Federal Reserve Chair
Says 40% of American
Households Making Less
than $40,000 Annually
Became Unemployed in
March
On May 12, 2020, Federal Reserve Chair Jerome Powell said that a significant
segment of low-income earners were laid off in March.
segment of low-income earners were laid off in March.
“A Fed survey being released tomorrow reflects findings similar to many
others: Among people who were working in February, almost 40% of those
in households making less than $40,000 a year had lost a job in March,”
Powell said during a webinar at the Peterson Institute for International Economics.
others: Among people who were working in February, almost 40% of those
in households making less than $40,000 a year had lost a job in March,”
Powell said during a webinar at the Peterson Institute for International Economics.
“This reversal of economic fortune has caused a level of pain that is hard to
capture in words, as lives are upended amid great uncertainty about the
future,” he stated.
capture in words, as lives are upended amid great uncertainty about the
future,” he stated.
A large portion of those jobs impacted are in the service sector, which
generally do not come with benefits such as paid sick leave or offer their
employees remote work opportunities.
generally do not come with benefits such as paid sick leave or offer their
employees remote work opportunities.
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According to a survey from the Pew Research Center that was
published in April also revealed that one in four lower-income adults had
any savings to stave off financial shocks brought about by unemployment
and other economic emergencies.
published in April also revealed that one in four lower-income adults had
any savings to stave off financial shocks brought about by unemployment
and other economic emergencies.
Powell understands the gravity of the situation that the virus has brought
about. He also pushed for even more relief measures to keep America’s
damaged economy intact.
about. He also pushed for even more relief measures to keep America’s
damaged economy intact.
“Additional fiscal support could be costly, but worth it if it helps avoid
long-term economic damage and leaves us with a stronger recovery,”
he assert.
long-term economic damage and leaves us with a stronger recovery,”
he assert.
During the past two months, over 33 million Americans have filed
unemployment claims, as large numbers of businesses are closing
their doors and state governments are passing stay-at-home orders.
unemployment claims, as large numbers of businesses are closing
their doors and state governments are passing stay-at-home orders.
Democrats recently rolled out a $3 trillion spending proposal with the
intent of doling out handouts to states, businesses, and people rattled
by the pandemic. Senate Republicans are likely going to kill such
legislation once it arrives in the Senate.
intent of doling out handouts to states, businesses, and people rattled
by the pandemic. Senate Republicans are likely going to kill such
legislation once it arrives in the Senate.
It’s become clear that America must reopen or it will face tremendous
economic hardship.
economic hardship.
Shutting down the economy over a virus that does not represent an
apocalyptic threat to America is unacceptable at this point and will
put millions of working class Americans in economic limbo.
apocalyptic threat to America is unacceptable at this point and will
put millions of working class Americans in economic limbo.
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