1/8/2024 0 Comments Relief bill![]() The fact that only 42% of Black Americans own their homes, compared with 72% of their white peers, means most of them are renters, making them more vulnerable to losing their homes. The gap between black and white homeownership rates has widened since the 1960s. Adding even more assistance could have major economic benefits as low-income beneficiaries especially are likely to spend every extra penny on food and other goods, stimulating the economy.Īccess to affordable housing has been worsening for years, especially in communities of color. Biden’s proposed stimulus package already includes $30 million to help renters and support struggling landlords. But that will likely need to be extended further.Īnother critical need is rental and housing assistance. 20, Biden extended the moratorium – which was set to expire at the end of January – to March 31. To address this crisis, I believe Congress needs to both provide short-term solutions and long-term fixes.įor starters, it’s vital that the Centers for Disease Control and Prevention’s eviction moratorium continue. This could also worsen the public health situation and slow the economic recovery. Millions of renters could face homelessness once existing moratoriums expire and accumulated back rent comes due.Ībout 9 million households have fallen behind on rent payments, with over 1 million estimated to owe $5,000 or more. The result has been a looming eviction crisis that has been staved off by a patchwork of federal, state and local moratoriums. Renters have been among the most vulnerable.Ĭompared with homeowners, renters are more likely to be poor, young and either Black or Hispanic – the exact same demographic of those who have suffered the most from the pandemic’s economic fallout. ![]() The sharp rise in unemployment due to the pandemic has left many Americans struggling to pay the bills. AP Photo/Steven Senne Addressing the eviction crisis Rather than continuing to fund the Paycheck Protection Program, Congress and the president should switch gears and enact a program like the U.K.‘s that will see America through the crisis, however long it lasts.Īn eviction crisis looms for the Biden administration. And the government has encouraged workers to become whistleblowers, while imposing large penalties on the officers of companies engaged in fraud. In the U.K., fraud has been limited because companies don’t get the money. The Paycheck Protection Program was meant to be temporary, although more funds were added in December. program has provided support to workers throughout the pandemic’s ups and downs. unemployment, in contrast, almost doubled from 3.5% to 6.7% in the that same period, peaking at nearly 15% in April. In the U.K., unemployment increased gradually last year from 4% pre-pandemic to 4.9% in October. Unemployment rates in the two countries tell part of the British success story. And aid goes only to workers whose companies experience problems due to the coronavirus pandemic. Importantly, aid goes to workers – not companies – which has ensured workers and their incomes have been protected throughout the crisis. The plan has helped companies reduce their labor costs, while maintaining flexibility to bring workers back when conditions allow. This solves the problem of what to do about workers whose hours get cut or who go from full-time to part-time status. Workers can be partially furloughed, working three or four days per week rather than five. Low-income workers also receive additional monthly payments of up to the equivalent of about US$500. Companies cover another 20% of usual wages. The government pays up to 80% of usual wages – subject to an income cap – to furloughed workers that companies retain as employees. Its government created the Coronavirus Job Retention Scheme, a form of wage and job insurance for workers. In addition, billions of dollars went to companies that didn’t need it, while some of those in greatest need couldn’t secure adequate funds. While helpful, the Paycheck Protection Program came with major flaws, such as a design that led to lots of fraud. One way Congress addressed these problems back in March is by offering small companies forgivable loans if they kept workers on their payroll for 10 weeks. economy will struggle to recover without significant support for small businesses and their workers. Small companies, which employ nearly half of all workers, have been hit hardest. businesses have failed every month, on average. Steven Pressman, Colorado State University A better way to save businesses while helping workers We asked four economists to share what’s on the top of their wish lists for Biden and Congress, and why. economy and provide more aid for priorities like vaccines, reopening schools and state governments. Editor’s note: The Biden administration has made it clear it wants to inject more money into the U.S.
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