Small business struggles could worsen
The task faced by Connecticut leaders over the past seven months has been easy to explain but difficult to accomplish: How do you give businesses a chance to survive while also keeping people safe from a deadly pandemic? The state took another step in trying to achieve that balance this week, but it’s yet to be seen how people will respond.
Gov. Ned Lamont’s Phase 3 reopening took effect Thursday, and it allows restaurants, hair salons and other businesses to serve customers at 75 percent of their indoor capacity provided that social distancing and other health guidelines can be observed. In addition, restrictions are being lifted for crowd sizes at outdoor events and certain indoor gatherings.
The latest move comes at a time of growing distress for small businesses, with more locally owned retailers around Connecticut finding they simply aren’t able to survive the new COVID-restricted reality. Some, such as bars and entertainment venues, haven’t been able to open at all. Others have been severely limited in their capacity, leading to staffing cuts.
The result is a high unemployment rate, which while not as catastrophic as it was at the start of the pandemic still represents an economy in crisis. Especially in the service sector, jobs that disappeared simply aren’t coming back, and there is little hope for a change on the immediate horizon.
The situation is sure to worsen with the coming of cold weather. The slice of the populace that feels comfortable going out to eat is much more likely to prefer outdoor dining, where spread of the coronavirus is less likely, than eating indoors. With winter weather forcing people inside, and a shortage of patio heaters that could keep outdoor dining going for a few more months, the number of people going out to restaurants is likely to decline no matter what the restrictions are. Even after movie theaters opened, few people felt safe going to them.
The wave of business closures without a new round of federal aid is likely to be serious. But there’s little hope of action on that front until after the election, maybe even until Inauguration Day, in January. Many business owners can’t wait that long, and the result will be even more job losses that will not immediately bounce back.
At the same time, Connecticut is warily watching the numbers tick back up on coronavirus cases and hospitalizations. While not as critical as the figures from the spring, the latest statistics are an indication that we all need to be careful. Masks work, and we need to wear them. Staying out of confined spaces with large groups of people is a necessity. It’s just not clear how the economy as we know it is supposed to continue functioning in the face of such strictures.
In the absence of a new round of federal aid, the only choice is to hold on as best we can. Order takeout, if you can afford it. Shop locally for the holidays. Do what you can to keep local businesses afloat. The next few months could be exceptionally perilous for retailers.
The wave of business closures without a new round of federal aid is likely to be serious. But there’s little hope of action on that front until after the election, maybe even until Inauguration Day.