Hunkering Down Before the Upcoming Recession in 2020 – BoredomMD.com
There is good news, bad news and really bad news. Let’s start with the good news.
Good News
- 98% of those being tested will turn out to have other illnesses– allergy, cold, flu or something else. The flu season will decline as the weather warms while allergies will increase. Since the flu causes more deaths, that means less people dying and less people having to be tested. Meaning that more people who think they have coronavirus can be tested. As of March 23, it is now 90 % have other illnesses, so the percentage for Covid is increasing. Bummer.
- The economy has been good for the last few years so people have had a respite from the 2008 recession/almost depression. It has been hard to hire workers and now people will be looking for jobs.
Bad News
- Trump initially touted COVID-19 as a hoax, Democratic spin, and was amazed when Congress gave him more money ($8 Billion vs. $2 Billion) than he asked for to fight the virus.
- While Trump banded travel from China, his other travel restrictions were slow to be implemented and disastrous when they were implemented (see international travels in crowds at airports—now infecting each other…and returning to their homes , jobs and communities). There is a much longer delay in COVID-19 than the flu for symptoms so the infection rate is going to be dreadful.
- Trump kept saying the US was safer than other countries. It is a world economy- what about the supply chain? International travel and international business.
- No time tables- provide them even if they have to be adjusted. Makes people feel more secure.
- Federal reserve has lowered rates to Zero, hence, one of their tools to help in a recession has been used.
- Poor reporting system thereby resulting in unknown geographic clusters.
- Trump’s mixed messages startle the stock market and public. Eg. July-August….
Really Bad News
March 23, 2020 article from Bloomberg.
March 24, 2020 article from Forbes
- Trump continues to say that the stock market will rebound after “this is over.” Over 99% of America’s firms are small businesses. 88% have fewer than 20 employees and 40% have under $100,000 in revenue. They create 2/3’s of new jobs and account for 44% of the US economic activity. Suspending commerce will put many of these companies out of business.
- Giving restaurants hours of notice that would have to close was disastrous. Tons of fresh food that would have to be thrown out. No time to convert to “take out” and no time to think about how to manage staffing, etc. Many, many restaurants will go out of business.
- Consumer confidence drives the economy. With no time frames mentioned and Trump saying this could go on until July and August was disastrous. Should have set specific guidelines, eg. “we are sending out 4 million test kits, we will have results on this date, we will have everything closed for two weeks, then based on results we will modify or extend the closings another two weeks. We believe the flu will end on this date, we will have more testing then among those who might be infected.
- Trump not spelling out what he is going to do for small business and immediately how they can apply for loans. Loans won’t help a business that only makes $100,000. They need short term grants, not loans. Needs a website with specific suggestions.
- Airlines, cruise lines, events that impact businesses (St. Patrick’s, Easter) , theatres, etc. are going under water.
- NY Governor- avoid travel between 8pm and 5am daily. This is to get the 20 and 30 years olds to quit gathering and spreading the virus as they may have mild symptoms or be asymptomatic.
- Since older adults (65+) were at greater risk, immediate steps should have been implemented to protect this group. Cleaning, visitor restrictions, safety for workers.
- Those traveling abroad – expecting them to stay at home for two weeks upon return…what % did?
What You Can Do
- Sit down and examine all your bills and where you can cut. For example, cable- get Roku ($29- one time purchase) and Netflix ($9 a month) and save almost $800. Yes, sports are an issue so you might want to add another $10 to your monthly fees. You don’t have to get Netflix if you don’t want to as Roku has movies, Newson (channel 2 news), plus CBS, NBC, ABC, CNN etc. which are all free.
- Another example, use Tracfones—savings on the taxes alone will help and you can save another $1000. You can in most cases use the phone you have now.
- Food- produce markets (eg. East Aurora Produce Market at the Flea Market) and Aldi can cut your food bill by 20%.
- Insurance- shop coverage and see if there are savings there.
- Gasoline- Kwik has a frequent user card (not credit card) that saves you a few cents a gallon all year long.
- Eat left overs. Always amazing how much food Americans throw out. Freeze it if you can’t or don’t feel like eating it immediately.
- Gas – look at your gas bill and see if another supplier offer better rates.
- HEAP – see if you qualify for monies that help with heating bills. There is also an extension you might qualify for once HEAP runs out from the utility company.
- If you still have a job, save some cash if you can. In 2019 69% of Americans have less than $1000 in savings including 45% have no savings at all. Since there are so many places that are closed, save your gas money.
- Get a side job – from dog walking to baby/children sitting- which is key for those who have jobs but kids are out of school. DO it NOW! If you have a job for a small business that may not make it through these hard times, start looking for another job NOW.
- You can also join a website like comor Thumbtack.com, post an ad on Craigslist or contact local kennels to see if they need anyone to exercise the canines under their care. https://www.moneytalksnews.com/cash-with-canines-7-steps-start-dog-walking-business/
- Work at home as a customer service rep. https://www.moneytalksnews.com/top-25-companies-for-work-from-home-jobs/
- If you are on medications and qualify economically, many drug companies offer free medications. See Patient Assistance Programs.
- Pay down debt- either by the smallest debts first or those with the highest interest rates. Do NOT use credit cards unless there is a huge emergency.
- List stuff to sell on Craigs List.
- And, yeah, we get it – cutting expenses and walking dogs aren’t going to be enough—but remember others are in the same boat. Hang in there.
- If you have money, support small businesses – restaurants, shops, etc. once the bans are lifted.
