America Will Come Out of This Stronger Than Ever. It's Done It Before
This week, residents of San Antonio, Texas, home to U.S. Global Investors, were ordered to work from home, with some exceptions. Like countless people in other parts of the country and world, our team has had to quickly and nimbly adapt to a new normal, and to be innovative in the face of new challenges.
But even after the threat of infection has subsided and social distancing has become only a memory, some things may never be the same as they were in the days before the pandemic. I’m talking not just about U.S. Global or even personal finance or investing, by the way, but nearly every industry on earth. I believe things will end up looking very different in a number of ways––for companies, for workers and for consumers.
I also believe that the U.S. economy will come roaring back stronger than ever. Because if there’s one thing America and the free markets have shown, it’s that they’re resilient and adaptive to change. The same can be said about consumers.
I’ll use the entertainment industry as an example. Last weekend, and for the first time in roughly 100 years of motion picture history, box office revenue hit $0. Nearly every cinema in the U.S. is closed, meaning no revenue is coming in.
But instead of waiting out the quarantine––however long that may be––production companies and distributors have quickly turned to streaming platforms. You may have noticed lately, after hopping onto Amazon Prime or Hulu, that brand new, first run Hollywood movies have been made available to watch right in the comfort of your home (for a premium, of course).
As for the theater owners, they will assuredly need to ask themselves whether moviegoers will return for a Friday night showing in the same droves as before, and what changes will need to be made to the services they offer to get their business back.
Rethinking Consumer Behavior
Indeed, Disney just last week said that it believes the outbreak could forever alter consumer behavior in “fundamental ways” that will disrupt its business going for years to come, according to a report by Reuters.
It’s not just movies and theme parks, of course. Retail in general and luxury brands in particular will need to adapt to the unprecedented disruption caused by the pandemic.