Our Perspective: Michigan Becoming a Modern Economy Leader

By Americans for a Modern Economy

June 3, 2020

Most leading economic forecasters, including the Chairman of the Federal Reserve, Jerome Powell, are predicting that a full economic recovery from the impacts of the COVID-19 pandemic could take many years – perhaps even until the end of the decade. But whether it is a decade or not, almost everyone agrees that a return to “normal” will be a long time coming. Many in the retail, hospitality and tourism sectors will not make it that long and over the next few years, it is clear we will see large numbers of employers go out of business, and as a result, countless workers lose their jobs. Policymakers can’t remedy all of that but there is a great deal they can do to help. If the pandemic has reminded us of anything, it's the role that small, Main Street businesses play not only in our economy, but our communities. Helping those businesses survive should, and in most cases appears to be, a top priority for elected officials.

One existing challenge for traditional, legacy businesses long before the pandemic was the challenge of adapting to a modern, online-based economy where consumers were already becoming increasingly dependent on goods and services coming directly to their door steps. Bricks and mortar stores, whether they be restaurants, merchants or convenience stores, were already evolving their business models to compete in an emerging delivery-based economy. The COVID-19 outbreak just sped up exponentially, a process that was already underway.

The Michigan legislature, acting in bi-partisan fashion, is joining many other bipartisan efforts in state assemblies across the country, and considering measures that would help those businesses survive the economic turmoil facing employers by modernizing rules and regulations around food and beverage delivery and other “off-premise" sales of alcohol and other products. Assisting the transition of legacy businesses to compete in the new economy will be critical to the survival of countless small business and community anchors like family-owned restaurants.

Americans for a Modern Economy applauds the state of Michigan for engaging in this conversation and working to help small businesses remain viable going forward.