The virus pandemic shock is generating deep economic scarring, the likes of which many have never seen before. The virus-induced downturn has led the economy into a “liquidity trap,” in which interest rates will likely reside on the zero lower bound until 2023, and monetary policy could have trouble stimulating the real economy besides artificially inflating asset prices. As Washington pumps fiscal injection after fiscal injection into the real economy, creating unstable artificial growth, the latest lapse of fiscal support, now 46 days, has sent the economy into another slump.
For more color on the deep economic scarring, not just a deterioration in the labor market, we turn our attention to a Yelp report published Wednesday that revealed as of Aug. 31, 163,735 businesses have closed on the platform, a 23% increase since mid-July.
Yelp pointed out an increase of permanent business closures over the past six months, now reaching 97,966, or about 60% of closed businesses will never reopen their doors again.
“As of August 31, 163,735 total U.S. businesses on Yelp have closed since the beginning of the pandemic (observed as March 1), a 23% increase since July 10. In the wake of COVID-19 cases increasing and local restrictions continuing to change in many states we’re seeing both permanent and temporary closures rise across the nation, with 60% of those closed businesses not reopening (97,966 permanently closed).”
“Overall, Yelp’s data shows that business closures have continued to rise with a 34% increase in permanent closures since our last report in mid-July,” Justin Norman, Yelp’s vice president of data science, told CNBC.
Yelp notes restaurants, shopping and retail, and beauty and spas have been damaged the most with temporary and permanent closures since March 1. About 32,109 restaurants closed on Yelp, with 19,590 of those permanent, or about 61%. Shopping and retail saw 30,374 business closures, with 58% of those permanent. Beauty and spas saw 16,585 closures, with 42% of which are permanent.
Professional services, like roofing, landscaping, accountants, and lawyers, experienced some of the smallest declines. Meanwhile, restaurants and retail businesses have been struggling the most. Readers may recall, dying restaurants have been panic selling assets on Facebook Marketplace as the industry remains in a bust cycle.
Los Angeles, New York City, and San Francisco were three metro areas that saw the most closures and permanent closures.
And what does this all mean? Well, policy tools, if that is monetary of fiscal, are producing diminishing returns that will likely result in a recovery that does not resemble a “V.” The road to recovery could take years as the latest analysis from Opportunity Insights of US business activity reveals the number of small businesses open is plunging.
And by the way, the fiscal cliff, which we’ve warned about since late July (see: here) – is finally showing up in economic data as online spending growth hit a wall. Lower spending by consumers will pressure businesses and lead to more closures.
What this all means is that America’s coming double-dip recession could be dead ahead.
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Well, Auntie doesn’t know much about how the Lumpen are doing or what those cornfuzing Yelp statistics are revealing, however, at least, The Evil Fuckers can celebrate robust financial markets, capital growth, and astonishing financial windfalls.
https://www.youtube.com/watch?v=5dd-Un22DzA
Suckers.
https://reclaimthenet.org/covid-19-misinformation-disinformation-task-force/
Isn’t it amazing what the government can do to private enterprise when they really go after those who are not dependent on government? Pretty soon, the majority of Americans will be waiting on their monthly allotment from their benevolent masters and will be happy to take the injection, just to get another month’s supply of slop.
You nailed it.
“For there shall arise false Christs, and false prophets, and shall shew great signs and wonders; insomuch that, if it were possible, they shall deceive the very elect.”
Matthew 24:24
The word ‘great’ does not mean something wonderful, but more overwhelming.
This country is being overwhelmed, and it is not a joke.
Support Gwyneth Paltrow!!!!
Buy one of her vagina scented candles!!!!!!
https://shop.goop.com/shop/products/this-smells-like-my-vagina-candle?country=USA
Or, feel free to ask me about my Smells-Like-Stucky-Cock candles.
Now that’s some funny shit.
That arrogant talentless Cunt knows what she can do with her fucking candles….
Blame the government 99% (businesses fail too without government assistance, so I’m allowing 1% for that).
We can knock over the first domino, and not have to worry about losing any others.
We can continue to reap the benefits of the way things are, even as we destroy the way things are.
As has been said before, we have the most incompetent group of self-appointed elites in the history of the planet.
Okay, can 60% of that annoying fake-review website close too?
It blows my mind that the residential real estate market is on fire. With all this economic devastation, how can this be?
It’s a gamble, stock market or real estate.
Tangible assets, even when immovable > Bits and bytes
Tangible assets with productive capacity > Everything
People are escaping. Some because they think something is wrong (get out of bits and bytes). Some because they know something is wrong (get into arable land).
It’s where the very term “suburbium” came from; flee Rome to the countryside.
“Tangible assets with productive capacity > Everything”
IMO, this has always been the long term answer. Financial trickery and fiat fucks this all up. I sure hope my current gamble works out…productive bits and bytes.
Etymology for the win.
https://www.etymonline.com/search?q=suburb
It is like an ostrich sticking his head in the sand and forgetting about what he is leaving exposed for some others to take advantage of. People are seeing the super low interest rates and jumping at the opportunity to “upgrade” their house while keeping payments level. They are not paying attention to the destruction of the economy around them.
GnL,
The markets are from people leaving blue states like CA, Ny, NJ etc.
Idaho’s market is full of them.
the one group not impacted by covid: .gov workers, impossible to fire, barely works on Mondays or Friday’s.
I did a summer intern for NYS DEC, that was enough to realize these are the least motivated people you will ever meet.
You nailed it , know a master plumber in early 30’s got tired of the contract plumbing business dealing with dead lines , putting up with Hispanics on every job site people not showing up or showing up late leaving early or showing up hungover or stoned . So he applied for a federal maintenance plumbing job and got it !
He could not believe the difference no dead lines no rush a small reduction in pay but a huge increase in benefits and he will retire after 20 years under 55 if he wants to .
Why waste your productive years on a company that can and will throw you under the bus and bankrupt your retirement plan at any moment .
Eventually these gravy government jobs must go the way of the dinosaurs but till then don’t waste your working life in the private sector because sooner or later you will get fucked with a burning log