Economy News

Federal Aid Dries Up – 8 million into poverty

The 2 trillion dollar cares act in the USA that had been touted as a safety net in the March-April, is now largely exhausted.

This has led to poverty levels being higher than they were before the coronavirus pandemic- according to two studies.

The number of poor have grown from four million before the pandemic to eight million since May.

Researchers from 2 universities found that poverty has risen by six million in past three months. Worsening the situation for black people and children.

This lets us know that people are having difficulty in paying their bills, rent and in putting food on the table.

It has led to double the joblessness in workers who receive cheques, a research estimated, by including the gig workers and the self employed.

Among those experiencing new hardships is Kristin Jeffcoat, 24, who is raising three children in Camptonville, Calif., a hamlet about 80 miles north of Sacramento.

When schools closed last spring, Ms. Jeffcoat, an Instacart shopper, stayed home to watch them. Then her husband got laid off from landscaping work.

The expanded safety net initially caught them: Together, they received more than $1,500 a week in jobless benefits, which exceeded their lost wages.

They also received a $3,900 stimulus check, which they used to prepay three months of rent. But since the unemployment bonus ended in July, their cash income has fallen nearly 80 percent.

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