Saturday, April 18, 2020

Dave is Scared of the Next 6 Steps: What Newsom's New Rules Could Mean for Small Businesses

                 On Tuesday, Gavin Newsom introduced his six-step plan to return California to a more normal state—keyword being "more".
                 1. Firstly, we need better ways to monitor the populations.
                 2. We must then protect those most vulnerable to the virus.
                 3. We must be prepared for a surge in demand for healthcare.
                 4. There must be enough pain alleviators and therapeutics for the demand.
                 5. The current social norms change to prevent future spreads of viruses.
                 6. Finally, people and businesses alike must be ready to quickly return to shelter-in-place if necessary.  Holy shit.
                  So, the economy has already been in the tank for a bit and it's sinking further.  Business confidence and consumer confidence are already down.  But looking at the six-step plan, it seems harder than ever for small businesses to survive this.  Disclaimer: I understand the necessity.  Let me introduce you to Dave.  Dave is the owner of a local coffee shop downtown.  Dave looks at step 1, and he sees that it is out of his control in the present moment to help the state with contact tracing/expanding testing.  He says to himself, "Wow, I have no idea how long this will go on."  Okay, step 2.  Well, I can't protect the elderly or those with preexisting conditions any better than 6 feet in between, and I know that's not enough for them.  Steps 3 and 4 are a no-go, as Dave is not in the healthcare business.  Hold up.
                  Step 5.  Dave just found out that he is going to have to permanently alter his business setup and model.  In his tiny coffee shop, he is going to have to ensure customers and employees alike maintain a six-feet distance at all times to prevent the spread of future viruses.  There's no room for that!  What about my ambiance?  Everyone used to love hanging out at Dave's shop, and the environment may have been worth more than the coffee.  Dave is going to suffer, and his PPP will only last so long given how much is going to bigger businesses.  Stupid capitalist government greedy pigs, he thinks to himself.  Then came step 6.
                  Ultimate heartbreak.  Even if Dave is to go for it, the same conditions could rapidly return.  The public is already scared of entering stores.  He's scared.  Should he keep his business alive if it's probably not going to make a profit for a little while again, and if it could return to practical shutdown?  Dave is scared.
                  Small businesses are going to suffer very much from the coronavirus response, and while the response is just and important, it will likely take dreams away from many Americans.  Big businesses may also experience losses in efficiency with new infrastructural regulations, so individuals across the board are going to get hit.  Dave's situation is based on the true story of a Los Altos Downtown coffee shop.  And they don't know what to do.

p.s. I love Gavin Newsom and these economic and social effects could have been prevented significantly if Trump hadn't handled this situation better from the get-go.

1 comment:

  1. Very interesting to look at this from the perspective of a shop-owner. It gives a new side to it, but like you said in your disclaimer, there is nothing we can really do about it but adjust.

    ReplyDelete

Money CAN Buy Happiness

You have probably heard the very common phrase, "Money Can't Buy Happiness." However, according to a study by psychologists...