The provincial government will release a framework early next week for how it plans to reopen Ontario’s economy, Premier Doug Ford said Friday.
During his daily news briefing on the COVID-19 crisis, Ford said community spread of the virus is moving in the right direction. But he also cautioned that any plans to reopen would come with the caveat of putting the health and safety of Ontario residents first.
“[The plan] will provide a gradual and measured approach for opening up,” Ford said.
Health Minister Christine Elliott also said the province will begin scheduling elective surgeries again “as soon as we’re able.”
“This is something I know is extremely anxiety-provoking for many people,” she said.
But, she noted, Ontario is still dealing with case counts of over 500 on a daily basis, and so officials have to ensure the province is past its peak of transmission to ensure hospital capacity is adequate.
Meanwhile, the military is now intervening at long-term care and retirement homes across the province, where the Ontario government reported a jump of 57 deaths on Friday.
There are currently 131 outbreaks in homes across the province, with 573 deaths total. Some 2,287 residents and 1,089 staff have also tested positive.
Ford had asked the federal government for military backup at five of Ontario’s hardest-hit nursing homes:
- Orchard Villa, 40 deaths, 104 resident cases, 59 staff cases.
- Eatonville Care Centre, 37 deaths, 143 cases.
- Altamont Community Care Centre, 28 resident deaths and one staff member, 58 resident cases, five staff cases.
- Hawthorne Place, nine deaths, 47 cases.
- Holland Christian Homes’ Grace Manor, two deaths, 49 resident cases, 21 staff cases.
Military support may be redeployed to other sites as required, said provincial spokesperson Ivana Yelich in a statement issued Friday.
“Our top priority is ensuring the staff at these long-term care homes can focus on providing care and have the resources they need to combat the spread of this virus,” the statement read.
Dr. Barbara Yaffe, the province’s associate chief medical officer of health, said at a news conference Friday afternoon that the province is “extremely concerned” about the numbers seen in long-term care and congregate settings, but “cautiously optimistic” about community spread.
Officials believe that numbers in the broader community have peaked, but, “we won’t for sure know when we’re at the peak until we’re … on the way down,” she said.
Still, Yaffe said, it seems as if numbers have “plateaued” — but she could not say how long numbers would crest along that line.
“It could actually be weeks,” she said. “We don’t know.”
Province reports 640 new cases
Ontario also reported a record-breaking 640 new cases of COVID-19 on Friday, bringing the total number of cases in the province since the outbreak began to 13,519.
The provincial government is reporting 763 deaths, though CBC News has counted 814 deaths according to data from local health units. Some 7,087 people have recovered.
The province says it completed 12,295 tests within the 24 hours since its last update, while 5,414 are currently under investigation.
Meanwhile, hospitalizations from the virus rose to 910 from 877.
The number of patients in intensive care and on ventilators also both increased, bringing the totals to 243 and 193, respectively.
These updated numbers come one day after Ford announced that his mother-in-law, who is a resident of a Toronto long-term care home ravaged by COVID-19, has tested positive for the disease.
His mother-in-law is a resident at the West Park Long-Term Care home, where at least 13 people had died due to COVID-19 as of Thursday.
Province announces small business rent relief
Ford also announced Friday that the province is partnering with the federal government to provide relief for landlords and small businesses affected by the pandemic.
The province says it is committing $241 million through the new Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA) to help provide relief.
According to a news release issued Friday, the program will provide forgivable loans to eligible commercial property owners experiencing rent shortfalls because their small business tenants have been impacted by the pandemic.
To receive the loan, property owners would be required to reduce the rental costs of small business tenants for April to June 2020 by at least 75 per cent and commit to a moratorium on evictions for three months, the province says.
“The vast majority of Ontario’s small businesses and landlords are struggling during this extraordinary public health emergency,” Ford said in a statement. “That’s why we are doing everything we can to support them through these tough economic times, so they can hit the ground running when we are in a position to open up the provincial economy.”
New cruise ship restrictions will mean big hit to B.C. economy, industry says – CBC.ca
There will be no cruise season in Canada this year, an industry representative says, after the federal transport minister announced new restrictions on vessels’ ability to sail in Canadian waters.
On Friday, federal Transportation Minister Marc Garneau announced further limits on vessels and extended restrictions until October as a measure to limit the spread of COVID-19.
“It’s obviously disappointing news,” said Barry Penner, legal advisor to Cruise Lines International Association — Northwest and Canada. “There won’t be a cruise season in Canada, at all.”
“This announcement will be acutely felt in coastal communities, small towns, bigger centres, everywhere from Newfoundland, Nova Scotia, New Brunswick, Prince Edward Island, Quebec, and especially British Columbia.”
Penner said the cruise ship industry contributed over $4.1 billion to the Canadian economy in 2018 and led to 29,000 jobs. Over $2.3 billion of that economic activity and over 15,000 of those jobs are in B.C.
The employment figures include spin-off jobs in businesses like hotels, restaurants and taxis serving cruise ship customers on shore, as well as suppliers producing goods for vessels, Penner said.
310 Vancouver port calls cancelled
B.C. health officials have already said cruise ships will be allowed to stop for refuelling in the province’s ports but passengers will not be permitted to disembark.
Dayna Miller, director of global partnerships with Tourism Vancouver, said her organization understands the decision by the federal government.
“I think we were not entirely surprised,” Miller said, especially with large gatherings on hold in B.C.
However, she said, 310 cruise ship calls were expected in Vancouver this season, which would have brought about 1.2 million visitors to the city. Each call, she said, generates about $3 million in economic activity.
