The next phase of the coronavirus pandemic for the United States will mean the collapse of the “ghost capital.”
This was stated by Professor of Economics at George Mason University Tyler Cowan in a publication for the Bloomberg agency.
Referring to the forecasts, the expert noted that within a month approximately 50% of all small US enterprises will be without money, most of them will close. He cited the catering industry as an example. So, restaurants now can only prepare takeaway food. If they are allowed to open up, then the rules of social distance will still not allow them to assemble full halls.
Cowen compared such establishments with “ghosts” that exist, but no longer have a special future, because the vaccine from COVID-19 is expected only next year, and not all will last as long. The same fate awaits shopping centers and related business. Even American television is desperate to adapt to the new shortage of content, although in other countries, as the professor notes, there is no media shortage.
The expert is sure that the power of economy No. 1 is running out, because while it is moving by inertia. However, familiar American capitalism will soon change. The place of closing enterprises will not be occupied by several new ones. Those who will create their own business will encounter difficulties in finding partners, qualified assistants and staff.
“The American economy lives on the legacy of the past, and it cannot go on forever,” Cowen emphasizes. – Many Americans have recently demanded more freedom, and these desires are understandable. But when they quarantine, they may be disappointed to find that, first of all, people will get the freedom to leave the business. ”