Millions of Unemployed Americans Face Imminent Catastrophe

A worker at a food bank in Texas.

I will concede that I have been lucky to date through the economic disaster that has accompanied the Covid-19 pandemic and have worked consistently throughout the nightmare.  While the husband's salon was closed for two months, it is now back open and unless Virginia goes back to so-called Phase One, can continue to operate.  Millions are not so lucky and continue to rely on unemployment payments to survive and literally put food on the table and to keep a roof over their heads.  A sizable chunk of the economic relief that has been keeping them afloat is set to end on or before the end of the month of July and oblivious  - or perhaps uncaring is the better description - Republicans, including Der Trumpenführer, appear only too willing to allow economic catastrophe  overtake millions of unemployed Americans.  A column in the New York Times looks at the impending catastrophe.  Here are highlights:

Some of us knew from the beginning that Donald Trump wasn’t up to the job of being president, that he wouldn’t be able to deal with a crisis that wasn’t of his own making. Still, the magnitude of America’s coronavirus failure has shocked even the cynics.

At this point Florida alone has an average daily death toll roughly equal to that of the whole European Union, which has 20 times its population.

How did this happen? One key element in our deadly debacle has been extreme shortsightedness: At every stage of the crisis Trump and his allies refused to acknowledge or get ahead of disasters everyone paying attention clearly saw coming.

Blithe denials that Covid-19 posed a threat gave way to blithe denials that rapid reopening would lead to a new surge in infections; now that the surge is upon us, Republican governors are responding sluggishly and grudgingly, while the White House is doing nothing at all.

And now another disaster — this time economic rather than epidemiological — is just days away.

To understand the cliff we’re about to plunge over, you need to know that while America’s overall handling of Covid-19 was catastrophically bad, one piece — the economic response — was actually better than many of us expected. The CARES Act, largely devised by Democrats but enacted by a bipartisan majority late in March, had flaws in both design and implementation, yet it did a lot both to alleviate hardship and to limit the economic fallout from the pandemic.

In particular, the act provided vastly increased aid to workers idled by lockdowns imposed to curb the spread of the coronavirus. U.S. unemployment insurance is normally a weak protection against adversity: Many workers aren’t covered, and even those who are usually receive only a small fraction of their previous wages. But the CARES Act both expanded coverage, for example to gig workers, and sharply increased benefits, adding $600 to every recipient’s weekly check.

These enhanced benefits did double duty. They meant that there was far less misery than one might otherwise have expected from a crisis that temporarily eliminated 22 million jobs; by some measures poverty actually declined.

They also helped sustain those parts of the economy that weren’t locked down. Without those emergency benefits, laid-off workers would have been forced to slash spending across the board. This would have generated a whole second round of job loss and economic contraction, as well as creating a huge wave of missed rental payments and evictions.

[T]hat $600 weekly supplement — which accounts for most of the expansion of benefits — applies only to benefit weeks that end “on or before July 31.” July 31 is a Friday. . . . millions of workers will see their incomes plunge 60 percent or more just a few days from now.

Two months have gone by since the House passed a relief measure that would, among other things, extend enhanced benefits through the rest of the year. But neither Senate Republicans nor the White House has shown any sense of urgency about the looming crisis. Why?

Part of the answer is that Trump and his officials are, as always, far behind the coronavirus curve. . . . . they’re apparently oblivious to what everyone else sees — an economy that is stumbling again as the coronavirus surges back.

Delusions about the state of the economic recovery, in turn, allow conservatives to indulge in one of their favorite zombie ideas — that helping the unemployed in a depressed economy hurts job creation, by discouraging people from taking jobs.

Worrying about employment incentives in the midst of a pandemic is even crazier than worrying about those incentives in the aftermath of a financial crisis, but it seems to be at the core of White House thinking (or maybe that’s “thinking”) . . . .

My sense is that Republicans have a delusional view of their own bargaining position. They don’t seem to realize that they, not the Democrats, will be blamed if millions are plunged into penury because relief is delayed; to the extent that they’re willing to act at all, they still imagine that they can extract concessions like a blanket exemption of businesses from pandemic liability.

Maybe the prospect of catastrophe will concentrate Republican minds, but it seems more likely that we’re heading for weeks if not months of extreme financial distress for millions of Americans, distress that will hobble the economy as a whole. This disaster didn’t need to happen; but you can say the same thing about most of what has gone wrong in this country lately.

