5 ms·

There are a couple of things: 1) most Americans can’t afford an unexpected $400 expense. This multi-month lockdown will be much more than that. I doubt landlor

There are a couple of things: 1) most Americans can’t afford an unexpected $400 expense. This multi-month lockdown will be much more than that. I doubt landlords will simply forgive rent, so any Americans will owe several months of rent without any revenue. That will mean several months of no disposable income to go spend at a bar or a restaurant. That means small businesses like those will suffer longer than essential staples like grocery stores. 2) Travel And tourism are dead and will be dead until a vaccine is available. Are you going to risk getting sick in a foreign country, especially when travel insurance likely won’t cover pandemics anymore? Tourism is definitely a large source of revenue for bars and restaurants will be a huge impairment on revenues as well. 3) People aren’t necessarily going to come back to the same jobs post-coronavirus. They might flock to jobs that pay better or have better health benefits. There might be a significant delay in getting staff up and running or they may need to pay higher wages. 4) more to point 1, many people have multiple part time jobs to afford to live. Losing even one of those jobs will affect them deeply. If they can’t replace their income or get those same number of jobs post-coronavirus, their spending will also be curtailed. All of these contribute to lower revenues for business owners once the economy “starts back up”. I don’t think it will be a fast recovery. A lot of people will be financially hurt for a while. Owners will need some very thick skin and deep pockets to wait out for revenues to come back. Some may see impaired revenues for months longer, which probably isn’t enough to keep the business afloat.

theferalrobot 7y ago
> most Americans can’t afford an unexpected $400 expense This is just not true despite the fact that a few media sources twisted a statement from the reserve board a while back. Here is a fact that may help provide some context: The median net worth of a us household is $97,300.
- cpursley 7y ago
  You can't pay your light bill or insurance deductible with your net worth
  - theferalrobot 7y ago
    Except: The actual statistic is that when asked if they could cover an unexpected 400$ bill - 40% of Americans responded that they would sell something to pay it OR couldn’t pay it Secondly the survey itself admits that it had an, “oversample of individuals with a household income less than $40,000 per year” https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor...
- remote_phone 7y ago
  I think you need to educate yourself on how Americans are doing financially. https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-cant-handle-a-400-unexpected-expense.html https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-...
  - theferalrobot 7y ago
    Even your source says a minority of Americans (even though it again, cherry picks from that study). The actual statistic is that when asked if they could cover an unexpected 400$ bill - 40% of Americans responded that they would sell something to help pay it OR couldn’t pay it. Secondly the survey itself admits that it had an, “oversample of individuals with a household income less than $40,000 per year” https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor...
Jommi 7y ago
1) source on that? AFAIK the number just means how much americans have in liquid cash. 2) Why would Tracel Insurance not cover pandemics? Mine did and will continue to cover it. 3) What's your logic with that the delay? This is over 5M people unemployed, and the extra stimulus will end at some point. If they want to keep their lifestyle they can't afford to wait for a higher paying job
- remote_phone 7y ago
  1) https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-cant-handle-a-400-unexpected-expense.html https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-... 2) travel insurance started to deny pandemic claims. Your travel insurance might have covered it now, it won’t cover it by next year. https://www.aarp.org/travel/travel-tips/safety/info-2020/insurance-coronavirus-coverage.html https://www.aarp.org/travel/travel-tips/safety/info-2020/ins... 3) I don’t know how your point contradicts mine. Also it’s 22M unemployed now, not 5M.
  - theferalrobot 7y ago
    1) doesn’t say most Americans and doesn’t even cite the full response (nor does it provide context for the question in the survey). The actual statistic is that when asked if they could cover an unexpected 400$ bill - 40% of Americans in this survey responded that they would sell something to help pay it OR couldn’t pay it. We don’t know how many said they couldn’t and we don’t know why those who said they would sell something said that. Secondly the survey itself admits that it had an, “oversample of individuals with a household income less than $40,000 per year” https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor... The same survey also found: “74 percent of adults said they were either doing okay or living comfortably in 2017“
  - Jommi 7y ago
    Did you read your own link? >Four in 10 adults, if faced with an unexpected expense of $400, would either not be able to cover it or would cover it by selling something or bor- rowing money. So exactly like I said, 40% don't have liquid cash of over 400$ consistently on their bank accounts. That means it's not bound to be an I come problem, but might be a symptom of the ease of debt/credit in modern times.
standardUser 7y ago
"Travel And tourism are dead and will be dead until a vaccine is available." I don't understand the emphasis so many people place on a vaccine (which may never be created). SARS ended without a vaccine. MERS never crippled international travel. Both are coronaviruses and vaccines could not be developed for either. The Spanish Flu, which was vastly more devastating than even our worst projections for COVID-19, ended without a vaccine.
- remote_phone 7y ago
  Vaccines for SARS were not developed because grants dried up because the virus died off so researchers stopped working on a vaccine. By all accounts, a vaccine for coronavirus is probable since it doesn’t mutate that quickly. The world was not nearly as interconnected as it is now. So the virus spreads faster and disrupts supply chains and economies much easier. Tourism is also a much bigger part of economies now.
- brenden2 7y ago
  People keep comparing this to the Spanish flu, but there was a big difference between this and the Spanish flu: most people who died from Spanish flu actually died from bacterial infections and other complications. Back then, antibiotics weren't really a thing yet.
  - standardUser 7y ago
    I don't like the comparisons to the Spanish Fly either, but we need to keep in mind that a vaccine is one speculative way this could end. People increasingly refer to it as inevitability.

