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Coronavirus: Why California small businesses might not survive

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Coronavirus: Why California small businesses might not survive

Whatever the medical benefits that come from prolonged coronavirus locking, the California small business community will suffer severe symptoms, possibly over the next few decades. Small-scale state entrepreneurs, especially in poorer areas, faced large adjustments and possibly annihilation, an increasingly complicated situation for some people with damage stemming from protests over George Floyd’s murder.

These small companies were in a parlous condition before COVID-19. Apart from the extraordinary wealth generated in Silicon Valley and among real estate speculators and entertainment elites, much of the country’s growth in recent years has been in the lower-class service business. As a result, 80% of all jobs created in the state over the past decade have been paid less than the average state income and half of them are well below $ 40,000, according to Marshall Toplansky, a researcher at Chapman University.

California COVID-19 mortality rate is much lower than in the Northeast countries, but our two-pronged economy is very vulnerable to a decline in the service business, and especially in the hotel, retail and restaurant sectors. About 90% of the businesses surveyed this month by BizFed, the Los Angeles County business group organization, have been severely affected and nearly half have experienced a revenue drop of more than 50%.

Before the pandemic, California’s drivers and leaders could convince themselves that the state had developed a new economic model that was progressive and sustainable. COVID-19 and the economic downturn have wiped out fancy facades, like our unemployment rate now beyond the national average, even worse from New York, a U.S. coronavirus outbreak center This is very bad in Los Angeles, where less than half the population now has jobs. L. County has lost 1 million jobs pandemic and suffer from higher unemployment rates than one of California’s main urban areas.

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Southern California greater economic vulnerability reflecting, in part, its unusual exposure to some of the hardest hit industries, especially tourism and hospitality and international trade. But economic damage caused by locking up for more than two months spread to industries that depend on selling goods outside the region – such as clothing and medical equipment – and the entertainment industry, which according to recent estimates may have lost more than 100,000 jobs.

If consumers are slow to continue their pre-coronavirus activities, many small companies that have struggled with state business regulations and high taxes may be tempted to go elsewhere. Joseph Vranich, a relocation expert who recently moved his own business from Irvine to Pittsburgh, has identified 2,183 publicly reported California investment release events between 2008 and 2016. However, experts in site selection generally agree that at least five relocations were carried out without public knowledge for any who don’t.

The places with the biggest advantages of California are in Texas, Nevada, and Arizona. Between 2000 and 2013, California was a source of surroundings one fifth of all work who moved to Texas – 51,000 jobs.

Perhaps the most directly threatened, however, are small businesses that are mostly focused on serving the local population. Take a restaurant. Most of the more than 90,000 restaurants in the state are owned and operated by independent owners, who employ 1.4 million food service workers, according to California Restaurant Assn. This generates more sales tax ($ 7 billion per year) than any other industry and about 60% is owned by people of color. Unless the country finds a way to help, 20% to 30% of these restaurants will never open again, the association has estimated.

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Like a small business country, many of these companies have not been able to access federal funds to withstand the decline. Washington’s bailout program, even some Republican economists admitted, had been tilted for the sake of Wall Street and large companies. Especially excluded, note local advocates, smaller, often immigrant-run businesses that do not have strong bank relations. They also often lack savings and most of their business is money-based. Others are owned and operated by non-citizens, some of whom are undocumented people.

In many neighborhoods, there is widespread concern that local owners of small shops, apartment buildings and commercial properties will not be able to survive and will be taken over by outside investors without ties to the area. The need for a social distance protocol has worked against small shops that rely heavily on personal contact with customers and cannot make all of their income through online sales. Some already see this trend as an acceleration of gentrification that occurred before coronavirus.

“Business owners are afraid,” advises Mirabel Garcia, who works on micro-loans for East L.A.-based. Inclusive Action for Cities. “They worry they won’t be able to stand against Wall Street and big investors.”

