Facts, not Misconceptions, Should Determine Government Support for Struggling American Families
The inaction of Congress to ease the economic suffering of millions of Americans is incomprehensible to me. As the pandemic rages on, our national leaders demonstrate almost no understanding of what our families are up against as they struggle to pay the rent, support remote learning for their kids, and stay alive.
Listening to news interviews with our lawmakers is infuriating. Their beliefs about the realities of working families—beliefs that are influencing life or death decisions for millions—often seem based on myths and misconceptions. So let’s try to set the record straight with a few facts.
Myth #1: Americans are not returning to work because unemployment benefits are too generous.
In a recent SaverLife poll, just 21% of our members report that they are temporarily earning more while unemployed. When you consider the average annual income of our members is $25,000, that should give you an indication of just how misguided this assumption is.
Here are two more likely reasons people are unable to return to work. First, there just aren’t jobs to return to, especially for those in low-wage occupations. In June we asked members if they had lost their jobs or had their hours reduced—a staggering 83% said yes. By August, that number had increased to 89% reporting an income disruption due to COVID.
Second, with many schools unable to safely reopen, who will care for the children of those who can’t work from home? The majority of our members are mothers, and 41% are unable to work remotely. Even for those who can work remotely, 34% anticipate a loss of earnings as they work fewer hours in order to focus on educating and caring for their children.
Myth #2: The average American household can cover basic expenses on 70% of prior income, so benefits should be reduced.
If anything shows how out of touch Congress is with the lived experience of American families, it’s their apparent ignorance of the pre-COVID economic vulnerability of working people, the majority of whom were living paycheck to paycheck prior to the pandemic. Most Americans never had a 30% discretionary income budget to cut back on.
When COVID-19 hit, Rhiannon's husband had to take a leave of absence from his job to stay home with their immunocompromised daughter. He received 2/3 pay--a financial loss that had a huge impact on their family. As Rhiannon explained, "We cannot afford to not work." The family used credit cards to bridge the gap in their income.
Add to this, that for our members with kids at home, 53% report that their expenses are actually going up, mostly for food (the price of food is rising at the fastest rate in decades) and the technology costs associated with remote learning.
In March, SaverLife and Neighborhood Trust launched an emergency cash disbursement program, providing $500 to $1,000 cash payments to approximately 5,000 people. Back then, we saw this funding as a way to bridge the gap between sudden income loss and the time it would take for government support to kick-in. At that time, this appeared to be the case as recipients used the funds to pay rent or utility bills, and set aside a little in savings. Charte—who planned to begin a job as a census worker before the pandemic hit—told us she spent her relief payment on essentials for her kids. “I got the baby a big box of Pampers and wipes, and my three-year-old still wears pull-ups sometimes so I got him a box of those. Then I paid half our rent,” she said.
By the end of the summer, we reasoned, most people would be returning to work and we could turn our attention to helping families rebuild. SaverLife members shared this optimistic view.
Danielle, an immunocompromised mother who was unable to work once the pandemic began, told us in May that she was already job searching and dreaming of getting a four-year degree. “I want to be able to get out of the house, to get my daughter back to a regular school schedule for the fall,” Danielle said. “I want to get back to normal life and daily routines, and be productive citizens again.”
Today, much of the country remains months or even years away from that optimistic prediction of economic recovery.
SaverLife members are doing everything they can to get through this time, but they need help. It is the responsibility of Congress to act now, and to base their decisions on facts, not fictions.