The spread of the Delta variant has delayed office reopenings, disrupted the start of school and generally dashed hopes for a return to normal after Labor Day. But it has not pushed the U.S. economic recovery into reverse.
Now that recovery faces a new test: the removal of much of the aid that has helped keep households and businesses afloat for the past year and a half.
The Paycheck Protection Program, which distributed hundreds of billions of dollars in grants and loans to thousands of small businesses, concluded last spring. A federal eviction moratorium ended last month after the Supreme Court blocked the Biden administration’s last-minute effort to extend it. Most recently, an estimated 7.5 million people lost unemployment benefits when programs that expanded the system during the pandemic were allowed to lapse.
Next up: the Federal Reserve, which on Wednesday indicated it could start pulling back its stimulus efforts as early as November.
OpenTable, for example, have fallen less than 10 percent from their early-July peak. That is a far smaller decline than during the last Covid surge, last winter.
“It has moved down, but it’s not the same sort of decline,” Mr. Bryson said of the OpenTable data. “We’re living with it.”
$120 billion in monthly bond purchases — which have kept borrowing cheap and money flowing through the economy — but it will almost certainly keep interest rates near zero into next year. Millions of parents will continue to receive monthly checks through the end of the year because of the expanded child tax credit passed in March as part of President Biden’s $1.9 trillion aid package.
That bill, known as the American Rescue Plan, also provided $350 billion to state and local governments, $21.6 billion in rental aid and $10 billion in mortgage assistance, among other programs. But much has not been spent, said Wendy Edelberg, director of the Hamilton Project, an economic-policy arm of the Brookings Institution.
“Those delays are frustrating,” she said. “At the same time, what that also means is that support is going to continue having an effect over the next several quarters.”
Household savings could provide a buffer — if they last.
Economists, including officials in the Biden administration, say that as the economy heals, there will be a gradual “handoff” from government aid to the private sector. That transition could be eased by a record-setting pile of household savings, which could help prop up consumer spending as government aid wanes.
A lot of that money is held by richer, white-collar workers who held on to their jobs and saw their stock portfolios swell even as the pandemic constrained their spending. But many lower-income households have built up at least a small savings cushion during the pandemic because of stimulus checks, enhanced unemployment benefits and other aid, according to researchers at the JPMorgan Chase Institute.
“The good news is that people are going into the fall with some reserves, more reserves than normal,” said Fiona Greig, co-director of the institute. “That can give them some runway in which to look for a job.”
recent survey by Alignable, a social network for small business owners. Not all have had sales turn lower, said Eric Groves, the company’s chief executive. But the uncertainty is hitting at a crucial moment, heading into the holiday season.
“This is a time of year when business owners in the consumer sector in particular are trying to pull out their crystal ball,” he said. “Now is when they have to be purchasing inventory and doing all that planning.”
open a new location as part of a development project on the West Side of Manhattan.
Go big. If some aid ended up going to people or businesses that didn’t really need help, that was a reasonable trade-off for the benefit of getting money to the millions who did.
Today, the calculus is different. The impact of the pandemic is more tightly focused on a few industries and groups. At the same time, many businesses are having trouble getting workers and materials to meet existing demand. Traditional forms of stimulus that seek to stoke demand won’t help them. If automakers can’t get needed parts, for example, giving money to households won’t lead to more car sales — but it might lead to higher prices.
That puts policymakers in a tight spot. If they don’t get help to those who are struggling, it could cause individual hardship and weaken the recovery. But indiscriminate spending could worsen supply problems and lead to inflation. That calls for a more targeted approach, focusing on the specific groups and industries that need it most, said Nela Richardson, chief economist for ADP, the payroll processing firm.
“There are a lot of arrows in the quiver still, but you need them to go into the bull’s-eye now rather than just going all over,” Ms. Richardson said.
