Can unemployment insurance be fixed?

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It is wednesday today. The eighteen th day of november. Good as always to have you along everybody. Thirty eight days a little bit more than a month gets you to the day. After christmas and the expiration of most of the federal unemployment programs that were passed last spring in the cares. Act that in and of itself is not good economic news. Neither to is the reality that there are no negotiations happening right now. In congress on more relief democrats and republicans aren't even talking and so according to research out today from the century foundation twelve million people who are out of work in this economy are thirty eight days from losing their benefits. Marketplace's nancy marshall genzer explains what that's gonna mean for them and for us without a deal. December twenty six will be a grim day for unemployed workers and a us economy andrew stenner with a century foundation. Says it's like twelve million workers and their spending power will fall off a cliff. Even if you thought you had ten eleven twelve nine weeks left. You won't get those weeks. You get cut off that exact week. Benefits for gig. Workers and the self-employed are ending as is federal. Help for most people who've exhausted their state benefits stettler says black workers in the service sector will be hit especially hard since so many of those businesses have closed. Kimberly austin is a black artist. Who lost her job. As a face painter at legoland near san diego she wants federal action now. The should not eat a political joke to anybody. This makes no sense. Austin has been getting by on two hundred eighty five dollars a week in unemployment. she's uninsured and the inhalers she needs for her. Asthma cost. Two hundred dollars jason. ye doesn't have health insurance either. He's an accountant in los angeles. Who was laid off last june. He's been living on four hundred fifty dollars a week plus his savings. The cliff will be bad because eventually with no benefits. Then you know it'll be a hundred percent savings. He says savings will run out in february. He could tap into a retirement account but he's only fifty five. That means an early withdrawal penalty at penalty waiver in the cares act also expires at the end of the year. I'm nancy marshall genzer for marketplace more on unemployment by the way later on the program from the guy who tracks unemployment for us mitchell hartman. The federal aviation administration said today that boeing's much troubled and fatal seven thirty seven maxes have been cleared to fly. Again it's not happening tomorrow. There is maintenance to be done on planes that have been grounded for twenty months and pilots to be retrained of course also the air travelling public to be reassured. Are they gonna be and do they. Want to get on board marketplace's replenish or has that one. He's not a big traveler but houston. It analysts spencer harper likes a trip a couple times a year. I would have no problems on the max. His wife and her family though different story she is plainly stated. It is not happening with us. They just don't trust it. They wanna see more people flying before they think it's ready. That actually suits airlines and boeing. Just fine the. Reinstatement of the aircraft is going to take quite a long period of time. Keith mackey is president of mackey international and aviation safety consulting firm south west which owns the most 737 max's of any airline says it won't fly passengers on the planes before april two thousand twenty one american phasing them in starting this december twenty ninth and over that period of time it will see the aircraft flying sagely. That's the hope of airlines and boeing anyway. There's no shortage of seats on other planes. These days so skittish flyers can very easily wait and see american has said if passengers don't wanna fly innomax they can change but that kind of passenger is not the one flying now anyway says samuel angle with consulting firm. Icf the consumers who are flying now are the customers who in general are less scared about travel. You can expect some rebranding though. Says mike boyd with aviation consulting firm boyd group. Airlines are not going to use the word max for anything if somebody down the halls. Name's max she's going to have his name. Changed frank airlines will probably use the term seven thirty seven eight instead. He says just in case. You want to check your booking in new york. I'm sabri venture for marketplace max. Down the hall though man come on on wall street today while acknowledging that correlation is not causation. No sooner came the announcement that new york city schools are shutting down again then. The major indices rolled over. We'll have the details when we do. The numbers income driver los angeles these days or any city. Really probably but la is where we happen to be. Anyway you do that. And you're gonna see a lot of shops and restaurants and strip malls basically closed lockdowns and restrictions from the government. Yes but also just changed consumer behavior a week or so ago. Though i found myself at an outdoor shopping center which was basically open all the way. How are you thanks to me a little bit. how are you good. That's the guy who developed plaza la alameda through his company prime store. I'm gonna let him do the introduction. My name is snyder. Where at la la mesa in walnut park california. And what is what is What is this place walnut park in this neighborhood. Tell me about so. This is a transitional neighborhood that was historically a fringe industrial warehousing district That became very dominant with latino and african american neighborhood and We assemble the fairly