Three weeks ago I wasn’t taking the coronavirus very seriously.
I was washing my hands more than usual, but in terms of the virus impacting my everyday life, I didn’t think much about it. A few business leaders I talked to felt the same way. We even shook hands together.
Then, the week of March 9th came and things changed. Heck, the nation changed. One by one major sporting events and leagues were cancelled and states began taking unprecedented steps to slow the spread of the virus, including closing schools and other public gathering places like restaurants, bars, gyms and casinos.
Soon, Connecticut followed suit. Hartford Business Journal adopted a work-from-home policy and nearly every employee complied. In fact, as I was writing this column I was the only person in the office. Downtown Hartford feels like a ghost town.
Hartford didn’t need this, nor did the state or region. There have been lots of opinions about what impact coronavirus will ultimately have on the economy. Truthfully, even the smartest business and government leaders and economists don’t know, but I think it’s safe to say we are headed into a major recession. In fact, we are likely in one right now.
How long and severe it will be is anyone’s guess, but I’ve personally never seen so much economic disruption in such a short period of time. Within a few days, starting March 13, Connecticut saw more than 30,000 residents file for first-time unemployment benefits.
That’s an ominous sign.
There have been projections three millions U.S. jobs could be lost by summer and the unemployment rate (currently 3.5%) could double in a year.
Connecticut needs a strong response from the federal government to help both businesses and individuals. It’s also important for state lawmakers to pass their own stimulus program.
Some measures have already been taken on the federal and state levels.
Ironically, I was very critical of former Gov. Dannel P. Malloy’s policies of giving businesses loans and grants to encourage job creation and preservation, but I think we will need to revert back to that approach, at least in the short term.
Connecticut’s economy was lagging before coronavirus hit (we lost 3,300 jobs in 2019), and it will need a major jumpstart in COVID-19’s wake.
Local banks must also step up and work with borrowers.
Meantime, business leaders and owners must show patience in the weeks and months ahead with various constituencies, including workers, customers, suppliers, etc. These are likely to be tough times for everyone.
Our publisher Joe Zwiebel has been using the tagline, “We are all in this together.” I think it’s appropriate given the major challenges companies of all stripes are facing, whether it’s a loss of customers or workers.
If this column seemed a bit rambling and unfocused you’re right. Trying to explain the unexplainable is an arduous task and I’ve been leading a news team that’s put in long hours in recent weeks to give our readers as much information and analysis on the coronavirus’ impact as possible.
If anything, this episode has shown the importance of reliable, local news coverage.
In the meantime, all we can do for now is soldier on and roll with the punches.
Better days are ahead, if your business can get there.
