Collapse of the Service Economy - Part 4

Posted On: Wednesday - December 30th 2020 8:28PM MST
In Topics: 
  Economics  Kung Flu Stupidity

(Continued from Part 1, Part 2, and Part 3.)

The last 3 posts on the service economy really didn't go along with the title, as I had initial intended to write just one post (yeah, that happens a lot here). The title is good for this conclusion though.

We all have seen small service businesses close down around us. That is, the restaurants and bars in which those aforementioned folks were selling each other, and me too, occasionally those craft beers and gourmet burgers. It's hard to tell which ones will ever re-open. I can tell you that 3 favorites, one only a mile away from us, and 2 of the most favorites in our relatives' hometown are close for good. I'm just thinking of myself here (and a family member who I knew would be just devastated about 1 of them, his favorite), I guess, but this really pisses me off now. I'm sure the readers here have their own hangouts in mind that are gone for good.

Restaurants and bars aside, hotels and motels are another big area of the economy for which the elites can't outsource the whole deal. Yes, they can import the cheap labor of course, oh, and the owners - looking at you, Mr. Patel, and you Mr. Patel, and ... x 10,000. I've been traveling just as much as before this whole Kung Flu PanicFest, and I talk to the managers of hotels in the lobbies about all this.

It's not good at all. My eyes tell me that these places, whether downtown hotels or airport types, are still pretty empty, but managers tell me numbers like 10% to 40% with only a few special nights when they get up to over 50%. In the past, many were sold out most weekends or special days. I'd hear from the people at the desk that around 30-35% occupancy rates are needed to break even, but for "full service" hotels, those with restaurants inside, the number is closer to 50%.

I am not in the hotel business, mind you, so these numbers are not comprehensive. However, on the Statista website here I found the graph shown below. In this Trip Savvy article, the breakeven number is given as 37.5%, close to what I've been told.

Here's the big number I've heard, but it's one that I haven't been able to find good numbers on on the web yet: I've been told by a few people in the business that 60-something percent of hotels in the country may close for good!

Is there something about the service industry that makes it more prone to a government/media panic-induced collapse? In this case, of course, the fact that the big hysteria is about a contagious disease makes it obvious why the service industry has been beaten down. Even with some other big bad event (or supposed one) though, the service industry, specifically hospitality (food/beverages/lodging) is bound to take the biggest hit, as it provides services that we don't absolutely need. I suppose accounting, vehicle repair work, and those services that go along with production are left alone, as the production of goods is more important.

Then, there are the F.I.R.E. "industries". They are not particularly necessary, but yet, they have been left alone, or at least still making money (I read that "E" as standing for Education.) You know, I meant to mention this, so I'll stick it in yet another post.

This Service Economy that was supposed to well serve Americans after we shipped off all that manufacturing might has collapsed due to this Kung Flu Infotainment Panic-Fest. It's pretty much all we had left, so now, as the bored kids say, "what do we do??"

Adam Smith
Friday - January 1st 2021 1:04PM MST
PS: Happy new year Mr. Alarmist...

I am unfamiliar with the MIPAC. Is this an acronym or the mining and mineral services company? Microprocess Analysis Code?

What do you mean by MIPAC?

Thanks. I hope you have a great day.

The Alarmist
Friday - January 1st 2021 10:20AM MST

@Adam Smith, you are correct about the ‘E’.

How about the MIPAC? They’re doing just fine through all this.
Adam Smith
Thursday - December 31st 2020 10:57AM MST
PS: Happy new years eve...

I always thought F.I.R.E. = Finance, Insurance, Real Estate.(?) I'd imagine these "industries" have been unaffected mostly because of who largely owns them and in the case of insurance because it is perceived to be mandatory and is often a contractual obligation.

Maybe the restaurants could have stayed open if everyone had these...

I agree with Mr. Blanc about this lockdown lunacy. The fools behind this insanity should be held accountable. Panicfest is a crime against humanity.

Thursday - December 31st 2020 9:37AM MST
PS Restaurants come and restaurants go, but what’s happening now must be unprecedented. 1929 can’t have been as bad. It looks as if our favorite pizza place in the nearby railroad suburb with the trendy downtown is gone for good. Otherwise, the places that we frequent are hanging on, so far. I was in downtown Chicago in November. At mid-day. The streets should have been bustling; they were almost deserted. There were “Retail Space for Lease” signs everywhere. The Pret-a-Porter cafe, next to the library to which I was going, where I sometimes stopped for a sandwich and a caffeine jolt if I weren’t going to the Art Institute afterwards, was boarded up. Mme B says that she read that they’ve closed all their locations save one. It will take years for the city to recover, if it ever does. For the first time, a Detroit-like future for Chicago seems like a real possibility. The people behind this lockdown lunacy have a lot to answer for. Unfortunately, it’s unlikely that they will be held accountable.
Thursday - December 31st 2020 5:50AM MST
PS: Mr. Plissken, you know I meant to discuss tourism a bit, though I had a post or 2 a year ago in summer about this service sector. Everyone want to have tourism, as tourist are ready to spend their bread. Can we all just visit each other to keep the economy going?

Even if all your town has is that biggest ball of yarn, you can make an "industry" out of that. It's not like we have any textile mills that could use the ball of yarn.

Build it back, Commie-style, yep, that's what they want.
Snake Plissken
Wednesday - December 30th 2020 9:22PM MST
PS Uncanny. Just read at a comments thread about tourism in CPUSA (dems) controlled cities stating that people on the other side of the world can see what is happening and won't be visiting.
This will hurt the small "service" businesses but that is part of the Great Reset leap forward plan.
The neo-feudal globalist serf plantation goes live with the build it back better plan under Beijing Biden and Kommie-La.
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