COVID Economy

[jesmu84]

Walmart made $129B in profit last year, but at least 14,500 of their employees receive SNAP benefits.

McDonald's made $11B in profit, but at least 8,780 employees receive SNAP benefits.


https://twitter.com/washpostbiz/status/1329185396891201537

So taxpayers are subsidizing private corporation employees with resulting profits going to a small segment of the upper crust of society.

Something sure feels backwards here...

[pbiflyer]

Who says COVID-19 is bad for the economy?

From the AP ...

The Texas border county of El Paso, where more than 300 people have died from COVID-19 since October, is advertising jobs for morgue workers capable of lifting bodies weighing 175 pounds or more. Officials are offering more than $27 an hour for work described as not only physically arduous but “emotionally taxing as well.”

The county had already begun paying jail inmates $2 an hour to help move corpses and has ordered at least 10 refrigerated trucks as morgues run out of room.

Yah capitalism!

[Warriors4ever]

Several years ago my church sponsored a talk about the social cost of low prices. Walmart was mentioned then as a huge employer with large chunks of their employees on various government programs, due to the wages they pay.
Even now I see many people who swear on the internet that they want to buy American, only to complain that the prices are higher.

[Skatastrophy]

Back to the COVID economy

https://www.bloomberg.com/news/articles/2020-11-22/boatloads-of-cargo-off-los-angeles-grind-gears-of-world-economy?srnd=premium

Ports on the West Coast are overfull and ships are unable to offload.

Labor shortages in receiving and trucking are a bottleneck for getting imports into the country. This happened during the first shutdown too, impacting most manufacturing companies I am partnered with. It only takes one cog to be stuck on a ship to bring a whole supply chain to a grinding halt. It only takes one trucking company to have a covid outbreak to bring a region to an abrupt halt.

> “We expect many of the supply-chain congestion issues we’ve seen throughout the pandemic to continue through Chinese New Year” in February, Manders said.

Without another round of stimulus, there will be severe pain in small to medium manufacturing & logistics companies this winter. Large & ultra-large companies will likely be fine since the Fed is continuing to buy newly issued debt at a very high rate.

[MU82]

In an attempt to make things as horrible as possible for Biden, Trump and his team are playing games with remaining stimulus funds, with the Fed's ability to manage difficult times, etc.

The anti-American vindictiveness never ends.

[GooooMarquette]

In an attempt to make things as horrible as possible for Biden, Trump and his team are playing games with remaining stimulus funds, with the Fed's ability to manage difficult times, etc.

The anti-American vindictiveness never ends.

The really sad part about this is that it affects those who need it the most...and that includes both Biden and Trump supporters.

[MU82]

The really sad part about this is that it affects those who need it the most...and that includes both Biden and Trump supporters.

Of course. It’s despicable and indefensible. Like a huge percentage of the emperor’s policies and statements.

[JWags85]

Back to the COVID economy

https://www.bloomberg.com/news/articles/2020-11-22/boatloads-of-cargo-off-los-angeles-grind-gears-of-world-economy?srnd=premium

Ports on the West Coast are overfull and ships are unable to offload.

Labor shortages in receiving and trucking are a bottleneck for getting imports into the country. This happened during the first shutdown too, impacting most manufacturing companies I am partnered with. It only takes one cog to be stuck on a ship to bring a whole supply chain to a grinding halt. It only takes one trucking company to have a covid outbreak to bring a region to an abrupt halt.

> “We expect many of the supply-chain congestion issues we’ve seen throughout the pandemic to continue through Chinese New Year” in February, Manders said.

Without another round of stimulus, there will be severe pain in small to medium manufacturing & logistics companies this winter. Large & ultra-large companies will likely be fine since the Fed is continuing to buy newly issued debt at a very high rate.