large area here to create jobs and bring in Services and businesses that we didn't have transitional meaning that puzzle alameda where you can find chains like chipotle and marshall's in some moms and pops as well it sits on what was once a glass manufacturing facility and textile dyeing house that had been abandoned for almost twenty years. Artur had brought some pictures to show and this was all abandoned and shut down. This was the number one crime neighborhood and the sheriff's department. Then we started assembling sued. The just swallow hard when you decided to do this. Because i mean you look at that and then you look at this. That's i mean yeah. I think there was a young naive today. Got us to where we are now but been always my desire to create and economic change inside the neighborhood and i think that anybody was going to do it. That didn't understand the dynamics of the culture right rightful. That's and that's the key right. Understanding the culture. I think so. I think it's Being relentless and having passion for building this mall did create some economic change from abandoned factories to just before the pandemic hit a local unemployment rate around four percent. now of course it's higher fourteen percent in september so so let's do a quick three sixty here and just see who's here right. I mean just right off the bat you've got a jumba juice and a panda express. Clearly major chain saw the opportunity to now. Did you have to sell them on this. Yes i the first ten years Of this endeavor. People thought i was out of my mind and i thought so too many times. They wouldn't return our calls and there would be no no real interest until we started understanding how to educate the market in the scale of the opportunity. And what we do. Is we partner with local businesses local entrepreneurs a lot of the latino black community. They have so much talent so much skill working for other companies and other businesses and these next generations want to open and operate their own businesses. So that's why we call locate them with traffic generating businesses But we require that all of our businesses hire locally for construction for permanent jobs for everything. tell me about then the lieber pull that you that you draw for your customers i guess or your tenants draw from around here right. I mean they can go out and they can find these people. Oh yeah this. So the mand is just extraordinary in terms of job seeking jobs what we've worked on over. the last. Many decades is creating a bigger opportunity for job training. When i first started. There wasn't any of that it was just sort of pulling people from other markets. But who lived here. Instead of having them commute to work they would be able to work right here. So so let's just i. I wanna walk for just a little bit and We'll get away from the armored car and Help me understand how you came to design this place as it is right because you've got a little plaza here across the street from some kind of big box as you said about designing this What were you trying to do right. Because design is the key elements of getting people in the door. Yeah so the concept of sokolow Looking to the public square. Yeah yeah that that's the concept here. We took exactly the materials Even the landscaping materials the finishes and the traditional kiosk right and one of the key elements here at the time was no fences. No gates no walls. These are neighborhoods traditionally had been built with that in mind and we took not only that but we put the bus stop directly into a turn out in the plaza so that it becomes integrated to the community and we go ahead. Well i'm going to say a lot of ceramic tiles and all kinds of cool stuff to yeah. This is a material although keen and As from mexico that we brought in in creating a place where we can have lots of activities There's programming here constantly dance events and performance used to be anyway right right right i mean look it's gonna it's kind of sad you've got this great space and it. Yeah you could see record off children's player the fan off because we don't want people congregating that but that's the concept of it. Yeah give me your sense As a guy whose business depends on the overall health of the economy. How are you feeling One thing that i have found about my particular business model is that these communities are so under served that the demand from the businesses that we have believe it or not as still driving our business so where we. Ross marshall target these businesses still need and want to open stores in these communities because where they look across the map they find that they have too many stores already but in these areas they feel that they don't have any stores right so the stores are in white neighborhoods and places. They're easy to get to not black and brown places right exactly. Yeah that's exactly right so they still have a huge growth potential there. We've been talking about change in this country for a long time. Especially the bracken black and brown communities have been talking about change. Do you think it's here now. Are you hope I'm skeptical We just opened freedom plaza and watts. It was fifteen years in the making That was the transformation of the jordan downs project which i worked on for nearly fifteen years so that opened that gives you some hope. But seeing the the chaos that we've seen as a result of george floyd incident and others and seeing the lack of velocity and response. I'm skeptical still about. Thanks a lot. Thank you appreciate it coming up. They have guaranteed response tons last services speedy and polite customer service with a twist if you will but first let's do the numbers dow industrial's down three hundred and forty-four