{"id":28616,"date":"2020-09-17T15:36:08","date_gmt":"2020-09-17T19:36:08","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=28616"},"modified":"2020-09-17T15:36:08","modified_gmt":"2020-09-17T19:36:08","slug":"this-is-very-bad-news","status":"publish","type":"post","link":"https:\/\/stateofthenation.co\/?p=28616","title":{"rendered":"This is very BAD news!"},"content":{"rendered":"

Yelp Reveals 60% Of Business Closures Are Now Permanent<\/h1>\n

ZeroHedge.com<\/p>\n

The virus pandemic shock is generating deep economic scarring, the likes of which many have never seen before.\u00a0The virus-induced downturn has led the economy into a\u00a0“liquidity trap,” in which interest rates will likely reside\u00a0on the\u00a0zero lower bound until 2023,<\/a>\u00a0and\u00a0monetary policy could have trouble\u00a0stimulating the real economy besides\u00a0artificially inflating asset prices.\u00a0As Washington pumps\u00a0fiscal injection after\u00a0fiscal injection into the real economy, creating unstable\u00a0artificial growth, the latest lapse of\u00a0fiscal support, now 46 days, has sent the economy into another\u00a0slump<\/a>.<\/p>\n

For more color on the deep economic scarring,\u00a0not just a deterioration in the labor market, we turn our attention to a\u00a0Yelp<\/a>\u00a0report published Wednesday\u00a0that revealed as of Aug. 31,\u00a0163,735 businesses have closed on the platform, a 23% increase since mid-July.<\/p>\n

Yelp pointed out an increase\u00a0of permanent business closures over the past six months, now reaching\u00a097,966, or about 60% of closed businesses will never reopen their doors again.<\/p>\n

“As of August 31, 163,735 total U.S. businesses on Yelp have closed since the beginning of the pandemic (observed as March 1), a 23% increase since July 10. In the wake of COVID-19 cases increasing and local restrictions continuing to change in many states we\u2019re seeing both permanent and temporary closures rise across the nation, with 60% of those closed businesses not reopening (97,966 permanently closed).”<\/p><\/blockquote>\n

“Overall, Yelp’s data shows that business closures have continued to rise with a 34% increase in permanent closures since\u00a0our last report in mid-July<\/a>,” Justin Norman, Yelp’s vice president of data science, told\u00a0CNBC<\/a>.<\/p>\n

\"\"<\/picture><\/a><\/p>\n

Yelp notes\u00a0restaurants, shopping and retail, and beauty and\u00a0spas have been damaged the most with temporary and\u00a0permanent closures since\u00a0March\u00a01. About\u00a032,109\u00a0restaurants closed on\u00a0Yelp, with\u00a019,590 of those\u00a0permanent, or about 61%. Shopping and retail saw\u00a030,374 business closures, with 58% of those permanent. Beauty and spas saw\u00a016,585 closures, with 42% of which are permanent.<\/p>\n

\"\"<\/picture><\/a><\/p>\n

Professional services, like roofing, landscaping, accountants, and lawyers, experienced some of the smallest declines. Meanwhile, restaurants and retail businesses have been struggling the most. Readers may recall, dying\u00a0restaurants have been panic selling assets\u00a0on\u00a0Facebook Marketplace<\/a>\u00a0as the industry remains in a bust cycle.<\/p>\n

\"\"<\/picture><\/a><\/p>\n

Los Angeles, New York City, and San Francisco were three metro areas that saw the most\u00a0closures and permanent closures.<\/p>\n

\"\"<\/picture><\/a><\/p>\n

And what does this all mean? Well, policy tools, if that is monetary of fiscal, are producing diminishing returns that will likely result in a recovery that does not resemble a “V.” The road to recovery could take years as the latest\u00a0analysis from Opportunity Insights of US business activity\u00a0reveals<\/a>\u00a0the number of small businesses open is plunging.<\/p>\n

\"\"<\/picture><\/a><\/p>\n

<\/div>\n

And by the way, the fiscal cliff, which we’ve warned about since late July (see:\u00a0here<\/a>)\u00a0– is finally showing up in economic data as\u00a0online spending growth hit a wall<\/a>. Lower spending by consumers will pressure businesses and lead to more closures.<\/p>\n

___
\nhttps:\/\/www.zerohedge.com\/markets\/yelp-reveals-60-businesses-closures-are-now-permanent<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Yelp Reveals 60% Of Business Closures Are Now Permanent<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-28616","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/28616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28616"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/28616\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}