More than 1,500 workers for the video game maker Activision Blizzard walked out from their jobs this week. Thousands signed a letter rebuking their employer. And even as the chief executive apologized, current and former employees said they would not stop raising a ruckus.
Shay Stein, who used to work at Activision, said it was “heartbreaking.” Lisa Welch, a former vice president, said she felt “profound disappointment.” Others took to Twitter or waved signs outside one of the company’s offices on Wednesday to share their anger.
Activision, known for its hugely popular Call of Duty, World of Warcraft and StarCraft gaming franchises, has been thrown into an uproar over workplace behavior issues. The upheaval stems from an explosive lawsuit that California’s Department of Fair Employment and Housing filed on July 20, accusing the $65 billion company of fostering a “frat boy workplace culture” in which men joked about rape and women were routinely harassed and paid less than their male colleagues.
Activision publicly criticized the agency’s two-year investigation and allegations as “irresponsible behavior from unaccountable state bureaucrats.” But its dismissive tone angered employees, who called out the company for trying to sweep away what they said were heinous problems that had been ignored for too long.
Hollywood, restaurants and the media — the male-dominated video game sector has long stood out for its openly toxic behavior and lack of change. In 2014, feminist critics of the industry faced death threats in what became known as Gamergate. Executives at the gaming companies Riot Games and Ubisoft have also been accused of misconduct.
Now the actions at Activision may signal a new phase, where a critical mass of the industry’s own workers are indicating they will no longer tolerate such behavior.
“This could mean some real accountability for companies that aren’t taking care of their workers and are creating inequitable work environments where women and gender minorities are kept at the margins and abused,” said Carly Kocurek, an associate professor at the Illinois Institute of Technology who studies gender in gaming.
She said California’s lawsuit and the fallout at Activision were a “big deal” for an industry that had traditionally shrugged off claims of sexism and harassment. Other gaming companies are most likely watching the situation, she added, and considering whether they need to address their own cultures.
spared little detail. Many of the misconduct accusations focused on a division called Blizzard, which the company merged with through a deal with Vivendi Games in 2008.
The lawsuit accused Activision of being a “a breeding ground for harassment and discrimination against women.” Employees engaged in “cube crawls” in which they got drunk and acted inappropriately toward women at work cubicles, the lawsuit said.
In one case, a female employee died by suicide during a business trip because of the sexual relationship she had been having with her male supervisor, the lawsuit said. Before her death, male colleagues had shared an explicit photo of the woman, according to the lawsuit.
Employees reacted furiously. An open letter addressed to Activision’s leaders calling for them to take the accusations more seriously and “demonstrate compassion” for victims attracted more than 3,000 signatures from current and former employees by Wednesday. The company has nearly 10,000 employees.
“We no longer trust that our leaders will place employee safety above their own interests,” the letter said, calling Ms. Townsend’s remarks “unacceptable.”
a $155 million pay package that makes him one of the country’s highest-paid executives, added that the company would beef up the team that investigated reported misconduct, fire managers who were found to have impeded investigations and remove in-game content that had been flagged as inappropriate.
Employees said it was not enough.
“We will not return to silence; we will not be placated by the same processes that led us to this point,” organizers of the walkout said in a public statement. They declined to be identified out of fear of reprisal.
BOGNOR REGIS, England — Little has changed in the 40 years that Jean Sheppard has been calling numbers at Crown Bingo here in the heart of Bognor Regis, one of Britain’s oldest seaside resort towns, about 60 miles south of London. The regulars still line up before the doors open at 11 a.m., hoping to nab their upholstered seat of choice in a converted cinema built in the ’30s.
When the games begin, there are no distractions.
“We had an elderly lady here once whose family came to tell her that her husband had passed away,” Ms. Sheppard recalled recently. “And this woman said, ‘Well, there’s nothing I can do for him now,’ and kept right on playing.”
