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End of unemployment benefits spell disaster without plans to replace them

(BUSINESS NEWS) If Congress doesn’t agree on a stimulus extension, December 31st could be a massive “cliff” for millions of unemployed Americans

Unemployment documents being handed to employer.

If you’re still employed, chances are you know someone who has been furloughed or laid off as a result of COVID-19. Unemployment benefits from the CARES Act have cushioned the economic fallout from the pandemic for millions of Americans who are currently jobless. As someone who was furloughed from my 9-5 at the beginning of quarantine, I was extremely relieved to discover that the government had a plan for myself and others in my shoes.

However, without an agreed upon plan from Congress, these benefits are set to expire at the end of the year. This inaction would make unemployed Americans exceedingly more vulnerable to poverty and eviction. So, what’s the deal Congress? Why are y’all dragging your feet?

Here’s what you have to know about the current state of things:

  • Since the end of July, when extra unemployment benefits (aka the “extra $600) expired, most unemployed people are only making about half of their wage
  • According to the Bureau of Labor Statistics, there are about two unemployed workers for every open job (yikes!)
  • Over 10 million people are collecting pandemic-related unemployment benefits in America – and another 345,000 filed new applications last week – this isn’t “getting better”
  • After December the federal ban on evictions will be lifted, meaning we will most likely see a massive spike in unhoused individuals and families

All of this is happening as the holiday season approaches and a third wave of COVID spikes across America. As it gets colder in many places, many businesses that made it through the first waves are expected to close and, subsequently, their workers are expected to be laid off.

Everything is coming to a head on December 31st. If Congress doesn’t get its act together and agree on what a pandemic relief extension needs to look like, the American people will undoubtedly experience a very dark and depressing winter and spring.

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Jean Kimmel, an economics professor at Western Michigan University, states that: “A society that already was becoming increasingly unequal will just become even more unequal [without benefit extensions].” Because COVID-related unemployment disproportionately affected America’s gig and low-wage workers, as well as women and People of Color, the failure to extend benefits would only further exacerbate the economic inequality in our country, which isn’t good for anyone.

Let’s hope our politicians can put aside their differences for the sake of the general public. Fingers crossed.

Anaïs DerSimonian is a writer, filmmaker, and educator interested in media, culture and the arts. She is Clark University Alumni with a degree in Culture Studies and Screen Studies. She has produced various documentary and narrative projects, including a profile on an NGO in Yerevan, Armenia that provides micro-loans to cottage industries and entrepreneurs based in rural regions to help create jobs, self-sufficiency, and to stimulate the post-Soviet economy. She is currently based in Boston. Besides filmmaking, Anaïs enjoys reading good fiction and watching sketch and stand-up comedy.

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  1. Pingback: Popular opinion: Unemployment in a pandemic sucks [EDITORIAL]

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