Sectors of the economy that won't recover from the pandemic

[CenterField]

https://www.marketwatch.com/story/th...of2&yptr=yahoo

I find that the idea that consumer spending will remain down even after this pandemic is over, is very concerning, given that it is responsible for 70% of the world's economy.

I guess if we get an effective vaccine and things go truly back to normal, little by little consumer confidence will return. Let's hope so.

Certain sectors though will never recover. Certain firms who have offices in expensive downtown real state may have developed a liking for teleworking and will not occupy those spaces again. And so on.

[hanger4]

I imagine the hardest hit are home owned home operated businesses, especially eateries. I know we've lost a number around here.

[CenterField]

I imagine the hardest hit are home owned home operated businesses, especially eateries. I know we've lost a number around here.

Yes, there's been even some high profile closings like high end, luxury ones, that have closed down permanently.

[The Xl]

Well played government. Good job creating a problem 1000 times worse than the virus itself.

[Cletus]

There are no sectors that could not recover from the pandemic. What is killing them is government mismanagement of the pandemic, mostly at the state level.

Between that and the cowardice and nanny state mentality of so many Americans, many businesses will indeed not survive.

[CenterField]

There are no sectors that could not recover from the pandemic. What is killing them is government mismanagement of the pandemic, mostly at the state level.

Between that and the cowardice and nanny state mentality of so many Americans, many businesses will indeed not survive.

The article seems to indicate that low consumer confidence is more of an issue than actual lockdowns. If people are afraid to go out and eat in a restaurant, it doesn't matter if the restaurant is open or not, business will still be down.

See, all 50 states have started reopening already but while the virus is still going around, the issue may be that most of the public will just not feel comfortable going out and eating/shopping etc. as numerous as before. Given that many of these businesses operate with small profit margins, they are in trouble.

In my state which has already reopened with only a few exceptions (gyms, movie theaters, a couple of others) the number of new cases and the number of new hospitalizations are climbing up again, which make people fearful. There's no more stay home order, no more distinction between essential and non-essential businesses, and we still don't see as much car and foot traffic as before.

Just my own example, I'm dying to go to one of my favorite pizzerias which has reopened. But when we looked at the stats my wife and I said, nah, let's just stay home this weekend.

So, it's not just the lockdown. There is fear factor, a consumer behavior factor, and that won't change so easily until there is a vaccine, specially if the numbers keep climbing up.

[Cletus]

Yes, there is a fear factor, fostered not by empirical knowledge of the effects of the virus, but by GOVERNMENT and media hysteria.

[Cotton1]

Thank God for Wal-Mart! At least you get to be price gouged all under one roof.

[HippieStyle]

60% of the call center I work at is working remotely, overheard from HR. Feels like more- when everything started we weren't social distancing b/c the desks just weren't far apart enough, so I guess people did it organically. I have older parents so the only reason I'm not out having fun is because they'll be paranoid to have me back in the house.

[carolina73]

Some people are just afraid to live. They want others to live like they do, so they feel less ridiculous.