Boot Strap Capitalism

This is the first of a two part series. Today is a wide angle, big picture view of how the pandemic has impacted the US economy. Tomorrow will zoom in to look into demographic differences and trends.

free enterprise v socialism meme

Former labor secretary Robert Reich has exposed multiple examples of corporate welfare connected to stimulus funds bailing out large corporations instead of small businesses. Below are a variety of news articles illustrating the economic turmoil brought on by the pandemic made worse by sloppy government attempts to help:

• 53% of lower income households can’t afford to pay April bills. 
• Abigail Disney was flabbergasted at Walt Disney Co decision to furlough hundreds of thousands of low wage workers after paying millions to executives. 
• Anger mounting as corporations tap PPP funds.
• Angry man suggested mortgage and rent payments be deferred until crisis ends.
• Chase and other banks shuffled PPP loan applications.
• Ex-CEO of Starbucks urged government to significantly increase PPP loans.
• Forbes tracked long list of corporate layoffs.
• Government Accounting Office (GAO) launching CARE fund investigations.
• Harvard received $8.7 million in stimulus funds for student financial aid despite having the largest university endowment in the world, valued at $40 billion before the stock market abruptly crashed last month. Moody reported Harvard plans to sell $1.1 billion in bonds. Harvard also announced salary and hiring freezes, discretionary spending reductions, leadership salary cuts, and the potential deferral of capital projects.
• Marriott, the largest hotel chain in the world, repurchased $2.3 billion of its own stock last year while earning nearly $4 billion in profits and doling out $160 million in quarterly dividends, then dismissed thousands of workers in March.
• OPINION: CEOs are a moral hazard, not the unemployed.
• PPP isn’t working for small businesses.
• Proposed Senate Paycheck Security Act would guarantee pay for employees furloughed or laid off. 
• Publicly traded companies received $365 million in PPP loans; must return money.  
• Restaurants and hotel chains received PPP loans meant for small businesses.
• SBA PPP summary report is online but details are not readily available.
• Sea World execs received $6.8 million in stock options during crisis.  
• Shake Shack and Ruth's Chris returning PPP funds. 
• Small businesses sue big banks over PPP loan favoritism.
• Some employers are giving laid off workers bad severance and worse communication.
• State unemployment systems unable to efficiently process unprecedented volume of applications.
• Why are corporate chains receiving PPP loans?
• Winston Salem small businesses question why they didn’t receive more PPP aid.

In the spirit of spreading happy, positive, and/or silly vibes:

• Chris Hemsworth told Jimmy Kimmel about finding a python in his motorcycle helmet.
• Jersey4Jersey concert featured Bruce Springsteen, Tony Bennett, BonJovi, and Halsey.
• John St John sang an Irish ballad about coronavirus.

Daily pandemic update:  

The number of US citizens who filed for first-time unemployment benefits in the five weeks since the start of coronavirus-related lock downs reached a record 26 million. The WHO meanwhile said that up to half of all coronavirus deaths across Europe have been in nursing homes, calling it an "unimaginable tragedy". Aljazeera.com timeline

24 Apr 2020	Cases		Deaths		Recovered
9:06 GMT*	Yesterday	Today	Yesterday	Today	Yesterday	Today
World	2,653,808	2,734,102	185,059	191,189	727,844	751,408
US	849,092	886,709	47,681	50,243	84,050	85,922
NY	263,754	271,162	20,248	20,982	29,831	30,817
CT	22,469	23,100	1,544	1,639	63	63
NC	7,547	7,822	267	281	1,302	1,302

*Documenting time of day because real time data updates continuously.
Tracking specific states:  NY is US epicenter, son Reid lives in CT, and I live in NC. 
https://www.worldometers.info/coronavirus/     https://www.coronainusa.com/  

A moment of silence for those we’ve lost to coronavirus, including the first 100 in the US.

In the news:  

• 4.4 million more Americans filed for unemployment; 26 million total -- 20% of the workforce.
• 6 killed as severe storms hit OK and TX.
• Business groups plead for changes to the Paycheck Protection Program.
• Despite GA Gov Kemp intentions, movie theaters are not likely to open soon.
• DHS official William Bryan: "Our most striking observation to date is the powerful effect solar light appears to have on killing the virus on both surfaces & in the air. We see a similar effect with both temperature & humidity."
• House passed $484 billion phase 3.5 relief pkg including $310 billion for additional PPP loans. Dems are working on next stimulus dubbed CARES 2; Trump has signaled support though McConnell wants moratorium on spending. 
• Melania Trump posted a #BeBest word search for children.
• National spelling bee canceled for first time since WWII.
• Psychopath Records and the Insane Clown Posse canceled their annual music festival gathering, not wanting to endanger a single Juggalo life.
• Ramadan Mubarak trended as Muslims shared posts about the holy month of fasting.
• Reuters: former labradoodle breeder tapped to lead U.S. pandemic task force.
• Tide Pods, Clorox and Lysol trended after Trump discussed the possibility of injecting disinfectants into patients. He also asked Dr. Birx about UV light and heat as a cure. When reporter Phillip Rucker questioned Trump about his ideas, Trump responded “I’m the president and you’re fake news.”  
• Trump administration detailed plan to pay uninsured’s COVID-19 expenses.
• Trump is reportedly frustrated being stuck in White House. 

