Tuesday, August 25, 2020

Debt, eviction and hunger: Millions fall back into crisis as stimulus and safety nets vanish

Without federal aid to stave off the impact of the pandemic and economic recession, households that were already on the margins are now being pushed to the brink of financial ruin.                                                                                       The Washington Post

One of the most successful elements of the government’s response to the coronavirus recession — protecting people on the margins from falling into poverty — is faltering as the safety net shrinks and federal benefits expire.
Major recessions are especially fraught for low-income earners, whose finances can veer from tenuous to dire with one missed paycheck. But as the economy cratered this spring, economists and poverty experts were mildly surprised to discover that the torrent of government support that followed — particularly the $600 a week in expanded unemployment benefits and one-time $1,200 stimulus checks — likely lowered the overall poverty rate.  Read more here