Ground Reports, Real Life Examples of Economic Impact from COVID


Posted originally on the conservative tree house on February 11, 2021 by Sundance

Friend of the TreeHouse John Spiropoulos provides some more examples of how COVID is hurting small businesses while local and state government seem oblivious to their plight. John notes these are real people, middle-America, not statistics, that are hit by policies and regulations that local officials dictate often by fiat.

As John shares: “This is another in our ongoing series of reports on the adverse impact of government China Virus restrictions on small business and their employees. This is the story of a Flagstaff, Arizona businessman that invested nearly his entire life savings in a business that was hit hard by restrictions imposed by the state government.”

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“This next story features a Phoenix, Arizona business owner that began his business when he was laid off by his previous employer.  This features a start up air conditioning business in Phoenix. One of the owners was laid off at the beginning of the China Virus crisis, so he decided to team up with an associate and launch his own business. They’re making a go of it.”

One observation about all of the business I’ve visited. Everybody had to throw out their existing business model and adapt their operations to maximize their revenue and, hopefully, maintain some semblance of profitability. From my perspective, the hardest hit businesses are those enterprises that are subject to capacity limits that limit the number of customers.

For example, the air conditioning business switched from focusing on installations in existing homes to residential and commercial construction. It was a challenge but they’re not limited to the number of clients they can get. Restaurants, on the other hand, have capacity limits. And so does the amusement business featured in one of today’s reports.

A final thought. In many cases, state restrictions allow business owners to open but with no chance of making a profit. Who thinks up this stuff? It reminds me of the old joke about two partners running a business. One says, “We’re not turning a profit. In fact, we’re losing money on every sale.” The other responds by saving, “That’s OK, we’ll make it up in volume.”

John Spiropoulos

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