- The US economy will struggle until at least the end of the fall and will not fully recover at the start of next year, Cisco venture capitalist and former CEO John Chambers told Marketwatch on Tuesday.
- “Things will get worse before they get better,” said Chambers. “The next quarter is going to be ugly. “
- Chambers said the new coronavirus pandemic is hammering the US economy, the healthcare system and global supply chains, and posing an existential threat to many businesses.
- “It is time to reinvent or be left behind,” he said.
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The US economy will be stuck in the doldrums until at least the end of the fall and will not experience a full recovery until the start of next year, Cisco venture capitalist and former Cisco chief told Marketwatch on Tuesday , John Chambers.
“Things will get worse before they get better,” said Chambers – who oversaw a nearly 40-fold increase in the tech titan’s annual revenue to $ 40 billion while serving as CEO between 1995 and 2015 – during of the interview.
“The next quarter is going to be ugly,” he added.
The new coronavirus pandemic is wreaking havoc on the global economy, health care and supply chains, Chambers said.
Authorities shut down non-essential businesses and ordered people to stay at home, which resulted in nearly 10 million unemployment claims in the United States in two weeks. There is still a shortage of essential medical supplies such as respiratory masks and respirators, as well as long shipping delays.
Authorities have attempted to mitigate the fallout by lowering interest rates, increasing bond purchases and allocating billions of dollars to help airlines and other struggling industries, state and local governments, small businesses, health care providers and households.
“There is no magic rebound,” Chambers warned. “The federal government, the Fed, the central bank and the Treasury have done an incredible job in responding as quickly as they have done. “
“Reinvent or let yourself be”
The current disruption will eliminate weaker businesses, but present an opportunity for innovators, Chambers told Marketwatch.
“Businesses lack cash,” he said. “It’s time to reinvent or be left behind. “
Chambers gave the example of Cisco responding to the 2005 avian flu pandemic by deploying TelePresence, a pioneer in video conferencing products. He also pointed out that Shake Shack and Delta Air Lines were digitizing their operations, arguing that this positioned them well to withstand the pandemic.