Though not in shipping, I’ve been seeing it in the diamond/Jewelery industry the last 6-8 weeks. After a big downswing, demand has picked back up. From a pure demand perspective, people forecasted a slightly down, but fairly normal holiday season.  However, COVID is still very much an issue in India where the majority of diamonds are being cut and lots of jewelry is made.  Also, even domestically, reductions in labor cause of COVID and restrictions create more backlog. So now orders that would take 1-2 weeks to normally fill, are taking 6 weeks or more. It’s a DISASTER.

You survive a downswing, but then you can’t execute/fulfill/finish sales cause the backend is still a mess so you’re still dead in the water

[GooooMarquette]

Though not in shipping, I’ve been seeing it in the diamond/Jewelery industry the last 6-8 weeks. After a big downswing, demand has picked back up. From a pure demand perspective, people forecasted a slightly down, but fairly normal holiday season.  However, COVID is still very much an issue in India where the majority of diamonds are being cut and lots of jewelry is made.  Also, even domestically, reductions in labor cause of COVID and restrictions create more backlog. So now orders that would take 1-2 weeks to normally fill, are taking 6 weeks or more. It’s a DISASTER.

You survive a downswing, but then you can’t execute/fulfill/finish sales cause the backend is still a mess so you’re still dead in the water

Cut, Color, Clarity, Carat...and Covid?

[Skatastrophy]

Though not in shipping, I’ve been seeing it in the diamond/Jewelery industry the last 6-8 weeks. After a big downswing, demand has picked back up. From a pure demand perspective, people forecasted a slightly down, but fairly normal holiday season.  However, COVID is still very much an issue in India where the majority of diamonds are being cut and lots of jewelry is made.  Also, even domestically, reductions in labor cause of COVID and restrictions create more backlog. So now orders that would take 1-2 weeks to normally fill, are taking 6 weeks or more. It’s a DISASTER.

You survive a downswing, but then you can’t execute/fulfill/finish sales cause the backend is still a mess so you’re still dead in the water

That resonates with my father's feeling. He's an overwhelmed goldsmith right now. Customers are getting new, or updated rings & jewelry at a crazy clip. Jewelers aren't as in tune to the price of gold as he is, nor are they as in tune to the sourcing of specific qualities of diamonds.

Similar to the wine industry. While bars & restaurants are getting smoked, retail wine has really picked up. Big challenge, though: France et al decided not to ship much wine to the US this year because we, as a nation, are a complete disaster when it comes to this pandemic. This would be THE year for domestic wine producers to break the budget on marketing and show out against international producers, but I think it's hard for any business to decide to spend in a climate like this.

No matter how your business is doing, it's a defensible position to cut staff and weather this storm, even if you see an opportunity.

[tower912]

I suspect some california vineyards are in a world of hurt.

[Uncle Rico]

I suspect some california vineyards are in a world of hurt.

The fires were devastating

[jesmu84]

https://youtu.be/nBFei_-hG9A

[MU82]

As Trump does nothing but golf and make false claims about election fraud, Mnuchin threatens to claw back billions of dollars that were supposed to help Americans, and McConnell curls up in the fetal position, governors and other state officials of both parties desperately try to give their hurting residents some economic relief.

From the AP ...

SANTA FE, N.M. Faulting inaction in Washington, governors and state lawmakers are racing to get pandemic relief to small-business owners, the unemployed, renters and others whose livelihoods have been upended by the widening coronavirus outbreak.

In some cases, elected officials are spending the last of a federal relief package passed in the spring as an end-of-year deadline approaches and the fall COVID-19 surge threatens their economies anew. Democrats have been the most vocal in criticizing President Donald Trump and the GOP-controlled Senate for failing to act, but many Republican lawmakers are also sounding the alarm.

Underscoring the need for urgency, the number of new COVID-19 cases reported in the United States reached 205,557 on Friday, according to data from Johns Hopkins University – the first time its daily figure topped the 200,000 mark. Its previous daily high was 196,000 on Nov. 20.

The total number of cases reported in the U.S., since the first one in January, has topped 13 million.

The Democratic governors of Colorado and New Mexico convened special legislative sessions in the closing days of November to address the virus-related emergency. Earlier this week, the New Mexico Legislature passed a bipartisan relief bill that will deliver a one-time $1,200 check to all unemployed workers and give up to $50,000 to certain businesses.

