Businesses Are Reopening—But Customers Aren’t Showing Up
Business owners in states like Georgia and South Carolina, where governors have moved to reopen parts of the economy, are facing a difficult choice: open their doors again and risk increased coronavirus transmission or stay closed while the bills pile up.
TIME reporter Andrew Chow spoke with owners and staff at salons, tattoo parlors and gift and book stores who decided to reopen. “At the heart of it is this divide between the greater good and their economic well-being,” Chow says. “Their livelihoods are at stake.”
Small business owners are accruing tens of thousands of dollars of bills every month that they’re not open—sinking deeper and deeper into debt as their own employees live paycheck-to-paycheck. “Their choices are pretty abysmal,” Chow says. “It’s a pretty grave situation for these people. They feel trapped.” Some are dealing not only with anxiety about whether they may be forced to shut down once again if the coronavirus outbreak worsens but also “a sense of potential guilt”—the fear that “their decisions may contribute to it getting worse,” Chow says.
Even if they do choose to stay open, profitability isn’t guaranteed. A bookstore owner in South Carolina recently made just $6.80 in one day. “Even though the governor has mandated we can be open, I think people are deciding for themselves,” Patricia Spires, manager of the Book Dispensary in Columbia, S.C., tells TIME. Not all industries will fare the same though. Many hairdressers, for one, are seeing increased business. (It seems people really want to avoid potentially regrettable at-home quarantine haircuts.)
Government assistance is finally starting to come in for small businesses and while that may be a saving grace for some, others feel the support isn’t enough to keep them afloat. A small business loan isn’t going to pay for every single cost these companies have, especially if they’re making less than half of what they used to, Chow says.
More than 4.2 million people around the world had been sickened by COVID-19 as of 8 PM eastern time last night, and more than 291,000 had died.
Here is every country with over 40,000 confirmed cases:
The UK eased some lockdown restrictions today to reflect Prime Minister Boris Johnson’s confusing guidance that people who cannot work from home should return to their places of employment. There will now also no longer be limits on how much time people can spend exercising outside, and people will be allowed to visit each other’s homes while social distancing. Some public health experts worry that these policy changes ignore science and prioritize politics. “If the government genuinely thinks this kind of messaging can be enacted without increasing the infection rate, they’re simply not listening to the science,” Robert West, a professor of health psychology at University College London, tells TIME.
Italy started to lift some lockdown restrictions last week but then experienced a big jump in coronavirus cases in its hardest-hit region; more than 1,000 cases have been reported in Lombardy since Monday evening. Pakistan reported 2,000 new infections in just one day after loosening lockdown restrictions; crowds flocked to packed markets across the nation, the Associated Press reported.
Some countries have been more fortunate. New Zealand, hailed for its coronavirus response and ability to keep cases extremely low, lifted its state of emergency today, according to the New York Times. For the second day in a row, it reported no new infections.
The city where the global coronavirus pandemic first began is taking precautions after a cluster of six new cases emerged there. Wuhan, China, moved forward today with its efforts to test its entire population of 11 million within 10 days.
Hong Kong reported two new coronavirus infections today, breaking a 23-day streak in which no new cases of local transmission were reported, the Times reports.
Meanwhile, all 54 African countries are now reporting coronavirus cases as Lesotho confirmed its first case of COVID-19 today.
The Situation in the United States
The total number of COVID-19 diagnoses in the U.S. rose to more than 1,369,000 as of 8 PM eastern time yesterday, and the death toll surpassed 82,000.
A new coronavirus aid package is in the works. The legislation, proposed by House Speaker Nancy Pelosi yesterday, would provide more than $3 trillion in relief, including money for states and cities, a new round of cash payments for individuals, and “hazard pay” for essential workers. The U.S. government sustained a record monthly deficit of $737.9 billion last month, but Federal Reserve Chairman Jerome Powell said today that additional government spending is likely necessary to avoid long-term damage to the economy from the coronavirus pandemic. The House could vote on the new spending package as soon as Friday but the Republican-majority Senate, led by Senator Mitch McConnell, doesn’t appear to be in a hurry and plans to delay its decision until after Memorial Day.
