TennTradition
Defended.
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- Aug 14, 2006
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Exactly. They got to work. But instead of actually doing things we’re telling tens of millions of people to eat it, live off of $1200 for an indeterminate time, and if you don’t listen we’ll fine you.
Yes, and some went to work who didn't before (many women moved to fill the gap left by men who went to war).
But the MI governor has just been wrong on this from too many angles. She is in a hotbed state and making every decision through a political lens it seems. Not a fan.
However, on the economy - I will add, this $600/week of extra unemployment is very interesting. My sister, who works in a dental office as a receptionist and has for 20 years, just had her pay go up while on unemployment due to the extra kick-in. What is unemployment pay right now - $20/hr or so? A lot of people who are out of work are used to getting less. There are no doubt people out of work who are used to getting more. Not trying to minimize the pain here. Yes, this is just for what, 4 months? And if the economic ramifications of lockdowns mean small business owners shutter and there is no work on the back side, the pain comes later without a doubt.
But, my question is - how bad is the pain now? Who is hardest hit by the lockdowns?
Sit-down food service is nailed. But most of the workers IN the restaurants, to the extent they qualify for this unemployment, are probably doing OK. Is that right? The companies are not. All the people employed in the middle, if currently out of work, are losing I would guess.
What else? Small businesses of all kinds that aren't essential. Again, the employees who work the shop are not going to hurt with that level of unemployment kicker. They likely aren't making over $20/hr. But obviously there are fixed costs for the owners and their ability to stay solvent and make rent is in huge jeopardy. Also they aren't bringing in the profits they are used to.
So it seems it is more the business-owners than the workers who are nailed. And to the extent that we can't inject enough liquidity to the business-owners through the SBA programs, that will mean huge problems with unemployment 6 months (or less) from now. But the average Joe is not facing financial doom from this to the extent the companies are there for them to come back to work in a month, or two, or more?
Is the key just keeping those companies solvent? And is the problem that we aren't able to do that?