Gov. Michelle Lujan Grisham said the state took action to help residents “who have real issues about keeping food on their table, a roof over their head.”

“While the United States of America is on fire, the Trump administration has left states to fight this virus on their own,” she said, noting state efforts alone simply are not enough. “It is clear no help is coming – not from this president, not from this administration. As we have done every day this year, New Mexico will step up.”

In Colorado, a special session scheduled for Monday will consider roughly $300 million in relief to businesses, restaurants and bars, child-care providers, landlords, tenants, public schools and others.

“Even as cases have exploded across the country, Congress and the president have not yet passed much-needed relief for people,” Colorado Gov. Jared Polis said in announcing the session. “Here in Colorado, we want to do the best with what we have to take care of our own.”

In New Jersey and Washington state, Republicans who are a minority in both legislatures were the ones pushing for special sessions. They want to direct more money to struggling small-business owners.

Republican lawmakers in Wisconsin, who control both houses of the Legislature, are considering whether to return in December to address effects of the latest coronavirus wave after Democratic Gov. Tony Evers put forward a $500 million COVID-19 relief bill earlier this week. Minnesota Gov. Tim Walz, a Democrat, plans to convene lawmakers in December to contend with the virus, partially at Republicans’ urging.

“Senate Republicans are committed to recovering our economy that has been harmed by broad and prolonged shutdowns,” Minnesota Senate Majority Leader Paul Gazelka said in a statement. “We will work with anyone to find solutions.”

State government leaders want Trump and Congress to extend the Dec. 30 deadline for spending virus relief money already allocated under the CARES Act, which was approved in March, and to provide more federal funding to deal with the consequences of the latest surge.

“It’s just heartbreaking what they’re allowing to happen with no federal government intervention,” said Washington state House Speaker Laurie Jinkins, a Democrat.

In making his decision to call the Minnesota Legislature into special session, Walz cited “a sense of urgency” around doing something on the state level due to the lack of a federal response.

The Minnesota Council of Nonprofits reported that more than half of the state’s charitable organizations received forgivable loans through the CARES Act’s Paycheck Protection Program this year, while another $12 million from the CARES Act is going to organizations that provide food to the needy. But all that will be spent – or lost – by the end of December without congressional action.

“I would reiterate to our federal partners – to the outgoing administration and to the incoming Biden administration – please work together, please find a compromise in there, please. If you have to, move a package now with the idea that you will come back and move one later,” Walz said. “COVID is not going to end at the end of the month. We are in an unrelenting spike.”

In Ohio, where Republicans control every branch of government, Gov. Mike DeWine and legislative leaders pushed a $420 million pandemic spending package through a special bipartisan panel late last month. Funded through the CARES Act, it offered grants to small businesses, bars and restaurants, low-income renters, arts groups, and colleges and universities.

Pennsylvania House Majority Leader Kerry Benninghoff, a Republican, gives credit to the federal government for the billions in aid previously sent out, but he said small businesses and people who have lost work need more federal assistance.

“The election’s over,” Benninghoff said. “This is not a time for finger-pointing.”

In neighboring New Jersey, the partisan divide over $4 billion in COVID-19 borrowing backed by the Democratic governor and Legislature prompted a court challenge by minority Republicans. The state’s high court sided with Gov. Phil Murphy’s administration, citing the unprecedented nature of the outbreak.

Even so, Murphy has regularly pleaded with Congress for more aid.

“It’s shameful that they have not acted in Congress, especially (Senate Majority Leader Mitch) McConnell and the Republican Senate, to throw a lifeline to small businesses,” he said.

Republicans have proposed a $300 million aid package to small businesses and nonprofits, but the legislation is stalled. GOP lawmakers told the governor if he does not call a special session to address the need, many businesses and charities “might not survive the winter.”