“It’s a vital industry as a whole,” she said.
The coronavirus pandemic has been devastating to the cruise industry globally.
Experts have said cruise ships, with hundreds or thousands of people in close proximity, present virus transmission risks.
There have been reports that even once cruises are given the OK to begin operations again, fewer customers will want to set sail over health fears. Some have speculated the pandemic will mean the end for at least some cruise lines.
In February, a high-profile outbreak on the cruise ship Diamond Princess led to hundreds of passengers testing positive for the disease.
“I think everybody’s been learning, as fast as they can, around the world,” Penner said.
Penner said the pandemic has been a “vexing” problem for governments and health authorities and the cruise industry is working with both to find best practices to contain viral risks.
But cruise lines aren’t alone, he said. Airlines and movie theatres face similar issues, for instance.
His industry is making some changes to increase consumer confidence, such as making cancellations more flexible for travellers booking in 2021.
S&P US chief economist: How we can add $5.7 trillion to the US economy – CNN
Restarting The American Economy: The Most Essential Factors – Forbes
When governors and the federal government made the decision to close “non-essential” businesses and issue shelter-at-home orders to slow the spread of COVID-19, they did so without the benefit of a historical precedent. We are only now beginning to understand some of the ramifications of this drastic action. As the U.S. moves to unshackle its economy, millions of workers sit nervously waiting for a call from their employer. Though some workers have returned or hired on with companies that have thrived during this pandemic, others may never get ‘the call’ as companies restructure. You see, a crisis provides an opportunity (and motivation) for companies to reevaluate their business model in search of ways to cut expenses and increase profits. This is because success depends on how well a company can meet the needs of its consumers (revenue) and how well it manages its expenses. The difference between revenue and expenses is profit, which is the driving force behind the private sector. Profit is the lifeblood of every business and it is this lifeblood that is under attack.
How quickly will the U.S. economy return to normal? The answer is ‘it depends.’ It depends on how fast the unemployment rate falls. It depends on how quickly the consumer returns to their pre-COVID level of spending. It depends on the path of the virus. In essence, it depends on a myriad of variables. Let’s begin with unemployment as this will determine the level of economic growth over the next 12 to 18 months.
The official number of unemployed workers is now slightly over 41 million. This is substantially higher than the 5.75 million unemployed at the end of 2019. The current number of unemployed workers represents approximately 26% of the ‘pre-COVID-19’ work force. The unemployment rate hit 14.7% in April, the highest figure since the 24.9% rate during the Great Depression. According to some sources, unemployment is expected to reach 25.2% by the end of this year. Unlike the depression, however, the cause of this downturn is known, and the policy response has been more on point. Even so, can the U.S. economy return to normal with so many workers on the sidelines?
Slower Return to Normal?
Roughly 70% of the U.S. economic engine comes from consumer spending. Thus, when the consumer is actively engaged, the economy tends to prosper. Remove an additional 35 million consumers from the work force and, well, the economy suffers. More importantly, debt plays a vital role in economic growth. When consumers borrow, they spend more, which leads to growth. When you look at the level of total credit issued from all commercial banks since 1973, the average increase from one month to the next was 0.6%. In March and April of this year, the increase was 2.8% and 3.3% respectively. However, this was due to a 25% rise in commercial and industrial lending, much of which is attributable to the Paycheck Protection Program.
What about the largest driver of economic growth? Loans to consumers, which averaged a 0.5% increase from month to month since 1973, fell 3.5% in April. This is the largest monthly decline on record. This reduction in consumer lending has led to weaker consumer spending and slower economic growth. In fact, from March 1 to the end of April, consumer spending – as measured by personal consumption expenditures, fell nearly 20%. If you reduce the volume of loans to consumers – again, the largest contributor to GDP consumer spending falls and the economy slows. Therefore, we must find a way to help the consumer regain what they lost from the shutdown.
What else will affect the return to normal? It starts with demand, which, due to the shutdown, has plummeted. This is why the federal government, the Treasury, and the Fed embarked on a massive stimulus program to put money into the hands of Americans. However, since a one-time payment of $1,200 per individual and $500 per dependent won’t go very far, the federal government added a $600 per month bump in unemployment benefits.
The segment that benefits most from this are workers at the lower end of the income scale. Assuming these unemployed workers are receiving a total benefit of $800 per week ($200 state; $600 fed), this equates to over $41,000 per year. Working for $15 per hour, 40 hours a week, 52 weeks per year, yields $31,200 in gross income. Therefore, where is the incentive to return to a lower paying job? Unless extended, the $600 federal stipend will end July 30. This could lead to a flood of workers seeking reemployment. But how many of these jobs will be filled by then?
Safety concerns are key to consumer demand, which is key to the reemployment of the unemployed. How fast will the consumer reengage? Will there be a second wave of the virus? Will the virus mutate, hindering efforts to develop a vaccine? Regardless, some businesses will permanently close, others will reopen more slowly than expected, and many will look vastly different. Technology will assist those who continue working from home and replace jobs in some industries.
The ‘return to normal’ boils down to how well businesses adapt to this rapidly changing environment and become profitable again. A prosperous business community is necessary for a plentiful job market, which is critical for a thriving economy. If businesses fail to thrive, workers will have fewer employment options and unemployment could remain elevated for longer than necessary. Thus, saving our businesses may be the most important task of all, outside of the virus that is.
Report: NBA owners expected to approve Orlando restart with 20-22 teams – theScore
Nova Scotia reports no new cases of COVID-19 for first time since March – Toronto Star
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