The other constant over the years is the decline of Bognor Regis. Like most of the country’s seaside resorts, the town’s heyday in the ’50s and ’60s is the stuff of dim memories. Bognor and its many rival destinations — Brighton, Hastings, Margate, Skegness, Blackpool and others — once thronged with summer travelers who packed the beaches, seafood shacks and amusement arcades in search of a good time and, for those lucky enough to encounter a cloudless sky, a tan.
Then in the 1970s came the rise of cheap jet travel and overseas package tours. For the same price as a trip here, a family could fly to the beaches of Spain, where blazing sunshine was essentially guaranteed. The resort towns of Britain went into an economic free fall from which they have never recovered.
“Pubs have shut down, theaters have shut down, lots of buildings were knocked down,” said Ms. Sheppard, speaking after her shift on Sunday evening. “There’s been talk about regeneration for years, but nobody seems to know how to do it.”
Now, the limitations imposed by the pandemic are succeeding where all else has failed — at least for the moment. Government-imposed air travel restrictions and warnings have curbed the national appetite for overseas trips. Brits are still allowed to fly to Spain, and elsewhere in Europe, but unless you’re heading to Gibraltar — where infection rates are low — you must quarantine for 10 days after returning home and pay for two Covid-19 tests.
This past week, the British health secretary, Matt Hancock, said the policy would soon be revisited and liberalized. That good news was offset by Chancellor Angela Merkel of Germany and Prime Minister Emmanuel Macron of France, who on Thursday urged all countries in the European Union to require British travelers to quarantine upon arrival.
So towns like Bognor Regis are getting a second look. There were more than 180 new players last week at Crown Bingo, said Jenny Barrett, the assistant manager. And for the first time in decades, hotels here are reporting occupancy rates well above 90 percent.
“This weekend we’re at 95 percent,” said André Gonçalves, a manager at the Beachcroft Hotel. “And our prices are up about 20 to 30 percent.”
The owner of the mini golf course right next to the beach-side promenade, Paul Tiernan, is relishing the payoff from a renovation during the height of the pandemic. He refurbished and cleaned the whole course, in part because during lockdown there was nothing else to do. Lately, on weekends there has been a waiting line that extends around the corner and down the street.
“British seasides are having a massive renaissance, everywhere you go,” he said. “Everyone is just filling their boots.”
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Mr. Tiernan sat in a chair near the edge of the first hole of his course, directly in the line of fire of any overzealous putters. He moved to Bognor Regis 50 years ago, as a child, which makes him just old enough to have glimpsed the last vestiges of the town’s halcyon days.
“There was a pier over there,” he said, pointing across the street. “Honest to God, it was beautiful. Right at the end there was a pavilion. And there was a theater there.”
Today, the pier is short and looks hazardous. Across a different street stands an empty lot with nothing but debris from a building that burned down four years ago under what Mr. Tiernan called dubious circumstances.
It’s all a long slide from the days when Bognor was prestigious enough to serve as a place for King George V, Queen Elizabeth’s grandfather, to convalesce after lung surgery in 1929. The royal connection was memorialized when “Regis,” Latin for “of the King,” was added to the town’s name. But its most famous link to the monarchy is the story — surely as false as it is amusing — that his last words were an alliterative, impolite put-down of Bognor, uttered after aides suggested that he’d soon be well enough to return. (Polite version: “I don’t want to go to Bognor.”)
James Joyce left behind kinder impressions after a stay here in 1923. “The weather is very fine and the country here restful,” he wrote to a patron. Joyce scholars believe he picked up the improbable name of the lead character of “Finnegans Wake,” Humphrey Chimpden Earwicker, from a nearby cemetery.
The flow of out-of-towners picked up when entrepreneur Billy Butlin opened his second Butlin’s Holiday Camp here in 1960, bringing his vision of a family vacation, filled with vigorous activities and all-inclusive buffets, to the south of the country. Today, the Butlin’s here is one of only three originals still in operation, and it is curiously walled off from the rest of town. A fence stands between the ocean and the Butlin’s campus, which features a gleaming, massive structure that looks like a circus tent from the future.