points today one in ten percent. Twenty nine thousand four thirty eight. That has backed down ninety. seven points. eight tenths percent. Eleven thousand eight hundred eighty one the s. and p. Five hundred gave back. Forty-one points one tenth percent there as well thirty five and sixty seven bowing down three point two percent today despite that seven. Thirty seven max. News tesla of more than ten percent today after an upgrade from morgan stanley that upgrade by the way noted. It was time to look beyond tesla's cars the company self-driving software also in vehicle entertainment packages john quite get targeted flip two and three tenths percent. Today's third quarter sales and income easily beat expectations digital sales up one hundred fifty five percent on the same quarter last year which kind of amazing bonds down. Just attach yield on the ten year. Zero point eight six percent. You're listening to marketplace this marketplace. Podcast is supported by transfer wise. The smart new way to send and receive money internationally. Transfer wise gives you the real exchange rate. Every time you send money abroad you can even get an account that holds up to fifty four currencies at once and convert between them any time. Join over eight million customers. In more than eighty countries who are already saving. Try them out for free at transfer. Wise dot com slash marketplace or. Download the app this marketplace podcast is supported by. We work as a business you know today as of working it takes new measures toward health and safety flexible terms for where when and how you work spaces designed with your purpose in mind it takes the innovation of a. We work office to take your business where you want it to be visit. We dot co slash future to learn more. This is marketplace. I'm kai rebel. Nancy marshall genzer was reminding us up the top programme of the peril. This economy is looking at come the day after christmas. Most of the pandemic unemployment benefits are just going to go away unless congress and the white house do something back. At the end of march the strain on the eighty year old insurance system in this economy which is really a patchwork of systems run by the states. It broke laid off. Workers waited months for benefits online. Applications kept crashing people applying by phone got busy signals for like weeks and so as marketplace's mitchell hartman reports there is new momentum. Now to fix things. Brian forester of tulsa. Oklahoma has been out of work during the pandemic. And he's run out of patience with the unemployment insurance system. He was supposed to start a job. In march which got delayed till june due to covid he applied for federal pandemic unemployment assistance. But you would call and call and call and literally. Nobody would call back. Things never got resolved. He should have gotten several months of payments instead. He says he got one check for seven hundred dollars. Michelle evermore at the progressive national employment law project says a lot of applicants have never gotten through the system in some states. I'm seeing seventy percent approved in some states. Forty to fifty percent approved. A lot of those are inaccurate. Denials people who are still in limbo. There's broad agreement across the political spectrum. That the patchwork of antiquated steve computer systems failed catastrophically to respond to the economic emergency caused by the pandemic. It's clear that we need to upgrade the it systems it's causing problems getting benefits to the people who need them. that's economist michael strain at the conservative american enterprise institute. He points out that congress wanted to add extra federal money to unemployment checks so laid off workers wouldn't need to look for new jobs during the pandemic but lawmakers didn't want people to earn more on unemployment than they had made working. It should not be beyond the technological capability of state governments to calculate what a person's previous wage was and then to give them one hundred percent of that amount in unemployment benefit but it was beyond those systems so congress just gave everybody an extra six hundred dollars a week. It consultant adam bo- bro- who's working on reform proposals to offer. The biden administration says steet systems should be connected to federal agencies that already have key information about applicants. Wage data dates of employment and things that are available in federal databases employees. So you could demonstrate eligibility a bit more of an automated basis in a way that scales other reform proposals address. The wide disparity between states in benefits and eligibility michelle evermore at the national employment law project says the feds should set baseline standards twenty six weeks benefits of minimum wage replacement amount a better weekly benefit a simplified application process conservatives. Like michael strain countered. That states should continue to have wide latitude to respond to local economic conditions. I think it makes sense for states to say that we think in our state a less generous benefit make sense and maybe in another state and more generous benefit make sense and if voters in the states want different systems that seems like a reasonable outcome the biden administration will be able to push. It upgrades and enhanced data coordination and it might be able to issue new guidelines to speed up claims processing and reduced denials but a new national standards to increase unemployment benefits and expand eligibility. That'll be mostly up to congress. I'm mitchell hartman for marketplace. Hey you got seven and a half minutes free tomorrow morning. Listen to david brancaccio gang on the marketplace morning report everything