We hear now all the time that industries and business are ordered to shut down due to Covid related health orders. But we are rarely told about the effects this has on other business or industries. We only hear of jobs being affected or lost.
The effects of the shutdown are extreem and wide reaching. Lets see:
1) Loss of income, but cost keep going: rent, power, telephone, internet, website provider, insurance, tax, cost to manage jobkeeper or other payments (need to pay accountant), monthly activity reporting to tax office, maintaining on-line shops (which make little income because your market is shut down, vehicle registration (even if they sit immobile for month), land rates, water, maintenance, workers compensation, car insurance, leases, overdraft interest, bank charges, merchant charges….
Other industries are affected: couriers, forwarder (airlines and ocean freight due to less import), taxi, petrol, car repair and service (no sales calls + no business travel), airlines, airport transfer, public transport, office supplies, contractors, other supplier, cleaner, the list goes on. If you own the business, you have a lot of private investment in the business in time and money, you can loose. But business are rich and owners have big super balances? Far from it. Because of lost income the owner, who also is an employee, may still have to work 40-50 hours a week, maintaining the (shut down) business and secure the investment. At last counting for as little as $3,00/hr. But if you loose the business you loose big. Overdrafts, credit cards, leases will all want to be paid. Deferred rents, loans, etc.. Due to guarantees required, you may loose your home and more…so if the industry is ordered to shut down, the small and medium sized business has to try to soldier on. No shareholder to fall back on, no government bailout, but accounting for 70%+ workplaces in a country. In the mean time accumulating more debt in order to preserve what they build over time and hopefully restart at the end….this is a spiral going through industries extending into other sectors….for a pot of gold at the end? No, because you love or did love, what you were doing and you simply can not afford to loose what you build. If you loose you may be to old to start again or to get an even menial job somewhere…