KILLEEN, TX — With many having been out of work for months, and late of bills, funds are tight.
With many speculating on the effects on the economy amid pandemic protocols, Texas A&M Central Texas Interim Accounting, Finance & Economics Department Chair, Dr. Robert Tennant weights in.
“Instances where people are out protesting about not being able to go back to work, it’s not because they don’t care about anything, they’re just worried about providing for their families,” said Tennant, explaining those he believes have been and will be hardest hit are small businesses and families.
"Businesses are not prepared for that, and the same is true for most households, most households aren’t prepared to deal with a $400 expense at any moment in time” said Tennant.
Explaining most small businesses and families don't have a substantial emergency fund prepared for events such as the coronavirus.
Those with stocks, bonds and retirement funds, which includes most, are also being affected, but mainly those who are retired or were planning to retire soon.
“It could make those folks concerned about will their money last, The rest of their life? And those are really serious conditions, and concerns people are facing“ said Tennant.
Experts explain the enormous finical hit felt by many Americans could change the timeliness of many who had prepared to retire shortly.
Many are also pulling funds from stocks, bonds and retirement funds, which Tennant explains will ultimately lead to fewer funds for those all-important requirement days.
Tennant says families should be aware of where their money is being spent, and to think about rescheduling large ticket item purchase. He also explains small businesses, if they haven't already, should apply for the PPP loan.
“Whenever there’s a contraction in the economy, people start making choices on which things they can have, and when they’ve cut far enough to the bone it becomes very difficult to make further cuts“ said Tennant.
Tennant estimates the stock market will recover as stay at home orders are lifted.