you need to know what your economic day. Even before president trump fired this country's top cyber security official last night for truthfully saying there was no fraud or software glitches that cost the president votes in the election. He lost even before that cybersecurity experts had been warning that the presidential transition period is a huge opportunity for hackers. Governments of course aren't alone in their vulnerabilities companies around the world. Continue to get hit by ransomware. Their computer systems infiltrated critical. Data locked up. ransom demanded. Funny thing happened not too long ago. Though one ransomware group took some of its proceeds and gave them to charity. Hackers maybe with a heart mono here's got about a month ago cyber security consultant brett callow at the firm mc soft emailed me a screen shot from the dark web. It showed the hacker group dark side posting receipts of ten thousand dollar donations to charities when for children the other for clean water. Nice stay said that play felt. It was only fair that they return some family that i had taken to charities have had you think kobuk is. We pleased tonight. It'll be held to change. Someone's life dark side talks to the public through blog posts in the dark web to be clear. This is a criminal outfit. But it's one of several trying to brand itself as on me sound a similar group which is not been named publicly recently hacked into a company locked up its data but then quickly reversed course. Investigators say the ransomware group responsible supplied decryption key. As soon as they would total. it's a hostile. This was in germany. Now bad people do seemingly good things in the offline world to this old newsreel shows men coming out of a depression era soup kitchen in chicago. Funded by the mobster. Al capone and so on a sunday and a very hot in japan. Violent organized crime groups gave sonam relief in twenty eleven and right now says social psychologists travaglino at the university of kent. Italian syndicates are providing pandemic aid. They're report from the europe which says the mafia in italy at the moment. Is this money. Supporting relation through the knockdowns. They ensure that everyone can eat. Travaglino says that kind of generosity serves the criminal enterprise by buying off the community the mafia the function around a rule. Which is the needs known as amish. Da which means rule of silence. You never report the police. they do. For example you never denounced them and that's really important for them to operate because they need the kind of level of public support and to get that support. Some cyber groups work to appear customer-friendly while committing their crimes. Like in that movie. La story from the ninety s. the two main characters chitchatting when a pleasant man with a gun approaches. Bob thank you very much. Cyber analysts catalysts. Act nice thinking that they're victims will come lee fork over the money. They have guaranteed response. Dawn's last services speedy polite that decryption to come with a guarantee that they will work. It's hard to know the actual motivations in any one particular case but atlanta more shot professor of cyber security at western sydney university in australia has interviewed many hackers in the course of her research when we were doing some interviews with people in in eastern europe than in russia the people in question perceived themselves to be like robin hood stealing from the rich to give to the poor. It's a way for crooks to appease their consciences she says in fact some even clean up and organiz victims files as they rip them off to be clear many are not buying this court. Altruism one nonprofit that the dark side hackers donated to children international said. It has no intention of keeping the money. I'm scott tong from articles this final note on the way out today. You know. I have been called the more than once a beer snob and okay. I'll take that. But come on this item that i saw today. Waffle house the waffle chain is teaming up with a coney bring at greensboro georgia to make and sell to somebody. I guess a bacon infused beer. I love bacon. I love beer not together but points for the name. It's going to be called. This thing is bacon and kegs. Are we gotta go. But here's your mid week moment of economic context kinda back to where we started the hurt. This economy is looking at without more relief from the government. The new york metropolitan transportation authority the country's biggest mass transit system. Oh by the way said today that without help it's going to have to cut forty to fifty percent of its subway. Bus and light rail service and lay off ninety. Three hundred people makes me think of that story that sabrina enforced couple of years ago about the failing infrastructure. That is the new york city subway system. Yes but which also pointed out that the new york subway carries the people who make something like ten percent of this country's entire economy happened media. Production team is robin. Edgar drew just at jeffpeters. Daniel ramirez j. cbo trump in fort. Ben tolliday becca wineman. They come to the office so we don't have to unless your home internet is terrible. Rozelle see you tomorrow. This marketplace podcast is sponsored by maryl- maryl- guided investing allows you to adding goals and get investment strategies aligned with your needs as you manage life. Merrill's professionals help. Keep your goals on track by building. Monitoring and rebalancing your portfolio get started at merrill edge dot com slash investing goals merrill lynch pierce fenner and smith incorporated both a registered broker-dealer and investment advisor members. Sipc.

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