“When the number of people with new coronary pneumonia in the country exceeded 2.5 million, Florida and Texas on the 26th each withdrew measures such as opening bars and parties in the state’s economic restart plan.” The BBC reported on the 28th that the repeated epidemic has forced the suspension of economic recovery plans in many US states. The pressure of epidemic prevention has increased again and many industries have to continue to endure the decline in income. At the same time, fiscal pressure is constantly reminding the US that economic recovery still faces many difficulties.
The catering and fitness industry must be patient
“USA Today” quoted JP Morgan Chase economists’ analysis on the 28th, saying that the consumption fever in restaurants and supermarkets can reflect the speed of local epidemic spread to a certain extent. However, the American Food and Beverage Association is dissatisfied with this analysis, saying that this analysis is “irresponsible”, saying that the food and beverage industry has taken quite high protective measures and will continue to implement social isolation policies.
At present, “difficult recruitment” is plaguing the US catering industry. According to the Eater website in the United States, about 6 million restaurant operators have lost their jobs since the new pandemic epidemic hit the restaurant industry in March this year. But even if they start to resume work, they may not all be able to return to their posts. On the one hand, there are many small restaurants that currently do not have enough job opportunities to recall employees; on the other hand, those restaurants that thrive on take-out business plan to increase employees, but find that employees may not return due to health concerns, or prefer to collect at home The government’s anti-epidemic unemployment assistance is also reluctant to go to work.
Also hit by the fitness industry. In an interview with CNBC, the American LifeTime Fitness Club CEO Akaladi said that although many states have begun to restart, but as more and more people exercise at home during the epidemic, the fitness industry may experience a “mini recession.”
High unemployment rate pressure is still on
The US CNBC website said on the 27th that after entering the second half of 2020, the first test facing the US economy is the June employment report that will be released on July 3, and economists expect that following May, the number of US jobs will increase unexpectedly. After 2.5 million, this report added 3 million new jobs. However, Reuters reported that the second wave of layoffs partially offset the employment brought about by the reopening of businesses, and the labor market may take several years to recover from the new coronary pneumonia epidemic.
According to data released by the US Department of Labor, as of the week of June 20, the number of first-time jobless claims decreased by 60,000 after seasonal adjustment to 1.48 million. However, the number of people applying for unemployment benefits jumped for the first time in California. Recently, there have been a surge in confirmed cases of new crowns in California, Texas and Florida. Economists estimated that the number of applicants in the last week was 1.3 million. Reuters believes that the high unemployment rate has weakened demand and has had a ripple effect on corporate investment. In the first quarter of this year, US corporate investment experienced the largest contraction since mid-2009.
Fiscal crisis highlighted
“Washington Post” reported on the 26th, affected by the new crown epidemic, the local governments of the United States generally suffered a sharp decline in revenue; local governments in the United States do not spend as much as the federal government can ignore large deficits. Under the pressure of the epidemic, many local governments have been unable to afford basic expenses such as health and education. Recently, the multi-state local government called on the federal government to contribute 1 trillion US dollars in aid, but this proposal was opposed by President Trump and high-level Republicans.
Due to the lack of support from the US federal government, many states have started to levy new taxes, including real estate, tobacco and technology giants. The practice of Tennessee’s capital, Nashville, is particularly striking. The city raised local property taxes by about 34% at a time earlier in June. The local government said the move was to meet public education spending needs. Although the local property tax rate has been at a relatively low level throughout the United States, the policy is still being questioned by the public. Tax experts believe that it is appropriate to levy taxes on tobacco, alcohol and gaming industries under the epidemic situation. Georgia and Colorado are both planning to increase taxes on tobacco products. Colorado’s tax targets may even include e-cigarettes.
Some high-tech giants have also become taxable targets of the state government. Some lawmakers in New York State have called for taxation on Internet giants such as Amazon, Facebook, and Google. Some lawmakers have proposed new taxes on the collection and sale of consumer data. In addition, more than 100 New York State legislators issued a joint statement earlier this month, calling for taxes on high-income people.
On the one hand, the government’s income has been sharply reduced by the impact of the epidemic. On the other hand, in the long run, the maintenance of the old system of the US social system is under heavy pressure due to the aging population. Bloomberg reported on the 28th that a recent report released by the U.S. Census Bureau showed that more than one-quarter of adults in the United States have reached the traditional retirement age. Last year, the U.S. population over 65 years old reached 54 million, an increase of 34% over 2010. Faster than the working age population and children. In addition, there are nearly 13 million people over 80 in the United States and over 100,000 people over 100. Analysts believe that the aging of the US population will cause greater pressure on the federal and local government finances. At the same time, some major US social security funds are also facing a lack of income.