Arizona’s economy was one of the strongest in the United States before the coronavirus shutdown occurred. Over 300 people per day were moving to the state, allowing for the creation of 350,000 new jobs since 2015.
About 70,000 new jobs were expected in the state in 2020 before COVID-19. If the economy can right itself by the end of the summer, that forecasted figure could still be reachable.
That means there’s one question to ask about the economy right now: how does Arizona open for new business when the threat of the coronavirus eventually disappears?
Every Arizona County Has at Least 1 COVID-19 Case
Because an economy as robust as today’s has never been artificially closed in human history, moving forward is more of a guessing game than a fact-based approach.
The good news for Arizona is that there is still plenty of strength found in multiple industrial sectors after the COVID-19 emergency. We can begin the road to recovery by implementing two ideas right away.
Arizona’s government needs to work with the federal government to suspend all bankruptcy procedures temporarily. That step would eliminate the transfer of assets to secured creditors. France has already taken this step by doubling the time a business cannot pay its obligations to the bankruptcy filing.
Then the state must design a restart procedure that meets local needs. That means creditors will likely need to write off a portion of the debt from this time. No amount of restructuring will be useful for companies that have been paying salaries without having any revenues coming in from customers.
Some businesses won’t open right away after the lockdown ends because the process needs to be slow and steady to support the economy. Those owners also need help.
What Can People Do Right Now?
The best thing that Arizonans can do right now is to support local businesses whenever possible Continue to follow your usual spending patterns by getting curbside pickup at restaurants, ordering pizzas, and shopping online from local outlets.
When the economy reopens, go out to these companies immediately to spend some money. Don’t go into debt with this process, but please do consider a more significant transaction.
Then be patient with people. Some businesses are going to go bankrupt, but that doesn’t mean the owners are going to disappear. There are always new ideas to pursue.
We are going to talk about this time in our lives for generations. How we respond in the aftermath will determine if it becomes a positive experience.