, and other large gathering areas in Colorado to close for 30 days.

Fed returns to crisis mode. Flores started a GoFundMe campaign to help Denver area comedians through this crisis. “I have had no income for the last two or three nights, and this is not just about me. There are also millions of other people in the service, hospitality, and entertainment industries. In the past 20 months, I have also been driving Lyft or Uber every day. “This virus ended it all.”

Federal officials are scrambling as Americans adjust to their new normal. The Trump administration announced a plan on Tuesday to send cash payments directly to Americans as quickly as possible. This is part of the $1 trillion stimulus program that also includes over $50 billion for the airline industry and $250 billion for small businesses.

This package could be added to a box of more than $100 billion passed by the House, which would provide paid sick leaves, unemployment insurance, and other aid for struggling workers.

Experts say that the price of the current administration’s plan, which is the most expensive in history, reflects how serious the economic problems posed by coronavirus are.

A doorman wearing a protective glove speaks with a taxi driver in front of his building, March 17, 2020. A recent Moody’s Analytics analysis revealed that “nearly 80% of jobs in the U.S. are at moderate or high risk today.” (JOHN MINCILLO/AP).

Seth Hanlon is a senior fellow with the Center for American Progress in Washington D.C., a liberal think-tank.

“Even after September 11, things were shut down for a couple of days, but not to this extent. I don’t believe we have a full understanding of the situation. “… At least hundreds of thousands of workers will lose their jobs in the next month.”

People out of work are watching closely as lawmakers make their proposals and trying to be realistic in terms of what they can expect.

Andy Adelman owns Casablanca, a Moroccan-inspired restaurant in the New Orleans region. He says that given the economic devastation of the country, it will be difficult to meet the needs.

Adelman’s business slowed over the weekend. But by Monday, when Louisiana banned dine-in service, he began to wonder if it made sense to continue operating.

“I came back [Monday] to talk to my wife and said, ‘We must close.’ It’s not a financial issue, but I’m more concerned about putting my staff in a situation where they might get sick and then infect their family.

Adelman was worried about some of his scared employees. He gave them extra money before they left. He says: “I wish I had more money to give, and I wish that I was one of those companies who could still pay them, but it’s not possible.”

Flores thinks it would be “a great idea” to give all Americans $1,000 checks, as proposed by Republican Senator Mitt Romney from Utah. Flores asks: “Why not give the same amount of money to working adults, as industries get billions in financial support?”

Langevin is afraid she will fall through the cracks as she does not qualify for unemployment benefits. She’s been wondering if a government-mandated locking down similar to the one in Italy would be beneficial to her. She says that if the government did this, she might be able to receive some benefits.

Trump and Congress Score Poorly in Virus Response Camille Busette, a senior fellow at Brookings Institution, Washington, D.C., think tank, worries that the Trump administration’s stimulus package will not go far enough in helping the most vulnerable citizens of the United States.

She says that “what I believe is missing is a sense of empathy and coordinated federal, state and local responses, particularly for those who are on the low end.” “People with limited means who may be living paycheck-to-paycheck will find it difficult to buy groceries, even if they are able to leave the house.”

Busette believes it is time to stop disconnecting those who cannot pay their utility bills. She also believes that similar exceptions need to be made for people who are unable to afford housing, cell phone service, car payments, and medical care. She says that we should be compassionate with those who can’t afford to pay their bills.

Brandi Tonkel was a 16-year waitress at Pizza Hut Fort Wayne in Indiana when the state temporarily ended in-person dining.

She says, “My boss sent me a text message and said that if there were any kitchen or delivery hours available I could come,” she says. But it’s still not guaranteed. He said that they had no other choice and didn’t wish it to be this way.

Tonkel, a mother of a 13-year-old daughter, began looking for online work on Tuesday. She says, “I am pretty good at saving money so I have a emergency fund.” If this situation continues beyond the end of March, then I will panic.

 

Leave a Reply

Your email address will not be published. Required fields are marked *