Quote:
Originally Posted by Natalya
In October 2009 unemployment was 10.4% or 10.5% which was the peak.
What could happen here, assuming the government doesn't cancel rent, is all the service sector employees who have had their jobs closed (restaurants, bars, bands, amusement parks, childcare, nonessential retail, etc) will be unable to pay rent and get evicted en masse which could lead to severe social disruption. That's why Mnuchin wants to give everyone around $1200 a month for a couple months, but it seems like it's getting stalled by the usual bickering in Congress right now....
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$1200 a month doesn't even cover rent let alone other large costs (like health insurance). Unemployment is also insufficient. I collect unemployment for 8 months back in 2008 / 2009 when the company I worked for folded. It was capped at $220 a week which was about 20% of the median household income at the time. My wife and I didn't need it and I just invested it in my IRA but people that needed to try to live on it were just screwed.
It seems we haven't learned anything from 2008 / 2009. We are still talking about sending everyone a check instead of targeting people that actually need help. The most obvious way to help people is the expand who is eligible for unemployment (huge numbers of workers are not) and raise the payouts to a reasonable amount. The mechanism to do this is already there, it just takes the will to do so.
Unfortunately we are still taking about tax breaks, loans, and crazy rules that exclude huge numbers of workers.
The paid sick leave passed last week is an excellent example. It only covers employers from 50-500 employees. That is only about 25% of workers, it is only 2 weeks of pay, and companies will get "paid" back in 3 months with a payroll tax cut. Congress spent all week to pass that.
Meanwhile as Congress bickers 20% of the US population has been mandated to stay home and not go to work.
LA's 110 Harbor Freeway Friday Afternoon at "rush hour"
