Quote (Goomshill @ 17 May 2020 20:13)
Its becoming increasingly clear that as the buck gets pushed around, its landing on small business owners, and especially restaurant owners who are going down faster than nursing home patients in NYC
Put yourself in the shoes of a business owner right now. Those that stay open for carryout / curbside are reporting about 15-50% of their usual revenue, but their normal average profit margins were 5%. Their operating costs don't go down 85% when they lose 85% of sales, you've got property taxes, mortgages, electric, water, etc. Even shutting down temporarily and unplugging freezers there's a restaurant here that had their monthly electric bill drop from $4000 to $2500. You've still got to pay salaries of employees if you want to keep them, otherwise its closing up and laying off everyone. And those that have been furloughed? Even if you re-open and want to bring them back, unemployment paying an extra $600 means that they'll earn more money by staying home watching youtube videos than flipping burgers. The federal government has completely removed the incentive to work. You can't possibly raise wages enough to make that attractive. And on top of that, states are burying restaurants that re-open with regulations for safety, and all the costs of sanitizing stations, disposable menus, PPE- you're paying that. And between extremely low table limits (5 per store in some places) and the publics unwillingness to eat out, even if you re-open there's no way you'll recapture more than 50-75% of previous revenue at best, probably much less. There are restaurant owners up here who are trying to risk re-opening before the governor allows it, putting huge amounts of protection in place like hospital grade foggers and temperature checks at the door and every other measure you can think of- and they're having to crowdfund legal fees as the attorney general threatens them with a $25,000 fine per location.
What are these business owners supposed to do other than march on their state capitols with AR-15s?
What's your alternative though?
Some business models, like the hospitality, tourism and event industry, are just inherently more susceptible to the coronavirus pandemic than others (software, engineering, financial services). There is no way around these industries being hit the hardest.
So the only two options I see is to either bail them out entirely, effectively socializing their losses, or to refer to entrepreneurial risk and self-responsibility.
And it's not like restaurent owners are the only ones who got the short end of the stick due to corona. Those who were slated to graduate this summer are royally fucked too. Or pensioners who were planning to sell stock from their retirement fund around this time. Or compare those who just signed a new contract a couple of months ago to those whose contract comes up now. Corona is simply creating a metric fuckton of injustice based on bad luck.
This post was edited by Black XistenZ on May 17 2020 01:31pm