U.S. State Representatives may soon be working from home, as Democratic leaders pushed ahead today with their proposal to change House rules and allow lawmakers to do their job remotely for the first time, the New York Times reports. The Senate is not considering a similar plan—at least not yet.
As President Donald Trump moves to push Americans to get back to work, White House senior adviser Jared Kushner acknowledged yesterday in an interview with TIME’s senior White House correspondent Brian Bennett as part of the TIME100 Talks series that there is inherent “risk” in reopening the economy. Kushner’s remarks come the same day as Dr. Anthony Fauci warned in Senate testimony that “the consequences could be really serious” if the country reopens too fast. Trump’s son-in-law said Fauci is “incredibly knowledgeable” but that his advice is not the only factor to consider.
One factor the White House seems to have not considered: the advice of the U.S. Centers for Disease Control and Prevention. The Trump Administration rejected the CDC’s detailed and restrictive guidance in favor of a simpler approach. The Associated Press published the full text of the CDC report today.
Kushner also told TIME that there’s a chance the presidential election could be postponed, although that isn’t his call to make. Meanwhile, the Democratic National Committee appears to be making plans to adjust its protocols to accommodate life during the pandemic. It voted yesterday to approve a plan that would allow for a virtual convention this August.
All numbers are from the Johns Hopkins University Center for Systems Science and Engineering, and are accurate as of May 12, 8 PM eastern time. To see larger, interactive versions of these maps and charts, click here.
Goldman Sachs' new video series featuring insights on the implications of COVID-19 across markets, industries and the global economy.
WHAT ELSE YOU SHOULD KNOW
A Former FDA Commissioner’s Take on How to Safely Reopen America
Accessible, dependable and affordable testing for people who have symptoms or are at risk of contracting the disease will be key, Dr. Scott Gottlieb writes for TIME. Read more here.
Major League Baseball Is Planning a Comeback
It won’t be easy. MLB owners have approved an initial plan that would allow an 82-game season (beginning in July) instead of the regular 162 games—with some caveats. For example: no fans will be allowed in stadiums, at least to begin with. Read more here.
Celebrating Ramadan Under Coronavirus Lockdown in the West Bank
Dr. Zeena Salman, a Sudanese-American pediatric oncologist, lives next to a mosque in the Palestinian territories that has changed its call to prayer. “Instead of saying come to prayer in Arabic they say pray in your homes,” Salman writes for TIME. Read more here.
One Step Closer to a Potential Vaccine
The U.S. Food and Drug Administration yesterday gave fast-track approval to a vaccine candidate from Moderna Therapeutics. Just days earlier, the agency gave the company the green light to proceed to Phase 2 testing of the vaccine. Read more here.
COVID-19 Is Helping Normalize Mental Illness
“Instead of looking at the post-COVID-19 mental health future through a lens of inevitable doom, we can, and should, use this moment as the impetus for the changes that mental health care has always pushed for,” Dr. Jessica Gold, an assistant professor of psychiatry at Washington University in St. Louis, writes for TIME. Read more here.
It’s Hard to Sell a Home Right Now
TIME reporter Katy Steinmetz and her husband have dreamed of selling their small house in the Bay Area to move someplace more rural and affordable for years now. The time was finally right—and then the coronavirus pandemic struck. Read more here.
The Economic Principle That Tells Us a Lot About Coronavirus and Climate
With both climate change and the coronavirus pandemic, simple economics show that the benefits of early action outweigh the costs. Read more here.
As Coronavirus Restrictions Lift, Millions in U.S. Are Leaving Home Again
As governors in some states loosen lockdown measures, The New York Times analyzed cellphone data to track the movements of U.S. residents. Read more here.
Thanks for reading. We hope you find the Coronavirus Brief newsletter to be a helpful tool to navigate this very complex situation, and welcome feedback at coronavirus.brief@time.com.
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Today’s newsletter was written bySanya Mansoor and edited by Elijah Wolfson.
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