Crystal Ball Morris, Chester Englander, Jasmine Garza discussed on LRC Presents: All the President's Lawyers
Week in extra unemployment payments to more than 20 million jobless Americans. That expired in mid summer, and George Washington University economist J. Shamba says the amount of cash going out to laid off workers cratered. It fell from 110 in July 2 $34 billion in September. So there's this massive drop off to the economy and also to the most vulnerable households. Those $1200 relief checks from the spring have been spent with most of the federal pandemic relief now gone. You've seen a slowing of retail sales and personal spending, Joseph Brusuelas said. Ressam Consulting says a quarter of small businesses have closed, he predicts without more federal support, including lending to small businesses more will fail. And state and local governments won't be able to keep teachers and other essential workers on the payroll, says Michael Gratz at Columbia Law School. The loss of civil service jobs will disproportionately affect minorities because they've been hired into those jobs. Bottom line, says Dan North at Credit Insurer Euler Hermes, North America. Okay, let's say we don't have a stimulus package. The economy gets pretty severely damaged in the short term, probably for five years to get back to full employment. The burden is falling to families that are running out of time and money, says Colombia's Michael Gratz. People are facing evictions, difficulty paying for food and lodging. This is a desperate situation, one that the chaos in Washington isn't making any better. I'm Mitchell Hartmann for marketplace, So there is a cost to the economy of all this Politiken, as Mitchell was telling us, there are also really big personal costs. Marketplaces. Jasmine Garza has store number two Chester Englander is an orchestra percussionists living in Ohio. He was unemployed for much of this year. So was his musician wife. They have two small Children, and he was getting 600 a week in federal unemployment benefits. From April to July. I added $6000 credit card debt in my one card, and it was clear like You know things were deteriorating incredibly fast. He's used a credit card to pay for food mortgage utilities. His parents in their seventies recently had to pitch in For a lot of Americans. The economic crisis means drawing unemployment and wiping out savings. Like Chris Dancy in Texas. I mean, our savings was eviscerated, even with mortgage deferments and lots of plans. You still you can't stop your spending past. Nancy is a health consultant who has been unemployed since the pandemic began. His husband is a schoolteacher who is still working, but with only one income dancing is nervous about the future. So is Crystal Ball Morris, who have had to defer his dream of buying a house. He works in the New York film industry and was without income for much of the year. Morris is now employed again. But as the city sees a new rise in covert cases, Morris says, My biggest here right now is if we have another shutdown in the next month, and there is no additional government assistance, then we definitely have to go start tapping into our savings again. He says he's always tried to set money aside for a rainy day, but he's worried about how many more rainy days he and his family will have to weather. I'm Jasmine Garza for marketplace. Okay, now the political insight into all of this, namely how we wound up empty handed after force, something months of negotiations. It comes to us from Politico's Jake Sherman on MSNBC this morning. Markets are Woefully uneducated about Washington. Those markets as you know, I've been on a roll since the end of March, in part because of the cares act and in part because of the hopes for another relief bill, which has eased some of the pressure. A lot of the pressure on lawmakers to deal this is idiocy. These people on Wall Street should should spend a day in Washington and talking to people because they're just they are just completely out of their minds. Or in other words, there was never gonna be a deal or hopes were faint at best, and Wall Street should unknown it. These people in any other business Wall Street analysts who have been putting 90% on a stimulus deal, any other business would be put away for fraud. I mean, it's just complete nonsense. Anybody with the brain understood this. And then today what happens, negotiations are torpedoed by the White House and Wall Street says, Hey, no. Yeah, it's all good. We'll have the details when we do the numbers. Consider the modern American grocery store aisles and aisles of almost every product you can think of really kind of a miracle of logistics and of productivity and of consumer choice. And now in this virus economy, it has to be said, not without hazard for those consumers.