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The FTC Economy (“Flatten The Curve”) is led by private biz in a big way

Snacks / Monday, March 16, 2020
_The 3 stages of social distancing_
_The 3 stages of social distancing_

"FTC" is becoming a solidarity slogan... Before mandated government shutdowns, American companies and citizens independently took initiatives to "flatten the curve" of the COVID-19 outbreak — aka, reduce the number of infections so that our healthcare capacity can handle them. Most countries are taking the FTC approach:

  • Pros: Social distancing and closures mean fewer infections, fewer deaths, and healthcare systems not overwhelmed by a dramatic spike in cases.
  • Cons: The economy is devastated by biz slowdowns, the peak of the outbreak happens later (and dies down later), and could repeat if widespread immunity isn't developed.
  • Bottom Line: The opposite approach is "herd immunity" — allowing for a large part of the population to be infected — which risks disastrous consequences for the elderly and people with compromised health. So...

The grassroots spirit takes hold... “The health of a democratic society may be measured by the quality of functions performed by private citizens” — Tocqueville said it, and American individuals/companies are still practicing it, decidedly acting to make flattening the curve possible:

  • Social Distancing: WFH has become the norm and social media is rife with self-imposed "stay home" content — risk being "social shamed" for posting a story at a bar.
  • Corporate Closures: Nike, Lululemon, Apple, Vail Resorts, and other companies closed their businesses from the public before the government mandated them to do so — and Starbucks went takeout-only nationwide before NYC required it.

FTC has us walking a very fine line... Small/medium sized businesses and hourly wage workers are majorly hurt in this FTC economy — no foot traffic = no sales = no work for hourly workers. Private companies have implemented ways to soften the blow and provide relief for those who can't afford to stay home when they don't feel well or when their bosses tell them to:

  • Grubhub waived commission fees (which can be as much as 30%) for many mom & pop restaurants that are suffering right now.
  • Darden Restaurants is providing paid sick leave for all its hourly workers who weren't covered.
  • Starbucks announced a financial support solution for any US baristas who may have been exposed to the virus — Lyft is also doing this for drivers.

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