Politicians, business leaders and economists are beginning to confront the risks of a limited federal response that might speed up the demise of smaller companies and wreck state and municipal finances that pay for schools, law enforcement and infrastructure.
That won’t be the only strain on companies. Many may have to operate with only about half their staff in the office for more than a year, according to Fink. Across white-collar industries, millions are working remotely from home. It would be hard to see a complete return without mass availability of rapid testing, he said.
There’s a risk that the U.S. outbreak will be severe enough to leave a long-lasting impact on the American psyche, undermining Americans’ willingness to take public transport or fly, according to Fink. He said he’s not aware of any of his CEO peers planning international travel this year.
Underscoring the point, this week home-sharing leader Airbnb Inc. and ride-hailing firm Uber Technologies Inc. announced plans for mass layoffs as they wrestle with falling demand and dimmed prospects for the rest of the year.
Many of the U.S.’s 30 million small businesses have struggled to get the relief they need. If the crisis continues, about 25% of those companies could close permanently before year-end, according to an April report released by Main Street America, a network comprising approximately 300,000 small businesses.
Restaurants that typically operate with thin margins will struggle to survive as they plot out ways to lure back customers with social-distancing measures in place, Fink said.
Fink also said he was concerned the worsening economic duress could further fan the flames of nationalism. The devastating impact from the coronavirus could make it a bigger threat to the global order, he said.
This article was provided by Bloomberg News.