Summary of The Small Business Die-Off Is Here

Looking for the article?
We have the summary! Get the key insights in just 5 minutes.

The Small Business Die-Off Is Here summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Eye Opening
  • Overview
  • Concrete Examples

Recommendation

If you imagine that the US economy will ricochet back from the pandemic, creating a “V-shaped” line on the proverbial economic recovery graph, The Atlantic’s economic policy reporter Annie Lowrey suggests you curb your optimism. The curve of economic recovery will be decidedly “U-shaped,” she says, due in large part to the loss of small businesses. Given their crucial role in fueling innovation, productivity, higher wages and lower prices, the loss of small businesses may create a cascade of negative consequences.

About the Author

Annie Lowrey covers economic policy for The Atlantic. She previously held staff writer positions at The New York Times and Slate. She is the author of Give People Money: How a Universal Basic Income Would End Poverty, Revolutionize Work, and Remake the World.

 

Summary

The United States bungled its small business loan program so far.

The United States faces a completely new challenge: keeping most of its small business solvent. The government understands, or at least has vast experience in, supporting the “economic system,” but not as it relates to small businesses. Credit card transactions reveal that approximately 30% of small businesses have closed because of the pandemic. “Transaction volume” numbers are bleak: travel agencies have lost 98% of their business; photo studios 88%; day-care centers 75% and ad agencies 60%.

Though the Donald Trump administration and Congress created a $350 billion loan plan for small businesses, and have added another $320 billion, implementation issues have been daunting. Applications swamped baffled banks. Small business owners did not understand what paperwork they had to provide or for what funds they were eligible. Four out of five applicants had no idea if they could or would receive funds.

A great deal of the money flowed to the companies that probably would survive without it. Loans worth more than $1 million – far more than most small businesses...


More on this topic

Customers who read this summary also read

Women at the Core of the Fight Against COVID-19 Crisis
9
Coronavirus Is a Disaster for Feminism
9
A Warning from Wisconsin
9
Lost Art
8
Raised in a (Very) Crowded House, Now Feeding the Hungry in a Pandemic
9
When Will We Want to Be in a Room Full of Strangers Again?
8

Related Channels

Comment on this summary