Photo/Gerd Altmann from Pixabay
At breakneck speed, the COVID-19 pandemic is accelerating decades-long economic consolidation, job loss, and inequality.
In the 1980’s, half of all retail in the United States was in smaller independent stores. By 2020, that percentage was less than one fourth. With the predicted recovery from the pandemic economy coming in the second half of 2022, we can expect that number to plummet. Currently, 18 percent of small businesses expect to never reopen. Giant corporate chains like WalMart and Target may be the only ones left.
Defining unemployment is unmistakably political, but there is one mega-statistic that is above the fray – the percentage of the labor force (defined as all people ages 20 to 64) that is employed. In 2000, that number reached a post-World War II high of 65 percent.
In January 2020, it stood at 61.2 percent; at the end of May it was 52.8 percent.
While joblessness may recover somewhat, many people who lose their jobs during recessions suffer permanently reduced income – 20 percent less on average. Companies historically learn to make do with fewer workers after downturns. Robotization and other labor-eliminating technology will accelerate, with more online shopping, warehouse robots, self-checkout, entertainment streaming, and the like.
Without jobs – well-paying jobs – fewer people will be able to buy. This will widen the gap between rich and poor. Any post-coronavirus prosperity will be accessible only to the fortunate and their children. We were already heading this way. The virus is bringing us there even faster.
(Information for this article came from washingtonpost.com and nbc.com)