California will emerge from this crisis, but what is the state like? The power of technological oligarchs – the biggest winners during the coronavirus crisis – is likely to advance their hegemony. But the reality for most in the business sector will be far greater: empty stores, ruined dreams, default mortgage and fewer opportunities for the type of entrepreneur who created California’s economic dynamism.

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In this economic crisis, the state government needs to pay attention to the interests of grassroots entrepreneurs. This includes helping small companies adjust to new social distance requirements and providing technical assistance so they can compete more with megastores or Amazon. It also means protecting small business owners lawsuits related to coronavirus claims. Actions such as the California 5th Assembly Session, which seeks to severely limit contract work, must at least be postponed at the time of the unemployment record.

Given California’s budget problems that are getting deeper, rooted big state expense and retired, state Not capable to support a lonely business and millions of unemployed workers. There is only so much that can be done to curb the “creative destruction” caused by the pandemic.

But the entrepreneur, if nothing else, is tough. If they are given enough help to survive, they will eventually adjust to new realities, and find new ways to develop for the benefit of all Californians.

“It breaks my heart to see all the empty stores,” said Vivian Bowers, who runs her family dry-cleaning business, which has been in South Los Angeles for 63 years. “But entrepreneurs are tough. In this business we have survived recessions and two riots. Give people a chance and they can come back. “

Joel Kotkin is a Fellow of Urban Futures at Chapman University and executive director of the Urban Reform Institute. He is the author of “The Coming of Neo-Feudalism.” @joelkotkin

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Thiago Monteiro in 14th and 15th before the arrival of the WTCR in Portugal – Observer

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Thiago Monteiro in 14th and 15th before the arrival of the WTCR in Portugal - Observer

Portuguese driver Thiago Monteiro (Honda) finished 14th and 15th this Sunday in the two World Touring Car Cup (WTCR) races held in Aragon, Spain, which precede the Vila Real race.

The Portuguese rider always rode in the tail, he was hindered by the fact that Honda had more excess weight than his rivals.

“If they told me that I would be in this position, I would not believe it. But the reality is that we have not been able to withstand a number of adversities. From the moment when the pace is much lower than other rivals, we are prepared in advance. It’s heartbreaking,” the Portuguese rider began his explanation after the fourth round of the championship.

The Portuguese rider struggled to find the best balance in his Civic, as did his teammate, Hungarian Attila Tassi.

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“We still had problems, and we could not reach the full potential of the car. It was very difficult, unpleasant and discouraging, especially since we are going to Vila Real and this scenario does not suit me. But we will have to continue to look for our own path and believe that everything will work out, ”Thiago Monteiro concluded.

Belgian Giles Magnus (Audi) and Spaniard Mikel Ascona (Hyundai) won both races on Sunday.

Ascona leads the league with 129 points, while Thiago Monteiro is 16th with 12 points.

The WTCR competition in Portugal will take place next weekend in Vila Real.

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Joao Almeida became the champion of Portugal in cycling

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Joao Almeida became the champion of Portugal in cycling

This Sunday, Portuguese cyclist João Almeida (UAE-Emirates) became the Portuguese champion in cross-country cycling for the first time, winning the elite national championships held in Mogaduro.

In his first online race since Joao Almeida was forced to pull out of the Vuelta Italia after testing positive for the coronavirus, he won his first national title since becoming time trial champion in 2021.

Almeida crossed the finish line in Mogadora, covering the 167.5 km distance in 4:08.42 hours, 52 seconds behind Thiago Antunes (Efapel) second, Fabio Costa (Glassdrive-Q8-Anicolor) third, and Rui Oliveira (UAE). – Emirates), fourth.

In the end, João Almeida stated that he was “very pleased” with the victory, admitting that the race “went very well” and thanking his teammates.

Former national champion José Neves (W52-FC Porto) did not finish the race, as did Rafael Reis (Glassdrive-Q8-Anicolor) who won the time trial title on Friday.

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Portuguese military admits ‘it will take time’ until territory is taken under control

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Portuguese military admits 'it will take time' until territory is taken under control

The “path” chosen for about a year in the fight against rebel groups in the province of Cabo Delgado in northern Mozambique is “the right one,” Brigadier General Nuno Lemos Pires said in an interview with Lusa.