The logic of a beachside holiday camp with little access to the beach, designed around indoor amusements, seems baffling. Until it starts raining, which it did often last weekend. Bognor boasts that it’s the sunniest place in the United Kingdom, a title claimed by other towns as well. Even when it’s sunny, though, the beach here is not exactly inviting. It’s made of small stones, which are comfortable to lay atop only if you bring a futon.
The water rarely gets much above 60 degrees, a temperature described by the National Center for Cold Water Safety as “very dangerous.”
“We all have wet suits,” said Sara Poffenberger, a Brit who was toweling off with her son and grandson. “But lots of British people will swim without wet suits and tell you the water is boiling.”
The beaches here helped Bognor Regis earn the title of worst U.K. seaside resort in a 2019 survey of 3,000 holidaymakers. Bognor and the fellow bottom dweller Clacton-on-Sea received low ratings for their “attractions, scenery, peace and quiet and value for the money,” the publication found.
Reviews like this explain why even optimists believe Bognor’s boomlet is unlikely to last. Business owners here understand that they are banking the upsides of what could most charitably be described as exceptional circumstances. Someday soon, normal will return.
“Next year, every man and his dog will go abroad,” Mr. Tiernan said, sitting at his mini golf course. “But next year is next year, so I’m enjoying the moment.”
KISUMU, Kenya — Before Kenya’s president and other leaders arrived in late May to mark a major public holiday, health officials in Kisumu on Lake Victoria saw disaster brewing. Coronavirus infections were spiking, hospital isolation units were filling up and the highly contagious Delta variant had been found in Kenya for the first time — in Kisumu County.
Dr. Boaz Otieno Nyunya, the county executive for health and sanitation, said he and other health specialists argued and pleaded for the politicians to hold a virtual celebration and skip the mass, in-person events that can supercharge an outbreak. Just weeks earlier, huge political rallies had helped fuel the catastrophic Covid-19 wave in India, where the Delta variant first emerged and became dominant.
Their objections were waved away, the health officials said. President Uhuru Kenyatta, Deputy President William Ruto, the former prime minister Raila Odinga and others descended on Kisumu, drawing large and mostly unmasked crowds who thronged the streets to watch their slow-moving motorcades through the city and gathered to hear them at marketplaces and parking lots.
turning away patients for lack of beds or oxygen, health officials say they fear a wave like the one that ripped through India in April and May could be looming over Kisumu.
“The India example is not lost to us,” Dr. Nyunya said.
Though data on infections and deaths is spotty, more than 23 percent of the people tested for the virus in Kisumu last week were positive — more than double the national rate. Kenya’s overall positivity rate is similar to that of the United States when the pandemic peaked there in January. But the Delta variant was still rare then, the American health system is far more robust than Kenya’s and the U.S. government was ramping up vaccination on a grand scale.
All of Africa is vulnerable, as the latest wave of the pandemic sweeps the continent, driven in part by more transmissible variants. Fewer than 1 percent of Africa’s people have been even partially vaccinated, by far the lowest rate for any continent.
“I think the greatest risk in Africa is to look at what happened in Italy earlier on and what happened in India and start thinking we are safe — to say it’s very far away from us and that we may not go the same way,” said Dr. Mark Nanyingi, an infectious disease epidemiologist at the University of Liverpool in Britain. He called the surge in western Kenya a “storm on the horizon.”
said. But experts say the true scale of the pandemic far exceeds reported figures in Africa, where testing and tracing remain a challenge for many countries, and many nations do not collect mortality data.
