Although our county has fared well against corona-virus, the economic shut down imposed by state and local government is ruining some people’s lives. Nationwide, 22 million people have lost their jobs.
The shutdown has impacted virtually every sector of the economy in varying degrees, but small business is the hardest hit. Particularly those businesses deemed non-essential, like restaurants, hair salons, health clubs, and retail stores.
So far, the public sector has not been impacted to the same degree, but that will occur when revenues plummet. The local governments will likely spend their reserves on basic services and make major cutbacks.
The big question, how is the government’s over reaction going to impact the economy long term. Mike Manchak is president and CEO of the San Luis Obispo county Economic Vitality Commission. He says that Chris Thornberg of Beacon Ecomonics says the rebound will be much stronger than in 2008-2009 after the real estate collapse, which is good news. Next week here on KPRL, we’ll talk with Mike Manchak about impacts to the economy and how the rebound will occur.
Have institutional changes occurred which may alter the way we shop in the future? For instance, have people learned the value of retail and the reason we need local retail in our economy. Manchak will discuss these and other issues related to the recession caused by the government imposed shutdown to the coronavirus scare. That’s next week on KPRL.