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Governor Beshear tightens restrictions, halts restaurant industry re-opening

Published: Jul. 29, 2020 at 6:57 AM EDT
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LEXINGTON, Ky. (WKYT) - Governor Andy Beshear announced yesterday the closing of all bars effective today and restaurants must reduce the capacity of inside dining to 25%, he also suggested schools in Kentucky delay the start of in-person learning until at least the 3rd week of August. To look at the economic impact of those decisions, Josh Smith, an independent retirement planning advisor of Strategic Wealth Designers joined WKYT. Smith says the decision to pull back is a crushing blow to the food and beverage industry.

“Forcing the businesses to reverse course or close entirely after just getting a little life back is crushing to the business owners and their employees,” Smith says. “The cases have risen some in the state of Kentucky but not near the level of Ohio or Indiana our neighbors who have not put in place these tight restrictions. As of yesterday, 90.8% of all deaths in Kentucky are from people aged 60 and over. As Congress considers another aid package, it makes it difficult to accurately create a stimulus proposal as some Governors pull back the opening in their states.”

The decrease in the death rate has been attributed to the much larger number of young people contracting the virus. As of yesterday, July 27, 2020, 96.8% of all COVID-19 related deaths in the state of Kentucky were people aged 50 and over. Smith says it’s hard to say when but at some point the economic impact will reach a boiling point for the United States.

“We don’t want to see anyone die from this virus. We also don’t want to see anyone take their life from financial ruin or a mental health breakdown. We have over 50 million unemployment claims since the beginning of the shutdowns from the coronavirus and if we go back into another full lockdown there won’t be enough bailout money to pull many small businesses from their certain death,” Smith says.

Monday’s announcement also encouraged schools to delay in-person learning until at least the 3rd week of August. In the next week, many colleges are having to make decisions on their own campuses and their sports programs. Smith says to expect to see many districts open with all digital classrooms for the beginning of the year and for many major Division 1 programs to shelve their football seasons (and subsequently all other sports) all together this fall.

“As the Governor said, it’s best if kids can learn in a classroom from a professional teacher and not their parents. Unfortunately, for a lot of reasons it looks very likely that not just until the 3rd week of August but well into the school year, many districts will not be opening their buildings to students,” Smith says. “This obviously creates great difficulty for parents who are employed as well as kids getting an education in a classroom setting. It likely doesn’t stop there, colleges have some tough decisions to make very soon about their campuses and how they navigate having college students back in person as well. The upcoming school year is going to be a trying time.”

To learn more about this financial news topic visit https://WKYT.com/MoneyMatters and if you have a financial planning question for Josh, send an email to Info@SWDgroup.com

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