The coronavirus is unlike anything we have ever seen before.
So, there’s no question that the economic impact of the restrictions put in place by mayors, governors, and the federal government are absolutely devastating to tens of millions of people’s economic prospects. This is why many of us on the Right, even those of us such as myself who are wary of government intervention in the economy, recognized that something had to be done to prevent the economic fallout from the coronavirus doing long-term damage to our economy and destroying the well-being of individuals and families across the country.
The problem, of course, is that government intervention, even when well-planned, is a messy affair. Inevitably, the government picks winners and losers, and often those distinctions seem arbitrary and capricious. (And that’s when government actually takes the time to think through its intervention.)
In the case of the CARES Act, the $2.2 trillion coronavirus relief legislation was rushed through at the equivalent of legislative warp speed, with members in both parties desperate to look like they were doing something to help.
Indeed, Rep. Thomas Massie, one of the most stalwart defenders of the Constitution in either chamber of Congress, was vilified by almost everyone across the political spectrum for having the temerity to ask that Congress actually have a quorum before passing one of the largest and most important pieces of legislation in history. (This is required by the Constitution). Sadly, he was ignored.
Unsurprisingly, the legislative rush job has resulted in some of the most hardest-hit businesses being left out and ineligible for assistance.
Health and fitness clubs, just like restaurants and bars, were among the very first businesses mandated to close in response to the coronavirus. And unlike restaurants, many of which are still able to provide pickup or delivery service, health and fitness clubs have been almost completely shuttered since the start of this pandemic. Health and fitness clubs serve 74 million consumers, generate $32.3 billion in annual revenue, and employ over 800,000 people, according to industry figures.
You would think that one of the hardest-hit sectors, the fitness industry, would be among those most eligible for assistance during this crisis. But that would make the mistake of assuming basic competence on behalf of the government.
The CARES package provides for SBA loans to businesses with 500 or fewer employees, or for sector 72 businesses (accommodations and food services industry) with fewer than 500 employees per location. The language of the CARES Act, inexplicably, treats health and fitness clubs differently than other service industries and has left a large segment of the businesses, which may be larger than 500 employees counting multiple locations, unable to apply for critical assistance to help keep employees paid and help keep businesses afloat.
MarketWatch explains:
This isn’t the only industry being inexplicably left out in the cold by the CARES Act, but it is certainly one of the most egregious examples.
Moving forward, Congress must put as high a premium on getting it right as they do on acting swiftly. We all understand the unprecedented nature of these times, and as a conservative, I understand the pitfalls of any government intervention in our economy, but Congress and the White House alike simply must do better.
If we are going to strap the next generation with trillions and trillions in new debt, we should at least make sure that the money gets to the businesses that need it.
Christopher Barron (@ChrisRBarron) is the president of Right Turn Strategies and a contributor to the Washington Examiner’s Beltway Confidential blog.
