The shutdowns are hard on all but hardest on black-owned businesses. The National Bureau of Economic Research stated in a working paper the number of active black businesses fell 41% from February to April. The abstract states:
The number of active business owners in the United States plummeted by 3.3 million or 22 percent over the crucial two-month window from February to April 2020. The drop in business owners was the largest on record, and losses were felt across nearly all industries and even for incorporated businesses. African-American businesses were hit especially hard experiencing a 41 percent drop. Latinx business owners fell by 32 percent, and Asian business owners dropped by 26 percent. Simulations indicate that industry compositions partly placed these groups at a higher risk of losses. Immigrant business owners experienced substantial losses of 36 percent. Female-owned businesses were also disproportionately hit by 25 percent. These findings of early-stage losses to small businesses have important policy implications and may portend longer-term ramifications for job losses and economic inequality.
Some other highlights of the study are:
The loss of 3.3 million business owners (or 22 percent) from February to April 2020 was the largest drop on record. When conditioning on working roughly two days per week, the losses are even larger. There were 13.6 million business owners working 15+ hours in February 2020 and only 9.8 million in April 2020....Dr. Robert Fairlie of the Department of Economics at UC-Santa Cruz presented the working paper for NBER.
The number of female business owners dropped from 5.4 million to 4.0 million in the crucial two-month window. The decline of one- fourth of female business owners is unprecedented. Male business owners also suffered major losses with a reduction of 2 million representing 20 percent of previous levels....
Turning to racial patterns, Figure 4 (Table 2) displays business ownership by major racial groups. The findings are alarming. The number of African-American business owners plummeted from 1.1 million in February 2020 to 640,000 in April. The loss of 440,000 black business owners representing 41 percent of the previous level is disconcerting...
5 comments:
Do you really think this virus gives a shit who owns a storefront? Get to the damned root! It's not who owns a venue, it's what group frequents the venue with zero regard for proper protection. Kingfish needs some serious education in cause and effect.
@2:58,
Me thinks KF did not author this report. He is only presenting it to those who have half a mind and want to read it and decide for ourselves.
Read the opening paragraph. Yeesh.
I hear the 1% did extremely well.
I reckon you're right 4:35. In his defense, Kingfish also publishes nonsense from Salter and Crawford. My bad.
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