Dr. Trevor Harrison presenting to SACPA via video (Screenshot from Southern Alberta Council on Public Affairs on YouTube)

By Justin Goulet

U of L professor speaks on COVID-19’s impact on small businesses at SACPA

Jun 4, 2020 | 11:46 AM

LETHBRIDGE, AB – The Southern Alberta Council on Public Affairs (SACPA) hosted Dr. Trevor Harrison on Thursday morning.

Harrison is a professor of sociology at the University of Lethbridge and director of the Parkland Institute.

The Edmonton-born professor spoke on some of the potential social, political and economic impacts of the COVID-19 pandemic.

He noted some effects the economic relaunch has had on some smaller businesses.

“A business owner can open his or her door, but what if no one comes in to buy? This is what I call the ‘field of nightmares’ scenario,” Harrison said.

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“The problem again is not a lack of demand as in 2008 [economic crash]. The problem is an excess of fear that might be compounded if the economy opens up too soon.”

Harrison referenced the threat of a second wave of the pandemic.

“Imagine the heightened impact on the economy if a second shutdown is ordered. Even worse, imagine the impact on the psychology of consumers if the pandemic returns stronger than ever,” he said.

He cited a recent article in Maclean’s Magazine, saying governments have to tackle every outbreak of COVID-19 “quickly, completely and efficiently” if the economy is to be resuscitated successfully.

“In Alberta for example, had the seniors’ homes and the meat packing plants been shut down immediately, the number of cases in the province would have been miniscule,” he said.

“Consider the number of cases that are actually related to a few meat packing plants and a few seniors’ homes. Take those out of the equation and our numbers would be actually fairly low, but we didn’t respond quickly enough.”

He touched on the effects of infections caused by community transmission.

“Had it [community spread] been dealt with, it would have been halted and many of the fears that people have to engage in the economy would have [also] been dealt with,” he said.

“Some small and medium-sized companies are for sure going to not survive and will in fact, as we’ve already seen, go bankrupt.”

He said businesses such as airlines, Airbnb’s and cruise ships will most likely suffer in the long-term, in addition to the problems they’re facing amid the pandemic.

However, on the flip side, Harrison said there are some sectors doing well.

“Online sales for gym equipment, home theatres seem to be doing really well. People can’t go out to actual theatres, so they’re buying equipment like crazy,” he said.

“My prediction is that much of the gym equipment that will be bought in the next little while, in another few months or another year will be for sale at garage sales everywhere as people decide they didn’t actually use it anyway.”

Harrison’s full presentation at SACPA can be viewed below.