According to data compiled by Gary Wagner, Acadiana Business Economist at the University of Louisiana at Lafayette, in his quarterly Louisiana Economic Activity Forecast, “Louisiana’s (GDP) contraction of 6.6% was one of the sharpest drops in the nation. Only Michigan, New York, Nevada, and Hawaii experienced larger downturns in economic activity.”
Unemployment has skyrocketed. Additionally, a $1 billion budget shortfall due to coronavirus made it extremely difficult for the authorities to prioritize things. In a situation marred by confusion and uncertainties, prioritizing business to boost the economy while tackling macroeconomic variables is Louisiana's best choice.
Projections regarding business and the economy already lack promise. In a turbulent situation with an ambiguous future, ignoring business and development is a poor decision. A better future for the state cannot be ensured if the businesses are not prioritized.
In Louisiana, unemployment has surged with more than 310,000 current claims, with a further increase also predicted. A lack of action will unleash havoc on the entire state of Louisiana. "It's time we start coming up with ideas to bring our industry back, and this is one small step," Stuart Bishop.
Louisiana is already well behind the average national growth in terms of economic growth. It also has a low percentage of jobs in the high-tech industry. With this and the damage caused by the coronavirus in mind, investing in businesses is a pragmatic decision. Spending on business in Louisiana will ultimately bring many benefits that will compensate for the adverse impact of the virus on businesses.
Support for the tourism industry is also much-needed. Being one of the more notable economic activities of the state, tourism and various festivals generated substantial business gains. Due to the pandemic, however, the state lost anticipated revenue, and massive business pitfalls were witnessed.
Many restaurants and bars were forced to shut down temporarily, culminating in losses of jobs and revenue. The previous year, Louisiana welcomed 53.2 million visitors who spent $18.9 billion and raised $1.92 billion in revenue for state and local taxes.
“The announcement of record-breaking tourism numbers comes with mixed emotions during this pandemic that has closed the doors to so many of our businesses. I’ve heard people say that recovering the tourism industry to its 2019 level as a result of COVID-19 will be virtually impossible,” said Lieutenant Governor Billy Nungesser.
Small businesses employ nearly 50% of America's laborers. Due to the Coronavirus Pandemic, almost 43% of businesses were closed temporarily, causing massive business loss and unemployment. An 11% drop in the jobs in Louisiana has been observed due to COVID-19, a mark nearly double the 6% drop after Hurricane Katrina in 2005.
It’s high time we invest more money and energy in businesses. A stable and flourishing business sector will make Louisiana great again and resilient against future challenges.