theferalrobot 7y ago

> most Americans can’t afford an unexpected $400 expense This is just not true despite the fact that a few media sources twisted a statement from the reserve board a while back. Here is a fact that may help provide some context: The median net worth of a us household is $97,300.

cpursley 7y ago
You can't pay your light bill or insurance deductible with your net worth
- theferalrobot 7y ago
  Except: The actual statistic is that when asked if they could cover an unexpected 400$ bill - 40% of Americans responded that they would sell something to pay it OR couldn’t pay it Secondly the survey itself admits that it had an, “oversample of individuals with a household income less than $40,000 per year” https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor...
remote_phone 7y ago
I think you need to educate yourself on how Americans are doing financially. https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-cant-handle-a-400-unexpected-expense.html https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-...
- theferalrobot 7y ago
  Even your source says a minority of Americans (even though it again, cherry picks from that study). The actual statistic is that when asked if they could cover an unexpected 400$ bill - 40% of Americans responded that they would sell something to help pay it OR couldn’t pay it. Secondly the survey itself admits that it had an, “oversample of individuals with a household income less than $40,000 per year” https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor...

Jommi 7y ago

1) source on that? AFAIK the number just means how much americans have in liquid cash. 2) Why would Tracel Insurance not cover pandemics? Mine did and will continue to cover it. 3) What's your logic with that the delay? This is over 5M people unemployed, and the extra stimulus will end at some point. If they want to keep their lifestyle they can't afford to wait for a higher paying job

remote_phone 7y ago
1) https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-cant-handle-a-400-unexpected-expense.html https://www.cnbc.com/2019/07/20/heres-why-so-many-americans-... 2) travel insurance started to deny pandemic claims. Your travel insurance might have covered it now, it won’t cover it by next year. https://www.aarp.org/travel/travel-tips/safety/info-2020/insurance-coronavirus-coverage.html https://www.aarp.org/travel/travel-tips/safety/info-2020/ins... 3) I don’t know how your point contradicts mine. Also it’s 22M unemployed now, not 5M.
- theferalrobot 7y ago
  1) doesn’t say most Americans and doesn’t even cite the full response (nor does it provide context for the question in the survey). The actual statistic is that when asked if they could cover an unexpected 400$ bill - 40% of Americans in this survey responded that they would sell something to help pay it OR couldn’t pay it. We don’t know how many said they couldn’t and we don’t know why those who said they would sell something said that. Secondly the survey itself admits that it had an, “oversample of individuals with a household income less than $40,000 per year” https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf https://www.federalreserve.gov/publications/files/2017-repor... The same survey also found: “74 percent of adults said they were either doing okay or living comfortably in 2017“
- Jommi 7y ago
  Did you read your own link? >Four in 10 adults, if faced with an unexpected expense of $400, would either not be able to cover it or would cover it by selling something or bor- rowing money. So exactly like I said, 40% don't have liquid cash of over 400$ consistently on their bank accounts. That means it's not bound to be an I come problem, but might be a symptom of the ease of debt/credit in modern times.

standardUser 7y ago

"Travel And tourism are dead and will be dead until a vaccine is available." I don't understand the emphasis so many people place on a vaccine (which may never be created). SARS ended without a vaccine. MERS never crippled international travel. Both are coronaviruses and vaccines could not be developed for either. The Spanish Flu, which was vastly more devastating than even our worst projections for COVID-19, ended without a vaccine.

remote_phone 7y ago
Vaccines for SARS were not developed because grants dried up because the virus died off so researchers stopped working on a vaccine. By all accounts, a vaccine for coronavirus is probable since it doesn’t mutate that quickly. The world was not nearly as interconnected as it is now. So the virus spreads faster and disrupts supply chains and economies much easier. Tourism is also a much bigger part of economies now.
brenden2 7y ago
People keep comparing this to the Spanish flu, but there was a big difference between this and the Spanish flu: most people who died from Spanish flu actually died from bacterial infections and other complications. Back then, antibiotics weren't really a thing yet.
- standardUser 7y ago
  I don't like the comparisons to the Spanish Fly either, but we need to keep in mind that a vaccine is one speculative way this could end. People increasingly refer to it as inevitability.