Summary
Highlights
Katz's Delicatessen, a business operating for 132 years, has never closed until now, only offering takeout. The owner Jake Dell is trying to keep his 200 employees working, with waiters delivering food and busboys doing prep work. This illustrates the immediate impact of the pandemic on local businesses.
The global economy is experiencing an unprecedented shutdown. Major sports are halted, factories and malls are closed, and entertainment venues like Broadway and independent theaters like the Magnet Theatre are dark. Ed Herbstman, co-founder of the Magnet Theatre, expresses concern for the future, highlighting the wide-reaching effects on associated businesses and workers.
Nobel laureate in economics, Joseph Stiglitz, calls this economic period the most nerve-wracking. He explains that the economy was already vulnerable before the virus, with many households and businesses having little financial cushion. He criticizes the focus on efficiency over resilience, which left many Americans vulnerable.
Governments are responding with measures like the Federal Reserve cutting interest rates to near zero and Congress proposing a half-trillion dollars for corporations and small businesses, plus another half-trillion for households. Stiglitz suggests that one-time checks are insufficient and advocates for ongoing support for as long as the crisis lasts, comparing the necessity to funding World War II.
Michael Goodman, President of Wealthstream Advisors, notes that while clients are anxious, some are looking to invest in the market despite recent plunges. He advises against panic selling, especially for those nearing retirement, as market recovery typically takes about 24 months. He emphasizes the importance of understanding personal financial obligations to navigate the coming months.
The Magnet Theatre, dedicated to improv, is adapting by putting performances online, reflecting their core teaching that 'everything is uncertain.' They teach people to calm down, take a breath, and react rather than plan, a philosophy increasingly relevant in the current crisis.