If you do not think this was by design, I don’t know what to tell you. Small businesses were the life blood of America. Now, they are about to be a thing of the past.
However it’s not just those businesses, their owners and employees that will be effected. They were also tenants and customers of suppliers and a viral part of a sensitive ecosystem. One that if I were a hostile foreign power, I would be doing everything I could to attack as well.
Think about that for a moment while you read this …
Just how bad were the lockdowns? Well, pretty bad in the 43 states where lockdowns were ordered but in the seven states that never locked down, things are great.
Those seven states include Arkansas North Dakota, Wyoming, Iowa, Nebraska, South Dakota, and Utah.
They had fewer cases and fewer deaths than states who locked down and their economies are miles ahead of the states that did lockdown.
Small businesses were especially hard hit since they were forced to close but still had bills to be paid. In fact, in a recent poll, three out of ten small businesses say they are worried they won’t survive 2021.
Overall the percentage is 57% but when sorted by race 79% of Asian businesses, 77% of Black businesses, and 66% of Hispanic businesses say their outlook is fair or poor.
How many people’s lives have been ruined?
79% of small businesses say they are carrying debts on their books compared with 71% before them pandemic.
Those carrying $100,000 or more in debt shot up from 31% to 44%.
That debt will crush a lot of the small businesses. Almost all businesses expect another episode during the coming year.
The two most likely troubles are “weak demand for products/services” and “government-mandated restrictions or closures.”
The National Federation of Independent Business published its January survey on Tuesday. It found that small business confidence is at an eight-month low. Furthermore, the number of small business owners expecting better conditions through the middle of the year has hit its lowest level since 2013.
It’s difficult to be optimistic about business, added Randy George, owner of the Red Hen Baking Company in Vermont, noting that his business hasn’t been allowed to have indoor dining since last April.
“We do have a lot of people coming to the window and getting sandwiches to go, but, it’s a window,” George said.
When businesses expect sales to decline, “that’s going to feed back into their capital spending plans, and their inventory investment plans, and their hiring plans,” he said.
