{"id":2910,"date":"2020-03-21T00:32:04","date_gmt":"2020-03-20T21:32:04","guid":{"rendered":"http:\/\/yemeniamerican.com\/en\/?p=2910"},"modified":"2020-03-21T00:32:04","modified_gmt":"2020-03-20T21:32:04","slug":"how-coronavirus-will-affect-detroits-economy","status":"publish","type":"post","link":"https:\/\/yemeniamerican.com\/en\/how-coronavirus-will-affect-detroits-economy\/","title":{"rendered":"How Coronavirus will affect Detroit\u2019s Economy"},"content":{"rendered":"

By Simon Albaugh -YAN – Hamtramck<\/strong><\/p>\n

\"\"\"\"In the Meijer Supermarket on Eight Mile Rd, lines stretched halfway down the aisles as people anxiously stood with carts full of dry goods, nonperishable foods and bottled water. Many shelves, like rice and toilet paper, were empty after customers went through the entire stock of the store\u2019s supply. It was after two days of the intense shopping that the store started running empty on some of these goods.<\/p>\n

Meijer\u2019s corporate chain of massive supermarket stores will easily be able to resupply these items in their next shipment. But for many of the smaller grocery stores, the immediate future is an uncertain one.
\nBilal Aldues owns the Holbrook Market in Hamtramck. After the intense shopping days in the middle of last week, many of the items that people depend on have sold out. \u201cIf we can\u2019t find the products easily and we\u2019re not able to resupply, I don\u2019t know how long we\u2019ll be able to stay open,\u201d Aldues said.
\nFor the past few days, he\u2019s been calling supplier after supplier, asking for the prices of bread, flour, bottled water and cleaning supplies. Some, he\u2019s been told, are not available anywhere in the region and some are being heavily rationed among buyers.
\nAldues has been told that sometime in the next few weeks, grocery stores may find an easier time as people become accustomed to the new restrictions put in place. However, other businesses may not have the same prospects for reprieve.
\nBehind the bar at Trixie\u2019s, Ian Perrotta has worked making drinks at the bar he owned while he attending Law School at Wayne State University. He passed the Bar Exam and, in January was admitted to the Michigan State Bar. But now that the Coronavirus has closed down every bar and restaurant in Michigan, he may have to walk away from Trixie\u2019s.
\n\u201cFor the immediate future, we plan to operate on a carry-out basis from 4 to 8 p.m.,\u201d Perrotta said. \u201cAnd we\u2019re looking at the logistics of Home Delivery.\u201d
\nBars across Michigan were closed on Monday, Mar. 16 as Governor Gretchen Whitmer closed any business that attracts large crowds in closed-quarters. Concert tours, and other major entertainment events were also cancelled.
\nBut the question remains on what all this means for an economic outlook in the United States. And for those questions, most economic forecasters would\u2019ve never been able to guess the effect of Coronavirus on the financial health of families.
\nIn Michigan State University\u2019s Center for Local Government Finance and Policy, Economic forecasters for Detroit are scrambling to revise their models being used to predict the financial future of the city.
\n\u201cWe don\u2019t really, as economic professionals, think we have a model that is designed around such kind of social catastrophes,\u201d said Professor Steven Miller of MSU.
\nAccording to models developed in MSU\u2019s Center for Local Government, the economy was already slowing down. Professor Miller explains that commodities like houses were at an inflated price and the cycle of the economy was heading to a slower year.
\nBut the model-breaking event, Coronavirus outbreaks, have indicated to Professor Miller that we will go into a recession.
\nWe did not have a vibrant economy,\u201d Professor Miller said. \u201cWe had a stable economy. But all the indicators pointed to slowing in 2020. And with this on top of it, definitely we\u2019re in a recession.\u201d
\nAs of this week, the Big Three Auto manufacturers have just announced that they will be suspending production in Southeast Michigan. For the foreseeable future, some of the largest employers in the region will be laying off thousands of workers in what might be the most uncertain time of this century.
\nAccording to reports on the factory closures, workers will be receiving combined unemployment benefits that should roughly be the same as regular pay. However, if the crisis continues, it\u2019s uncertain how long auto manufacturers will be able to contribute to the pay of its idled employees.
\nPresident Donald Trump has been injecting stimulus funding into the US Stock Market, as well as lowering short-term interest rates to zero in hopes of instilling confidence in the stock market.
\n\u201cThe stock market is not the economy,\u201d Professor Miller said. \u201cThe stock market is basically the wealth of those that have invested in the stock market. So it\u2019s not like a dip in the stock market has an immediate change in how people are going to spend because from their wealth. But it does have an impact on how people perceive their financial future.\u201d
\nThat crisis of confidence around Southeast Michigan may result in other Detroit industries, like retail and finance, to take a dip. However, the limited spending power during the time of the virus will more likely change what industries are more marketable than others.
\nSo for business owners like Bilal and Ian, the future is uncertain. But as Professor Miller explains: \u201cif we continue to look at the long term, we have a savings goal, and we continue to aim for that savings goal and just stay on that long-term track, you\u2019ll eventually reach those goals. It just might take longer.\u201d<\/p>\n

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