By Mike Sunnucks | Rose Law Group Reporter
The economic impacts of COVID-19 and all the associated shutdowns and pullbacks in consumer and business spending are hitting the “haves” and the “have nots” very differently, according to veteran economist Elliott Pollack.
Pollack — who is CEO of Scottsdale-based Elliott D. Pollack & Co. — talked about how job losses are more dramatically impacting those lower on the economic ladder during a virtual economic forum hosted by the Pinal Partnership on Friday, Dec. 4.
Pollack said while many higher-wage workers kept their jobs and were able to work at home their lower-wage counterparts — especially in service sectors — felt the brunt of the 22 million job losses initially caused by the pandemic earlier this year.
“The have nots lost their jobs,” Pollack said.
He said businesses and jobs related to events, crowds and going out were and continue to be hit by the pandemic and its related shutdowns. “Anything that involved crowds. That is where the issue is,” Pollack.
Pollack said the lack of a new federal COVID stimulus bill also hits low-wage workers because they need unemployment and other benefits.
He also noted the unique nature of COVID impacts on the economy. “People in this cycle spent a lot of goods and nothing on services,” Pollack told the Pinal Partnership forum.
Pollack noted this year has seen notable increases in consumer spending on furniture, pet products, guns and alcohol.
He also said the economic dynamics of 2020 as well as 2021 are uniquely different than traditional business cycles.
It’s something totally induced by government,” Pollack said of COVID orders’ impacts on the economy and consumer spending.
He expects one-third of small businesses to go under because of the impacts of the pandemic.
Still, Pollack is optimistic there will be a short-term economic boom, followed by above average growth if COVID vaccines help return the economy and everyday life back to a sense of normalcy.
“The majority of the parade of horribles will go away soon,” Pollack said.