“Now, while the situation is not fully under control, we all understand that, as in any other counter-terrorism situation in the world, it will take a lot of time,” added the head of the European military training mission, although he acknowledged that this “ does not mean that sometimes there are no fears and failures.

However, “this is part of what constitutes an action taken against terrorists who operate in a very wide area, who in themselves have the initiative and the ability to hide in a very wide area,” he said.

In fact, he stressed, many of the recent attacks that have taken place in the south of Cabo Delgado in recent weeks are due to the fact that Islamist extremist rebels had to “flight from the north” of the province.

“Because this was a consolidated military operation carried out in close cooperation between the Mozambique Defense and Security Forces (FSS), [e com as forças d]Rwanda and SAMIM (Southern African Development Community Mission (SADC) in Mozambique), who were clearing out the intervention areas that existed in the area, the reaction of many terrorists was to flee the area, go further south, where they were not pursued. , and make new attacks,” he explained.

“In such cases, the initiative almost always belongs to the terrorists. There are few of them, they hide among the population, they move over very large territories, with a lot of dense vegetation, it becomes very difficult to find them, but you can easily move,” he continued.

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On the other hand, the Portuguese general emphasized, “it is now difficult for these groups” “to concentrate power and forces for large-scale operations, as was the case three years ago during the conquests, such as Mocimboa da Praia or Palma.” ,” he said.

“They don’t have that ability. Many of these attacks even demonstrate [estratégias] survival [clássicas das guerrilhas]. They’re looking for food, they’re looking for supplies, they’re searching deep down for a place where they can survive, because the area is already under quite a lot of control. [por parte] Mozambique FSS, Rwandan forces and SAMIM,” he explained.

In this context, Nuno Lemos Pires highlighted the “quick response” of the Mozambican authorities to each of these developments, starting with head of state Filipe Nyusi.

“I think it is exemplary that the moment there is a movement or a series of significant attacks in other areas, we immediately see the President of Mozambique heading north, linking up with his Chief of the General Staff of the Armed Forces (CEMGFA). , with the Minister of Defense, with the Minister of the Interior, and outline plans on the ground for a quick change of equipment and the ability to respond to such movements,” he said.

During one such trip to northern Mozambique in mid-June, Mozambican Interior Minister Arsenia Massingue said that Mozambican police were informing the “enemy” – the rebel forces in Cabo Delgado – about the positions of the FDS and allied forces on the ground.

However, Lemos Pires downplayed the situation. “We must be aware that there are infiltrations in any political system. It’s happening everywhere. Ignoring this dimension is tantamount to ignoring what is happening everywhere,” he said.

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“I don’t know of a single case of insurgency, counterinsurgency, terrorist or counter-terrorist combat where these leaks didn’t happen frequently. You need to be careful. .

In addition to the vastness of the territory that has been the scene of conflict and the topography favorable to insurgent guerrilla strategies, the porous borders with Tanzania to the north of Cabo Delgado and Malawi to the northwest also pose a danger. challenges the SDF and allied forces of SAMIM and Rwanda.

Lemos Pires also relativized this question. “We are talking about transnational terrorism, and it is good to understand that the situation in the north of Mozambique, in Cabo Delgado, is not limited and is not limited – and has never been limited – exclusively and exclusively to this region. A phenomenon that exists throughout Africa. , namely in Central Africa,” he said.

The UETM commander even took advantage of this circumstance to formulate an “extended response” to “a broad problem, a regional one, and the solution must also be a broad regional one.”

Therefore, “it’s very good what we see here on the ground, in fact, this is the unification of the efforts of regional African forces to try to deal with a problem that really worries everyone,” he concluded.

“What happens in one region can affect another. That is why it is in everyone’s interest that these groups be fought, detained and that the narrative that they are currently spreading can be counteracted – we hope that there are fewer and fewer successes,” the Portuguese general stressed.

NPS // PYAA

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Lusa/The End

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