The Economic Effects of Rioting and Looting

southernbubby

Thu, Jun 04 2020, 4:44 pm

Are these cities ever going to recover? Will people leave hard hit cities and move to small towns? What is the future of small businesses?
I noticed that Cuomo wants protesters tested for COVID, another expense for the state. What about the expenses incurred in treating the virus that was possibly spread by the virus?
What about the hundreds of arrests and the cost involved?
Any answers? All I have is theories and opinions.

amother

Orange

Thu, Jun 04 2020, 5:00 pm

southernbubby wrote:

No one cares they only care when they can pin on trump

Mothers

Thu, Jun 04 2020, 5:08 pm

Unfortunately, I think the economic effects of rioting and looting - while distressing - will pale in the face of the economic effects of the COVID-19.

SixOfWands

Thu, Jun 04 2020, 5:13 pm

amother [ Orange ] wrote:

No one cares they only care when they can pin on trump

Very funny.

The economic impact is horrific. Hopefully people had insurance. But rebuilding will be difficult.

In one city, supermarkets that had been opened in food deserts were ransacked and destroyed, including computers and registers. Police were called, but in one case, didn't come for 15 hours. And do you know what the owner turned around and did? He distributed food that was being delivered to the community, free, because they need it. (Just to add -- the owner is Jewish. Very impressive!)

But he's lucky. He has a lot of other business interests that will help him.

The communities will need to pitch in to help. AIUI, they are with respect to the gentleman above. They will need to do so generally, and the government will need to provide low interest loans to help.

youngishbear

Thu, Jun 04 2020, 5:39 pm

Gucci will probably survive, though as I understand it insurance doesn't cover these losses. I'm most concerned about the small businesses that have been devastated.

amother

Honeydew

Thu, Jun 04 2020, 6:46 pm

Lets try to be optimistic.

The contractors, construction guys, handymen, glass shops will be earning money now. They will spend money and help start our economic wheel turn again.

amother

Coffee

Thu, Jun 04 2020, 8:50 pm

Black Friday will presumably be cancelled. Is it too late to go grab some free big screen tv's and rolex watches this week? Asking for a friend.

amother

Forestgreen

Thu, Jun 04 2020, 8:52 pm

I always have loved coffee!

HonesttoGod

Thu, Jun 04 2020, 8:52 pm

I actually think the rebuild will help the economy is certain areas (as the above poster said).
I also think COVID did a bigger number on the economy than the riots/looters. There have unfortunately been lootings before and whilst damaging, they didn't destroy the economy completely like the Federal Reserve worry COVID did.

Don't worry, Trump will bring it all back to "amazing, hugely awesome" (#sarcasm)

southernbubby

Thu, Jun 04 2020, 9:01 pm

HonesttoGod wrote:

Okay but now, these businesses have lost everything. Are they insured for theft and vandalism die to rioting?

southernbubby

Thu, Jun 04 2020, 9:02 pm

amother [ Coffee ] wrote:

Black Friday will presumably be cancelled. Is it too late to go grab some free big screen tv's and rolex watches this week? Asking for a friend.

They probably need to cancel X-mas season as well.

youngishbear

Thu, Jun 04 2020, 9:05 pm

amother [ Honeydew ] wrote:

Lets try to be optimistic.

The contractors, construction guys, handymen, glass shops will be earning money now. They will spend money and help start our economic wheel turn again.

The Broken Window Fable by Frederic Bastiat

Quote from That Which Is Seen, and That Which Is Not Seen:

Have you ever witnessed the anger of the good shopkeeper, James B., when his careless son happened to break a square of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact, that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation: "It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?"

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier's trade — that it encourages that trade to the amount of six francs — I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, "Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen."

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way which this accident has prevented.

Let us take a view of industry in general, as affected by this circumstance. The window being broken, the glazier's trade is encouraged to the amount of six francs: this is that which is seen.

If the window had not been broken, the shoemaker's trade (or some other) would have been encouraged to the amount of six francs: this is that which is not seen.

And if that which is not seen is taken into consideration, because it is a negative fact, as well as that which is seen, because it is a positive fact, it will be understood that neither industry in general, nor the sum total of national labor, is affected, whether windows are broken or not.

_______________________________________________________________________________

tigerwife

Thu, Jun 04 2020, 9:09 pm

HonesttoGod wrote:

This on top of COVID is a death blow for many. It’s not one unanticipated major loss. It’s a major loss following months of zero-minimum business.

southernbubby

Thu, Jun 04 2020, 9:10 pm

Another thread had the sad story of a minority owned music school that taught minority kids. The looters destroyed it and took everything. That's pure greed and evil and won't improve anything for anybody.

amother

Purple

Thu, Jun 04 2020, 9:29 pm

youngishbear wrote:

Gucci will probably survive, though as I understand it insurance doesn't cover these losses. I'm most concerned about the small businesses that have been devastated.

I was hoping insurance would cover it.
I read about a man who own 2 clothing stores and his pre-pesach shopping was a huge financial loss.
Then both his stores were ransacked.
I thought at least the insurance will save him.

amother

Purple

Thu, Jun 04 2020, 9:31 pm

southernbubby wrote:

There was a older black women in a video whose restaurant she was a partner in destroyed. She was crying - saying why doesn’t her black life matter.
It was heartbreaking.
How do people dig up out of that?

amother

Forestgreen

Thu, Jun 04 2020, 9:33 pm

It is just so terrible.
A blow upon blow.

We can choose to look for silver linings when something challenging happens to us; would never do anything other than offer empathy support and help when something happens to someone else.

It is heartbreaking.

southernbubby

Thu, Jun 04 2020, 9:34 pm

amother [ Purple ] wrote:

Yeah I saw that and it was heartbreaking. We have to take back our streets.

amother

Violet

Thu, Jun 04 2020, 9:39 pm

If any of you see any of these designer bags being sold on ebay or mercari or thred up let me know, I can use a new bag.