What’s the Impact of the Retail Dip on the Economy and How Should Congress Respond?

Photo by Evan Wise on Unsplash

Bad News
Retail industry sales down 8.6% in March. This is worse than Great Recession and 2001 Dot Com Bust. In fact, it’s the worst dip on in 30 years — the worst on record. (Source: CNN)

Worst News
However, those numbers don’t fully account for most states — many of whom didn’t start lock downs until April. (Source: The Wall Street Journal)

Cascading Effects
Retailers wont pay rent or they’ll shut down stores or do layoffs / furloughs, or declare bankruptcy. (Source: Retail Dive) This directly effects commercial real estate which in turn effects banks who old 70% of commercial real estate leases. Stress to banks means tightening of credit markets, further straining consumers and companies alike.

Next Move
Congress needs to more stimulus

1. UBI: $2k/month until shutdowns stop. (Source: The Hill)’
2. Student Loans: Delay student loans and forgive up to $50k of student loans which accounts for 80% of debt. (Source: Forbes)
3. Small Businesses: Replenish PPP fund and EIDL loan fund as the funds have all been used up. (Source: Vox)
4. Unemployment: Give states more…