The economic fallout of coronavirus

Summary

The video script discusses the impact of the COVID-19 pandemic on businesses like Katz's Delicatessen and the magnet theater in New York City, highlighting the challenges of keeping workers employed and businesses afloat. It features interviews with owners, employees, and economist Joseph Stiglitz, who emphasizes the need for government support and the pre-existing vulnerabilities in the economy. The script also touches on the emotional responses of investors and the importance of financial planning during such uncertain times.

Takeaways

• 🏠 Katz's Delicatessen, a New York institution for 132 years, is facing unprecedented challenges with its current shutdown due to the pandemic.
• 🍽️ Restaurants across the country are prohibited from seating diners, leading to a shift to takeout and delivery services.
• 👷‍♂️ Third-generation owner Jake Dell is trying to keep his 200 workers employed through various means, such as delivery and crowd control.
• 🔪 Long-time employee Alfredo Fernandez highlights the resilience of Katz's, which has weathered many crises but now faces a shutdown.
• 🎭 The closure of theaters like the Magnet Theater in Manhattan has a ripple effect on the many businesses and workers that support them.
• 🤹‍♂️ Actor Edy Herbst co-founded the Magnet Theater, emphasizing the importance of improvisation in dealing with uncertainty and change.
• 🏆 Nobel Prize-winning economist Joseph Stiglitz points out the vulnerability of the pre-pandemic economy, where many households and businesses were living on the edge.
• 💡 Stiglitz criticizes the pre-pandemic economy for its lack of resilience and the overemphasis on narrow-minded efficiency, leading to widespread vulnerability.
• 💸 The U.S. government is taking measures to provide financial support to both large corporations and small businesses, as well as to households.
• 📈 Financial advisor Michael Goodman advises against panic selling in the stock market, even for those nearing retirement, emphasizing the need for a long-term perspective.
• 🔍 Goodman suggests that now is an important time for individuals to assess their financial situation and obligations to ensure they can weather the crisis.

Q & A

How long has Katz's Delicatessen been in operation?

Katz's Delicatessen has been in operation for 132 years.

What is the current situation at Katz's Delicatessen due to the pandemic?

Katz's Delicatessen is prohibited from seating diners, and they are offering bagels and blintzes only to go.

How is Jake Dell, the third-generation owner of Katz's, trying to keep his workers employed during the crisis?

Jake Dell is having his workers do deliveries, crowd control, and prep work to keep them busy and paid.

What is the impact of the theater closures on the surrounding businesses and workers?

The theater closures affect not only the employees of the theaters but also the companies and workers that supply utilities, t-shirts, and beer, as they all feel the impact of the closures.

How does Edy Herbst, co-founder of the Magnet Theater, describe the current situation compared to the past?

Edy Herbst describes the current situation as nerve-wracking and different from any other economic period he has experienced.

What does Joseph Stiglitz, a Nobel Prize-winning economist, believe about the pre-virus economy?

Joseph Stiglitz believes that the pre-virus economy left many families and businesses exposed and at risk, with households living at the edge and businesses taking on too much debt.

What measures is the U.S. government taking to support large corporations and small businesses during the crisis?

The U.S. government is nearing an agreement to make half a trillion dollars available to help large corporations and small businesses.

What is the proposed financial assistance for households during the crisis?

There is another half a trillion dollars for households, amounting to one to three thousand dollars depending on the family size and income level.

What is Stiglitz's suggestion for financial assistance to people during the crisis?

Stiglitz suggests that the government should provide recurring checks to people for as long as the crisis lasts, rather than a one-time event.

What advice does Michael Goodman, president of Wealth Stream Advisors, give to investors nearing retirement during the market turmoil?

Michael Goodman advises that even for those nearing retirement, now is not the time to panic and get out of the market, as the average recovery is typically around 24 months.

How is the Magnet Theater adapting to the current situation?

The Magnet Theater is experimenting with putting performances online, using improvisation to deal with the uncertainty of the situation.