Are restaurants doomed?
Without a bailout, they won't last through the summer.. Not requiring the patrons to be tested negative, and only allowing 50% of his tables to be occupied isn't something restaurants can endure..
A bailout, however, will keep them alive, restore the broken food chain, feed the hungry people lining up at foodbanks, and keep restaurant workers off the unemployment rolls.
It's actually a brilliant idea.. That's why Trump would NEVER come up with something this ingenious.. No, it's NOT my idea.. It's Tom Colicchio's.
Side Score: 1
Side Score: 1
A number of obvious factors would make a bailout for restaurants impossible.
A couple of these factors would include the following.
1) For how long should taxpayer's money be directed towards this specific industry?
Until the end of the covid-19 crisis?
When is that going to happen?
2)Other industries, such as the airlines, private coach companies, Hoteliers, clothing manufacturers and retailers, gymnasium owners, hairdressers, dentists, real estate agents along with dozens of other trades and professions would be demanding the same degree of financial support.
Bankruptcies, liquidations, closures, soup kitchens and the ensuing increase in mental health problems are all courtesy of the Chinese communist government.
You are right to point out other industries, but I think future stimulus bills will likely continue to support restaurants as well as those, like the previous bill did.
Mass bankruptcies would generally result in those unemployed workers getting government welfare anyway, but also has other consequences:
- it is harder to ramp back up as circumstances allow
- de-incentivizes future potential business owners
- it is easier to pay businesses, than make individual decisions
- our system of unemployment (especially where they can make more than their previous paycheck) can dissuade people from going back to work even when their job does resume
- employers and employees will now have to start over finding the right fit - interviews, background checks, etc.
- some industries will have drastically reduced competition, or possibly monopolies
So, helping businesses weather the storm is likely the easiest path back to normal (though still not necessarily "easy".)
And, as you more crudely put, it is often through no fault of their own.