Trump medical advice meme

NC Gov Cooper announced stay at home order would continue through May 8, followed by a 3 phase plan to reopen.

A detailed look at where NC stands on testing, tracing and trends can be found in a presentation. The metrics NC is considering align with the White House guidance for Opening Up America Again. In order to begin lifting restrictions, NC needs to see progress in key metrics:

• Sustained Leveling or Decreased Trajectory in COVID-Like Illness (CLI) Surveillance Over 14 Days. Currently, NC’s syndromic surveillance trend for COVID-like illness is decreasing over the last 14 days.  

• Sustained Leveling or Decreased Trajectory of Lab-Confirmed Cases Over 14 Days. Currently, NC’s trajectory of lab-confirmed cases over the last 14 days cases is still increasing, although at a slower rate.  

• Sustained Leveling or Decreased Trajectory in Percent of Tests Returning Positive Over 14 Days. Currently, NC’s trajectory in percent of tests returning positive over the last 14 days is increasing at a slow rate.   

• Sustained Leveling or Decreased Trajectory in Hospitalizations Over 14 Days. Currently, NC’s trajectory of hospitalizations over the last 14 days is largely level with a slight trend upward.   

In addition to these metrics, the state will continue building capacity to be able to adequately respond to an increase in virus spread. These include:

• Increase in Laboratory Testing. Currently, NC is testing approximately 2,500 to 3,000 people per day and is working to increase to at least 5,000 to 7,000 per day.   

• Increase in Tracing Capability. Currently, NC has approximately 250 people doing contact tracing across its local health departments and is working to double this workforce to 500.    

• Availability of Personal Protective Equipment. The state is working to ensure there are adequate supplies to fulfill requests for critical PPE for at least 30 days. This includes face shields, gloves, gowns, N95 masks, and surgical and procedural masks. Currently the state has less than 30 days supply of gowns and N95 masks. Availability of PPE is calculated based on the average number of requests for the last 14 days compared to the supply that the state has on hand.   

Gov Cooper also shared information about how NC can gradually re-open over three phases to prevent hot spots of viral spread while also beginning to bring our economy back. These phases are based on the best information available now, but could be altered as new information emerges. 

PHASE 1: 

• Stay-at-home order remains in place, people can leave home for commercial activity
• Those retailers and services will need to implement social distancing, cleaning and other protocols
• Gatherings are still limited to no more than 10 people
• Parks can open subject to gathering limits
• Face coverings are recommended in public
• Restrictions remain in place for nursing homes and other congregate living settings
• Encouraging continued teleworking

PHASE 2 (at least 2-3 weeks after Phase 1):

• Lift the stay-at-home order with strong encouragement for vulnerable populations to continue staying at home
• Allow limited opening of restaurants, bars and other businesses that can follow strict safety protocols and reduced capacity
• Allow gathering at houses of worship and entertainment venues at reduced capacity
• Increase the number of people allowed at gatherings
• Open public playgrounds
• Continue rigorous restrictions on nursing homes

PHASE 3 (at least 4-6 weeks after Phase 2): 

• Ease restrictions for vulnerable populations while encouraging social distancing
• Allow increased capacity at restaurants, bars, other businesses, churches, and entertainment venues
• Further increase the number of people allowed at gatherings
• Continue rigorous restrictions on nursing homes 

NC state senator Jeff Jackson is another reputable source for updates.

Following Kenny Beck’s lead to share a few signs of hope:

• Patent pending for next gen custom face mask developed by UConn engineers.
• Rachael Ray is donating $4 million for coronavirus relief through her charities.
• Samuel Adams offering $1,000 grants to unemployed bar and restaurant staff.
• Sesame Street comforts children and parents with special coronavirus episode.
• Surry Early College students connect through Minecraft game.

In my personal life…

Wednesday I enjoyed an extended Zoom with son Reid while Greg chatted with Aunt Debbie via phone. It was a pretty good day overall.

Earlier in the week Greg and I had gotten on each other’s nerves a wee bit nitpicking about the difference between late May and early June… as in when might some restrictions be lifted… by the last day of May (Greg), or the first day of June (me). It was a nothing burger argument compared to the disagreement we had last week about crackers. Yes, crackers. Anyway, I half jokingly told him I was looking forward to Thursday when he was scheduled to go back to work so I could enjoy having the house to myself for a few hours.  

Thursday morning Greg quit his job. No, not out of spite. His frustration had been simmering for a while. Long story short: he is fine, we are fine. After taking a few days off he will figure out next steps professionally. He is a smart man with transferable skills so we are confident he will work again soon enough.