Mitchell Hartman, Donald Trump, Clothing Chain Century discussed on Marketplace with Kai Ryssdal

Automatic TRANSCRIPT

We are going to do a couple of stories now about gaps in this economy gaps on the personal economy side and gaps on the business side, it has been seven weeks now since those extra unemployment benefits that tens of millions of people had been depending on went away Neil it talked about that. It's been five weeks since president trump's temporary and partial replacement took effect using human disaster relief money and it has been five and a half months since Congress passed the cares act and as to deepen neil and I were talking about we are nowhere on more government money help for this economy possibly not until after the election. So how is that working out in our personal economies? Here's marketplace's Mitchell Hartman At the end of July about twenty, five, million jobless Americans suddenly lost six hundred dollars a week in federal benefits from their weekly unemployment checks leaving the typical recipient with three twenty, five a week on average across the country President Trump's pandemic unemployment replacement scheme announced in early August was slow to get off the ground says economist Andrew Statiners at the century. Foundation. This stopgap that was the to place was tardy and insufficient, and it's already running. Out So far about twenty states have distributed the FEMA benefits most at three hundred dollars a week more states have applied for their fema money, which is capped at forty four, billion nationwide enough to cover just six weeks of benefits almost as soon as he will get the money, they won't be getting any more by statiners calculation about ten billion dollars in extra jobless benefits have been paid out so far under trump's so-called lost wages assistance program. Compared to sixty eight billion that would have gone out if the original six, hundred, a week payments at continued Johanna Mayor, a healthcare worker is trying to cope with the loss of that extra federal money. She lives in Maryland and has three elementary age kids all at home right now, she and her husband had been out of work since the pandemic hit both received unemployment she's been struggling since their federal pandemic it's ended in July I mean. It's a significant difference are vines alone is two thousand dollars a month Maryland just announced it will start paying out the extra three, hundred a week in benefits, but it hasn't cut any checks yet for mayor and her family. Now I'm trying to survive a pay our rent or bills and our food on what amounts to six, hundred, forty, five dollars a week I mean, it's not survivable here according to a poll by Ipsos three out of four. Support. ADDITIONAL PAYMENTS TO PEOPLE UNEMPLOYED DUE TO CORONA virus. I'm Mitchell Hartman for marketplace. Okay. Mitchell did gaps in personal economies. Kimberly. Adams is going to gaps in business economies brick and mortar retailers are doing everything they can to get by we've been telling you about that. and. Yet, some of those retailers aren't getting by we told you yesterday about the Clothing Chain Century Twenty one shutting down. Yes, there is the pandemic as a cause, but the company also said in its announcement in pre direct language that it's insurance company was to blame as well. Marketplace's Kimberly. Adams explains that one. Century. Twenty one really didn't mince words saying it's insurers had quote turn their backs on us at this most critical time. The company says that despite having business interruption insurance when business was interrupted due to covid nineteen claims weren't paid out in this case like many others around the country insurers saying they don't have to Loretta waters is with the insurance. Information Institute which represents the industry because it's a pandemic it was never taken into the rates when insurance company provided that kind of coverage in court fights all over the country the industry is pointing to clauses and exclusions in contracts arguing the industry isn't obligated to nor can afford to absorb the pandemic losses in the meantime business. Owners are wondering what use their insurance even is, and then you also see a lot of folks are getting renewal notices for their policies for next year and a lot of their rates are going up. Davis is a lawyer working with the small business advocacy, group mainstreet alliance in some cases to three hundred percent, and so it's understandable that small business owners are saying wait a minute if the industry didn't pay out because of these exclusions, why are they going up both insurance companies and business organizations are lobbying Congress for fix Leon Buck with the National Retail Federation says, insurers need a federal backstop using the program developed after nine eleven as a model there's another terrorism event. The companies will cover portion of the federal government will cover the majority of the cost and that's key because after nine eleven, no one was able to get insurance century twenty. One noted that it's insurance did help it recoup losses in New York.

Coming up next