CLEVELAND, Ohio – Ohio Gov. Mike DeWine’s stay-at-home order puts even more pressure on an already crippled economy and increases the need for a federal response to ease the minds of worried business owners, two local experts said.
David Clingingsmith, an associate professor of economics at Case Western Reserve University, said his initial impression of the governor’s order is that the list of essential businesses that can stay open “seems kind of broad” and that the new rules don’t seem much more stringent than the existing recommendations.
For example, suppliers of essential businesses are included in the list, which means stores such as Best Buy that sell to retail customers and perhaps businesses, too, may be allowed to operate.
Clingingsmith said the state may end up providing more clarification about essential businesses going forward, but doing so could be a difficult task.
He agrees, however, with the governor’s action to stop the spread of the virus. He hopes the federal government is primed to step in “and put us on a path to sort of recovering quickly.”
Scott Shane, Mixon professor of entrepreneurial studies at Case Western Reserve University, said he thinks DeWine made the right call but he’s concerned that the lack of a federal response is going to make some businesses start to panic and perhaps lay off workers.
Shane said he doesn’t think DeWine made the order to provide for greater enforcement powers, but to impress upon the public that the situation is getting worse not better.
“What we want to have happen is we have to take a temporary pause,” Shane said, but with assurance from the federal government that it will help companies weather the tough time.
The governor’s order continues to allow a long list of businesses to remain open, including grocery stores, pharmacies, banks, gas stations, hardware stores, pet stores, restaurants (for carry-out and delivery only), building trades, educational institutions (although schools are closed to students), laundromats, airlines, package delivery and many, many more.
As for what percentage of the Ohio economy will be shut down when the order takes effect, “it’s hard for me to say,” Clingingsmith said.
What’s certain, he said, is that placing limitations on the economy causes of a lot of strain on people and will lead to many layoffs.
The stay-at-home order will remain in place until at least April 6, but Clingingsmith said he wouldn’t be surprised if that’s extended. China had to be very restrictive for a long time to get the coronavirus under control, he said, and he doesn’t think Ohio is in any better position.
The National Federation of Independent Businesses issued a statement of support shortly after DeWine’s announced the order.
“While this order will no doubt impact many small businesses across Ohio, our state’s entrepreneurs have been and will continue to provide critical services during this on-going crisis," Roger Geiger, Ohio executive director of the NFIB, said in a prepared statement. “I am certain that they will do their part and step up to see us through these unprecedented times.”
Geiger also pointed out the need for government help.
“Small business owners will be looking to their local, state, and federal leaders to continue to provide the necessary recovery tools such as economic stimulus, revenue, and leniency when it comes to taxes, credit, and regulations,” Geiger stated. “Historically it is small business that have led us through an economic recovery, and I am confident they will do so again.”