As COVID-19 crashes into the economy, workers and business owners are wondering if anything can save them from financial ruin

Sonia Bautista was living paycheck to paycheck in one of the most expensive regions of the country when the shot crown, and their finances went from bad to catastrophic. The employer, the Palace Hotel in San Francisco, a luxury four-star Marriott property, said the company had slowed down and did not need more, when you cut the man out of five his work in a hotel coffee shop had two days a week. “I do not know how I’ll pay the rent,” said Bautista. Workers and businesses across the country have an emergency situation in a similar fashion, as the consumer practice social distancing the spread of COVID-19 and follow the recommendations and, in some cases orders- stay at home to avoid. Health authorities in several counties in the Bay Area have told residents, “shelter in place” at least until April 7, so that only companies that “essential” services, such as grocery stores and restaurants offer take-away do to stay open. The governors of New Jersey and New York, among those who have ordered the closure of gyms, cinema, casino and banned meetings of more than 50 people, and the bars and restaurants only offer takeaway. Even in places no prohibitions, bars and restaurants are slow to see the business experience disrupted Hotels and venue massive cancellations, theme parks are closed in decline, and airlines are cutting. Economists say that the abrupt halt could be a bigger blow to the world economy that the terrorist attacks of 11 September 2001 in spending, since no one knows when it is safe for people to walk again. exacerbating the crisis impact on the services sector, the collapse in the past weather as people continue to leave their hair cut and place. This time came that sector of the US economy to a halt, since most of the jobs can be carried out not in him from afar. It is updated here with our daily newsletter crown. “The next two weeks will be a sharp rise in unemployment seen,” said Michael Hicks, an economist at the Ball State University found that 28 million calculated jobs or one-sixth of the United States to work in danger of layoffs. The financial collapse every shot now workers are paid only when they appear to work, but it is also a dilemma for small businesses whose income is to create, dried invoices requesting party. “Restaurants, theaters, bars, all of us are reduced to a very thin edge,” said Dan Williams, CEO of Plan Battle, San Francisco art venue, restaurant and bar with 25 part-time employees. “We had hoped to make money this week for the things we pay already bought.” Sales Piano Fights 85% restaurant last week dropped, and its turnover decreased by 95% theater, Williams said. He and his three co-owners has launched a crowdfunding campaign on PayPal saying that they needed to raise at least $50,000 to survive the next four weeks. Piano struggle to pay food, spirits and beer vendors cover insurance bills, and wants the paid employees hold, even if you do not work. Williams and his co-owners worry about catching a loan to get out of going to the business afloat, but to keep up with the uncertainty surrounding the crown, which are concerned about the ability to repay these loans. The economies of the world are already experiencing a significant contraction in economic activity that will probably last through the first half of the year. JP Morgan economists predicted that the US economy would shrink by 4% in the first quarter and up to 14% in the second quarter, while the economy of the 19 nations would shrink with the euro of 15% in the first quarter and by 22% in this Second. The economy begins to expand in the second half of the year, they said, even earlier in China, which, they say, the growth will be seen in the second quarter of 2020, as life begins to normalize there. “I am very concerned about the sharp slowdown of the economy, and the fact that companies are required to close,” said Mark Zandi, chief economist at Moody’s Analytics, which provide that the US economy by 1, 6% in contract first quarter and 2.5% in the second quarter. “Many small businesses across the country have no cushion money.” The layoffs are common in all areas. Books, a beloved Portland, Oregon Library, said permanently by some lay workers; MGM Resorts International said it would begin soon leave and downsizing; Truck drivers at the Port of Los Angeles have lost their jobs slows down international trade. Rudy Gonzalez, executive director of the Council of the San Francisco Labor estimates that there are 10,000 unionized entertainment and hospitality workers, including housekeepers, drivers and artists from work. Dozens of films and television shows have ceased production, leaving people like Zoltan Olgyay, an area of ​​Los Angeles set-builder for HBO Barry, unemployed. Usually when Olgyay close a show, a 30-year veteran of the industry would find just another show, but “not now,” he says, because so much production is