To forestall the ongoing crisis, Kenya’s Ministry of Health last week imposed a restriction on gatherings and extended a dusk-to-dawn curfew in Kisumu and more than a dozen surrounding counties. But the measures were too late for Dr. Nyunya, who said that thinking back on the deliberations —which involved the county governor Peter Anyang’ Nyong’o, a former national health minister — over the celebrations last month, “It makes you feel impotent.”
record cases and deaths, President Yoweri Museveni has imposed a strict 42-day lockdown. Just weeks ago, Rwanda hosted the Basketball Africa League and other big sporting events, raising the possibility for a full reopening. But after a spike in cases, the government introduced new lockdown measures on Monday.
The Democratic Republic of Congo — where the virus has claimed the lives of more than 5 percent of lawmakers — is grappling with a third wave as it falters in rolling out vaccines. South Africa, the continent’s worst-hit nation, has reported new infections doubling in just two weeks’ time, with the sharpest increases in major urban centers. Tunisia, where hospitals are full and oxygen supplies are low, is enduring a fourth wave.
“New, higher transmitting variants create a precarious situation in many countries that have weak health systems,” said Dr. Ngozi Erondu, a senior health scholar at the O’Neill Institute at Georgetown University.
The W.H.O. attributes the surge in Africa to lack of vaccination, insufficient adherence to precautionary measures like mask wearing and social distancing and the Delta and other variants.
lament a lack of protective gear and health insurance.
“We are buying our own gloves and masks,” said Dr. Onyango Ndong’a, chairman of the local chapter of the Kenya Medical Practitioners, Pharmacists and Dentists Union. “We are covering for government inadequacies. We are tired now. We are stretched.”
For now, families who have lost loved ones are adjusting to a new reality.
Edward Onditi, 33, lost both his brother and his mother to Covid-19 this month. He said he left Nairobi to come and assist his family after his brother, Herbert, whom he regarded as a best friend and mentor, fell ill.
For weeks, the family transported Herbert, 43, between three hospitals in two counties — a distance of 70 miles in total — so that he could get high-flow oxygen. On the day before Herbert died, Edward had fish, his brother’s favorite meal, delivered to his isolation ward and promised to take him on a holiday once he was out.
“I’m so touched,” his brother said in a text message sent on June 2.
Barely 12 hours later, he was gone.
A few days later, their mother, Naomi, who had been ailing, succumbed to complications from Covid-19, too.
“It’s one of the toughest moments of my life,” Mr. Onditi said on a recent afternoon, his eyes welling with tears. “Things are just not working. They are not adding up.”
KIBBUTZ NIR DAVID, Israel — A whimsical chain of inflatable rafts tethered together by a flimsy rope floated along the Asi, a gentle stream that runs for a mile through a sunbaked plain in northern Israel.
The boats were packed with residents of the area, their children and day trippers from farther afield, but this was no picnic, even though it was a holiday. The goal of this unarmed armada was nothing less than reclaiming the small river.
“This is a strategic takeover!” the leader of the ragtag crew, Nati Vaknin, shouted through a bullhorn as he waded ahead of the group.
The flotilla’s destination was a forbidden paradise: an exquisite, aquamarine stretch of the stream that runs through, and that has effectively been monopolized by, Kibbutz Nir David, a communal farm founded by early Zionist pioneers, Ashkenazi Jews from Europe who historically formed the core of the Israeli elite.
Free the Asi campaign, a group fighting for public access to a cherished beauty spot and against perceived privilege. On the other is a kibbutz eager to maintain its hard-earned assets and tranquil lifestyle. The dispute has landed in court, awaiting resolution; in late May, the state of Israel weighed in, backing the public’s right to access the stream through the kibbutz.
But underlying the battle are much greater tensions that extend across Israel.
The Asi dispute pits advantaged scions of the country’s socialist founders against a younger generation from a traditionally marginalized group. And it has resonated across Israel as a distillation of the identity politics and divisions that deepened under the long prime ministership of Benjamin Netanyahu.
Israel’s fourth in two years, 93.5 percent of the vote in Beit Shean, with a population of about 18,000, went to right-wing or religious parties mostly aligned with Mr. Netanyahu, then the prime minister. Three miles away in Nir David, a community of