We have consistently called for everyone to support the small business community and open the economy all the way. As we have noted on many occasions, the implications of leaving the economy closed or limited for an extended period of time are quite significant and must not be ignored if we are to thrive as a whole. While we are glad we are not the only ones saying this, we are also regretful that we are correct; according to the President and CEO of the Queens Chamber of Commerce, the results of extended shutdowns will hit small businesses very hard, especially the restaurant industry, and it is estimated that up to 50% of all restaurants in New York City will permanently close their doors due to these new and/or extended shutdowns (Caplan, 2020). Unfortunately, rather than heeding the warnings of what is happening to the NYC economy, the state of Wisconsin continues to push limitations. As a matter of fact, Wisconsin will limit bars, restaurants, and other indoor businesses to a max capacity of 25% (Sandler, 2020).

We cannot starve small business owners indefinitely before they suffer beyond repair – we cannot continue to limit a business’s capacity and expect there to be no economic repercussions. By the way we can actually see the extent of the damage, it will be too late to respond as the window of opportunity will have closed. Small businesses continue to close each day because of the economic limitations but what we must remember is this: with each business that closes, real people lose jobs, real people stop spending, real businesses experience revenue declines, and real economic shrinkage occurs. It takes time to recovery from such a situation and while it took less than a year to do the damage, it will take far more than a year to recover from this economic damage.

We must open the economy to 100% and we must do so now. Yes, we can and should all be careful, but if we continue to stress the small business community, we endanger the whole economy overall. We can operate an economy safely while also running at 100% capacity but if we continue to limit capacity, we limit so much more than mere capacity; we limit economic growth, wage growth, and employment growth and, unfortunately, leaving capacity limitations in place actually encourages and fosters the opposite: economic decline.

Please continue to our vision to help support small businesses nationwide – every Facebook like, every membership, and every sponsorship helps us advocate for the small business community. They have continuously had our backs in the hardest of times, and it is now our turn to have their backs.

John M. Beaman
President of The McGraw Council Membership, Inc.
10/19/20

 

 

References

Caplan, J. (2020). Forget what you’ve heard – NYC businesses will bounce back. Here’s why, and how to boost the resilience of your own business. Forbes. Forbes.com. Retrieved from https://www.forbes.com/sites/johncaplan/2020/10/13/forget-what-youve-heard-nyc-businesses-will-bounce-back-heres-why-and-how-to-boost-the-resilience-of-your-own-business/#34f4af665ac7

Sandler, R. (2020). Wisconsin judge reimposes order limiting restaurant, bar capacity amid covid spike. Forbes. Forbes.com. Retrieved from https://www.forbes.com/sites/rachelsandler/2020/10/19/wisconsin-judge-reimposes-order-limiting-restaurant-bar-capacity-amid-covid-spike/#685b16f6744d