The GOP Agenda Fuels An Epidemic of Hardship and Hunger

Food Bank line in Michigan.

The Covid-19 pandemic and the massive unemployment figures - more will be released today after yesterday's numbers brought the number of unemployed to over 30 million - have brought into focus the failed Republican policies which seek to leave the majority of Americans living in grim Dickensian like conditions while the wealthy suck up more and more of the nation's wealth.  Now, in this time of crisis, Congressional Republicans oppose more aid to those suffering.  Meanwhile, the Trump regime is before the U.S. Supreme Court seeking to end the Affordable Health Care Act which would leave millions more Americans with no health insurance. Cruelty is the hallmark of today's GOP and when has to wonder when its idiot supporters will stop allowing themselves to be played through racial resentment - the majority of those on welfare and unemployment are white, not black - and, of course pandering to Christian fanaticism.  A column in the New York Times looks at the GOP agenda that ought to have all but the wealthy running screaming from the GOP and its candidates.  Here are excerpts: 

Covid-19 has had a devastating effect on workers. The economy has plunged so quickly that official statistics can’t keep up, but the available data suggest that tens of millions of Americans have lost their jobs through no fault of their own, with more job losses to come and full recovery probably years away.

But Republicans adamantly oppose extending enhanced unemployment benefits — such an extension, says Senator Lindsey Graham, will take place “over our dead bodies.” (Actually, over other people’s dead bodies.)

They apparently want to return to a situation in which most unemployed workers get no benefits at all, and even those collecting unemployment insurance get only a small fraction of their previous income.

Because most working-age Americans receive health insurance through their employers, job losses will cause a huge rise in the number of uninsured. The only mitigating factor is the Affordable Care Act, a.k.a. Obamacare, which will allow many though by no means all of the newly uninsured to find alternative coverage.

But the Trump administration is still trying to have the Affordable Care Act ruled unconstitutional; “We want to terminate health care under Obamacare,” declared Donald Trump, even though the administration has never offered a serious alternative. Bear in mind that ending Obamacare would end protection for Americans with pre-existing conditions — and that insurers would probably refuse to cover anyone who had Covid-19.

Finally, the devastation caused by the coronavirus has left many in the world’s wealthiest major nation unable to put sufficient food on the table. Families with children under 12 are especially hard hit: According to one recent survey, 41 percent of these families are already unable to afford enough to eat. Food banks are overwhelmed, with lines sometimes a mile long.

But Republicans are still trying to make food stamps harder to get, and fiercely oppose proposals to temporarily make food aid more generous.

Attempts to restart the economy even though the pandemic is far from controlled will lead to many more deaths, and will probably backfire even in purely economic terms as states are forced to lock down again.

But we’re only now starting to get a sense of the Republican Party’s cruelty toward the economic victims of the coronavirus. In the face of what amounts to a vast natural disaster, you might have expected conservatives to break, at least temporarily, with their traditional opposition to helping fellow citizens in need. But no; they’re as determined as ever to punish the poor and unlucky.

What’s remarkable about this determination is that the usual arguments against helping the needy, which were weak even in normal times, have become completely unsustainable in the face of the pandemic. Yet those arguments, zombielike, just keep shambling on.

For example, you still hear complaints that spending on food stamps and unemployment benefits increases the deficit. Now, Republicans never really cared about budget deficits; they demonstrated their hypocrisy by cheerfully passing a huge tax cut in 2017, and saying nothing as deficits surged.

But what’s even worse, if you ask me, is hearing Republicans complain that food stamps and unemployment benefits reduce the incentive to seek work. There was never serious evidence for this claim, but right now — at a time when workers can’t work, because doing their normal jobs would kill lots of people — I find it hard to understand how anyone can make this argument without gagging.

So what explains the G.O.P.’s extraordinary indifference to the plight of Americans impoverished by this national disaster?

One answer may be that much of America’s right has effectively decided that we should simply go back to business as usual and accept the resulting death toll. Also, conservatives may worry that if we help those in distress, even temporarily, many Americans might decide that a stronger social safety net is a good thing in general. If your political strategy depends on convincing people that government is always the problem, never the solution, you don’t want voters to see the government actually doing good, even in times of dire need.

Whatever the reasons, it’s becoming increasingly clear that Americans suffering from the economic consequences of Covid-19 will get far less help than they should. Having already condemned tens of thousands to unnecessary death, Trump and his allies are in the process of condemning tens of millions to unnecessary hardship.