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Image: Joshua Rodriguez on Unsplash
The Fed's response to the plague involved the PPP. As Rolling Stone wrote in July, even giant musical acts like the Eagles had their hands out. Bands that sell out arenas and stadiums in normal non-plague conditions are huge business. Other large businesses also benefited, seemingly unfairly, from the PPP.
Relationships with bankers and access to serious money is a perk to running any business with significant cash flow. These bankers know other bankers and can create financing vehicles like junk bonds and BBQ handshakes with promises to pay later.
This leaves the three piece band, you know, the one that has to pay to open for a larger act, in serious trouble. Almost 25% of small businesses have closed since the plague hit according to the Bloomberg article. This gap creates the opening for giant firms to swoop in and absorb the market. AMZN has doubled since mid March.
Like government regulations, big businesses have the capital to absorb these drastic changes to their industries. The little guy will continue to play his guitar but if he wants to have a live audience it will have to be after his shift in the warehouse and in front of lattes and weird green chairs.