Lawmakers in one state, Illinois, threw up their hands and went home despite an unaddressed $3.9 billion budget deficit. They cited the health threat posed by the virus and hope for help from the nation’s capital.

“If the federal government doesn’t stand up and step in, we’re in a very bad situation – for our schools, colleges and universities, health care programs, child care, senior services,” House Majority Leader Greg Harris, a Democrat, said. “This isn’t like all the blue states are hurting and all the red states are humming along. Everybody’s in bad shape.”

[GooooMarquette]

The continued inaction by Trump and McConnell is a national disgrace. Americans (including many who voted for Trump) are suffering, yet they do nothing to ease the pain. This is a nationwide crisis that calls for nationwide action - punting it to the states is sheer cowardice.

[MU82]

The continued inaction by Trump and McConnell is a national disgrace. Americans (including many who voted for Trump) are suffering, yet they do nothing to ease the pain. This is a nationwide crisis that calls for nationwide action - punting it to the states is sheer cowardice.

Yep, and not just "many" who voted for Trump but tens of millions who voted for him. He simply does not care.

[TSmith34, Inc.]

The continued inaction by Trump and McConnell is a national disgrace. Americans (including many who voted for Trump) are suffering, yet they do nothing to ease the pain. This is a nationwide crisis that calls for nationwide action - punting it to the states is sheer cowardice.

As usual, they've said the quiet parts out loud. Just as they attempted to sabotage Obama during the Great Recession, they've been clear they are going to do the same thing to Biden. And, after running up a $7T deficit under Trump, they've already said they are suddenly bery, very worried about the deficit. And the mainstream media will dutifully report about their "concerns" as if they are legitimate.

[Jockey]

When states start doing their budgets for next year, we are going to see the real damage to the economy. Ain’t gonna be pretty.

[GooooMarquette]

McConnell refuses to consider a Covid relief package that was crafted by a bipartisan group of Senators and Congresspeople.

https://www.cnbc.com/2020/12/01/coronavirus-stimulus-update-senators-to-unveil-relief-bill.html

He just doesn't give a rat's a$$ how much people are suffering.

[The Hippie Satan of Hyperbole]

McConnell refuses to consider a Covid relief package that was crafted by a bipartisan group of Senators and Congresspeople.

https://www.cnbc.com/2020/12/01/coronavirus-stimulus-update-senators-to-unveil-relief-bill.html

He just doesn't give a rat's a$$ how much people are suffering.

Pelosi didn't agree to consider it either.

[GooooMarquette]

Pelosi didn't agree to consider it either.

She has already tried, and the House actually passed a bill this summer. But she realizes it would be futile to do anything when McConnell has made it clear he won't act.

What would you propose she do? Pass yet another bill, just to watch Mitch sit on his hands once again? My sense is that, if Mitch agreed to consider it, Nancy would hold a vote in a New York minute. Do you believe otherwise?

[The Hippie Satan of Hyperbole]

She has already tried, and the House actually passed a bill this summer. But she realizes it would be futile to do anything when McConnell has made it clear he won't act.

What would you propose she do? Pass yet another bill, just to watch Mitch sit on his hands once again? My sense is that, if Mitch agreed to consider it, Nancy would hold a vote in a New York minute. Do you believe otherwise?

I have no idea.

[jesmu84]

Mcconnell only wants liability restrictions.

Pelosi only wants no liability restrictions.

They both want money to the elites/corporations.

Neither want primary money for individuals.

Sad.

[GooooMarquette]

Mcconnell only wants liability restrictions.

Pelosi only wants no liability restrictions.

They both want money to the elites/corporations.

Neither want primary money for individuals.

Sad.

My understanding is that the Heroes Act called for an additional $1200 payment per person, protection of healthcare benefits, payroll protection to keep more people employed, and an additional $600/week unemployment for those who don’t have work.

Is that not true?

[MU82]

Mcconnell only wants liability restrictions.

Pelosi only wants no liability restrictions.

They both want money to the elites/corporations.

Neither want primary money for individuals.

Sad.

I do not believe all of that you just said is true at all.