suspended. share his feeling that many workers that can rotate anywhere. Most of those who were on leave, are hourly workers who were already scraping; The 40% of Americans would have trouble covering unexpected costs $400, according to a Federal Reserve survey. In Washington, Congress passed a law that some two weeks workers paid sick leave to give, but supporters say it is not enough to protect the millions of workers who can not buy the food can. “Now really worried about surviving workers,” says Saru Jayaraman, co-founder and president of the opportunities Centers States restaurant that has contributed to an emergency fund for employees of the service and tipped to be launched in March 16. “In these times of crisis,” he says, “The workers have nothing to fall back on.” Like many New Yorkers, Rosa Mendez, it is a fraud. He works as a server in a restaurant, the second bedroom rented his apartment on Airbnb and is a performer-last week began its first appearance as a voiceover artist. But the restaurant where she worked closed on Friday canceled the concert voice-over, and so they Airbnb guest up to mid-April. “People like me who has an income of zero hustles right now,” he says. The dislocations are of them a certain number of hours depending stressful enough for workers, no savings, but also threatens many workers whose health insurance is set. This includes Bautista-by agreement between their union, Unite Here Local 2 and Marriott, which receives only the health insurance if they work at least 48 hours per month. (Marriott has returned not apply for comment.) Tony Politzer, who works for a company of concessions and catering in California, was on indefinite leave last week. He can make money from the family, which is sending the short term, if necessary, but is concerned that he lost his health insurance. He has diabetes type 1 and took his current job in part because of the offered health insurance. Some businesses with hourly employees, including Amazon, Apple, Google, Facebook, Microsoft and Twitter are pledging to pay them, even if they are not needed their services. Disney, which closed its theme parks and hotels, it is said that its service employees 43,000 for lost hours at least until the end of the month to pay, and Patagonia, that for at least two weeks ended as of March 13, said his business, which would pay all employees during this period. But many small businesses do not have this luxury. “He can not really a business event when there are no events going on,” says Stan Kosouk who supports his family on his small business, a photo booth rental for events; he’s worried that it’s going to have to go into debt to pay off his mortgage. Introduced called GoFundMe side up “Crown Halted my small business” and $4,500 per month asks need to support his wife and two children. Minister Steven Mnuchin finances Republican senators warned on Tuesday that without congressional action, reduction of the crown framework, the unemployment rate could go to 20%. Congress debated a bit ‘, to act, but to support both parties to get an idea coalescence controls was sent directly to Americans to help resist the crisis. Economists say the best way to make a lasting recession with a large stimulus package to support workers and small businesses in order to avoid the same way. Zandi of Moody, recommends the insurance eligibility for unemployment to expand and offer a one-time $1,000 payment to workers who pay payroll taxes and social security recipients. It is also recommended, let the people of the mortgage late payments if their financial debts guaranteed by government-sponsored enterprises such as Fannie Mae or Freddie Mac and allows small delay business loans that are guaranteed by the Small Business Administration. “A stimulus is not the recession will stop,” he says. “But there’s a lot to say about the severity of the decline and the kind of recovery that we have.” During the last recession, had not paid enough attention to people who sign up with large bills and had to face bankruptcy or go deep debt found, says Ramin Toloui, who was an assistant secretary at the Treasury Department during ‘ Obama administration and is now a professor of the practice of international finance at the Stanford Institute for Economic Policy Research. Indulgence practice not to miss payments of the order-is due to make the key is that it does not happen again, says Toloui. “The country is affected by a sudden shock, people going to work and is paid to prevent,” he says. “Logically, we should not expect to make any payments their debts in a timely manner”. But small business owners and workers ask if congressional action suffice. Checks from the government could help people buy food and pay the rent, but will do so before passport especially if refuge-place constraints are not yet filling concert halls, restaurants, or in substitution. “If people get $1000, but you can not leave the house,” Williams, Piano says Lotta, “what good is that?”
Picture copyright by Timothy Fadek Redux