In the United States, a 2017 study revealed that 75% of workers were living paycheck to paycheck, struggling to stay afloat. Many managed to put food on the table but were unable to handle unexpected expenses, like a $250 dental visit or car repair. According to Bankrate’s 2019 Financial Security Index, nearly 30% of Americans had no savings, and 25% were unable to cover three months of living costs. This was already a significant issue before the pandemic hit.
Now, the situation has worsened. Due to widespread job losses and economic fallout, a shocking number of families are now living in poverty. Research from Columbia University indicates that an additional 8 million people have fallen into poverty since May. While the CARES Act temporarily lifted 18 million individuals above the poverty line in April, that relief was short-lived, dwindling to around 4 million by late summer after the $600 weekly unemployment boost expired.
The CARES Act provided some assistance, but others, including my family, were left behind. We haven’t received our stimulus check due to an absurd reason—my spouse, a working citizen who pays taxes, has a notation on her social security card that labels her as an immigrant. This has allowed the government to discriminate against us. The reality is that not all families are treated equally in today’s America. The rising poverty rates have hit Black and Hispanic communities, as well as children, especially hard.
Those who earned too little to file taxes had to navigate additional steps to apply for their stimulus checks, adding to their stress during these trying times. An op-ed in The Hill highlights that tying aid to employment status means that ‘essential workers’—who continue to risk their health to keep essential services running—receive minimal support. In New York City, for instance, around 24% of these frontline workers find themselves beneath the poverty line.
Where is the leadership? The person who claimed he would “make America great again” is nowhere to be found amid this crisis. Millions living in poverty—defined as $26,200 for a family of four in the lower 48 states—cannot be overlooked. How can anyone budget or survive on such a meager amount?
The contradictory messaging and irresponsible behavior from our leaders are alarming, especially with over 40 million lives hanging in the balance. In a recent article from The New York Times, author Jason DeParle pointed out that the government is ill-equipped to handle the economic hardships we currently face. He noted that the rise in poverty persisted, despite an improving job market, indicating that the economy was recovering too slowly to compensate for the lost benefits. With new layoffs and a surge in COVID-19 cases, talks in Washington regarding new stimulus packages remain stalled.
We are dealing with politicians who seem to lack empathy. They don’t understand the anxiety of hunger, the stress of hospital bills, or the despair of having just $5 to fill a gas tank. They don’t know what it feels like to wake up in a shelter with their children, yearning for a better future. Currently, there is no plan, no negotiations, and no comprehension of what it takes to restore our country, especially from this administration. Though the CARES Act provided a one-time payment of $1,200 per adult and $500 per child, it doesn’t last long enough to provide food security when the funds run out. Where is the ongoing support that American families desperately need? This is not the time for stalemates.
As reported by The New York Times, the Democratic House has passed extensive financial aid packages twice, only to face resistance from the Republican Senate, which favors smaller proposals. Adding to the confusion, President Trump has shifted his stance frequently, initially halting stimulus talks only to later advocate for a larger package. His promise that a substantial stimulus bill would be passed immediately after his reelection serves as little comfort to those in need.
Now, Congress has adjourned until November 9th without passing any coronavirus aid, leaving many families in a precarious situation. The CARES Act is merely a temporary fix that does not address the larger, systemic issues at hand. The administration’s inaction while Americans suffer is troubling.
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Summary
The ongoing pandemic has exacerbated financial struggles for American families, leading to increased poverty rates, especially among marginalized communities. Despite the temporary relief provided by the CARES Act, many are still left unsupported. The lack of empathetic leadership is evident as Congress struggles to agree on further aid, leaving millions without the assistance they need.
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- How to find financial aid during the pandemic
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- Poverty rates in the U.S. during COVID-19
- Resources for families in financial crisis