BROPHY'S SANTA BARBARA
Every two weeks we endeavor to answer any and all questions that our guests send in. If you have visited Brophy Bros. in Santa Barbara and have a question, please send it along to brophybros.com.
Here is a question from a man from California:
Having the opportunity to eat fresh seafood on the deck at Brophy Bros. is something I have enjoyed for years. The arrival of the pandemic has changed that. Now, as the news is filled with talk of ‘reopening the economy’ after the coronavirus crisis subsides, I am wondering what we might expect to see happen.
What will happen remains a matter of speculation, of course, because the world has no past experience dealing with a pandemic of this scope. We can, however, look and see what can be learned from China’s attempts at economic reopening.
According to a recent article in Barron’s, the early numbers from China’s recovery are in, and they don’t bode well for the U.S. economy as it grapples with the fallout from the current crisis.
The ruling Communist Party says the outbreak is under control, but the damage to Chinese lives and the economy is lingering. Getting back to business has not been easy with many millions of workers still wary of spending much money, or even going out.
Some cities have resorted to handing out shopping vouchers, such as the eastern city of Nanjing, that gave out electronic vouchers totaling 318 million yuan ($45 million) via smartphones to spend at restaurants, bookstores and other merchants. The state media has also begun broadcasting images of government officials eating in restaurants to try to reassure consumers.
The biggest drop has been at restaurants, where spending is down about 46% from where it was a year ago. Spending on meals was actually lower in March than it was in February...despite the economy’s reopening.
The ruling party has told companies to keep paying wages and avoid layoffs. Private companies were promised tax breaks, low-cost loans and other help, but state media reports say bureaucracy is slowing the flow of aid. One month after China announced a plan for the staggered reopening of the economy, only half of the country’s small businesses have reopened, and it isn't clear how many companies might close for good under the pressure of paying rent and wages with no revenue.
So as the U.S. begins to think about reopening the economy, the latest figures from China show that lifting restrictions doesn’t mean a quick recovery. “What is not fully back, or is completely missing, is the demand," says Louis Kuijs of Oxford Economics. Consumers need to be reassured that their health and jobs are protected.
BROPHY BROS.
Photo Credit Kcruts Photography
119 HARBOR WAY. SANTA BARBARA, CA 93109
805-966-4418
BROPHY BROS.