unequal impact of covid-19 on household financial stability impact of covid...1. discuss findings...
TRANSCRIPT
Unequal Impact of COVID-19 on Household Financial Stability
April 21, 2020, 1pm ET
Welcome
Guillermo CantorDirector, Applied ResearchProsperity Now
Prosperity
Now’s mission
is to ensure
everyone in our
country has a
clear path to
financial stability,
wealth and
prosperity.
1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’ financial stability”
2. Share state/local examples of how this issue plays out in various communities
3. Discuss some policy solutions and advocacy opportunities.
Webinar’s goals
Today’s Agenda and Speakers
✓ Report Highlights (Lebaron Sims)
✓ Insights from State and Local Partners (Andrea Caupain Sanderson and Liana Humphrey)
✓ Policy Updates and Advocacy Opportunities (Vanna Cure)
✓ Next Steps & Close
Housekeeping
• This webinar is being recorded and will be mailed to registrants and available online
• All webinar attendees are muted to ensure sound quality
• Ask a question or share your thoughts anytime by typing into the text box of your GoToWebinarControl Panel
• If you experience any technical issues, email [email protected]
The Unequal Impact of Covid-19:
Report Highlights
Lebaron SimsSenior Research Manager,Prosperity Now
The Landscape, Pre-COVID19
• Millions of Americans suffer income shortfalls—even during economic booms.
• Financial emergencies don’t
happen in a vacuum—but policy can help folks get through the worst.
Macroeconomic
slowdown, lost income, and mass layoffs are the
first visible signs of
COVID-19’s impact.
Who is most
vulnerable during
an economic
crisis?
Who is most vulnerable during an economic crisis?
1. Over 45 million households without
enough cash on hand to weather an
emergency.
AND DON’T HAVE ENOUGH SAVED TO COVER A
POVERTY-LEVEL INCOME FOR 3 MONTHS IN THE
EVENT OF AN EMERGENCY
($3,168 for individual, $6,550 for family of four)
Who is most vulnerable during an economic crisis?
1. Over 45 million households without
enough cash on hand to weather an
emergency.
AND DON’T HAVE ENOUGH SAVED TO COVER A
POVERTY-LEVEL INCOME FOR 3 MONTHS IN THE EVENT OF AN EMERGENCY
($3,168 for individual, $6,550 for family of four)
Who is most vulnerable during an economic crisis?
2. Tens of millions of American workers in
low-wage occupations, or are paid hourly.
Who is most vulnerable during an economic crisis?
2. Tens of millions of American workers in
low-wage occupations, or are paid hourly.
Employment in Selected Low-Wage OccupationsCombined food preparation and serving,
including food prep only
4,490,780
Retail salespersons 4,448,120
Cashiers 3,635,550
Waiters and waitresses 2,582,410
Personal care aides 2,211,950
Maids and housekeeping cleaners 924,290
Home health aides 797,670
Packers and packagers (hand) 663,970
Bartenders 631,480
Childcare workers 564,630
Source: Prosperity Now analysis of Bureau of Labor Statistics
2018 Occupational Employment Statistics data.
Who is most vulnerable during an economic crisis?
3. Racial and ethnic minorities, immigrants,
and women.
Women are more likely than men to:
• Work in service sector occupations—particularly food prep, personal care, and cleaning or maintenance positions.
• Be paid at or below the minimum wage.
• Live in a liquid-asset poor household.
Who is most vulnerable during an economic crisis?
3. Racial and ethnic minorities, immigrants,
and women.
Black and Hispanic or Latino workers are more likely to:
• Be paid at or below the minimum wage, and have low weekly wages.
• Live in a liquid-asset poor household.
• Lack health insurance or other access to workplace benefits.
Who is most vulnerable during an economic crisis?
3. Racial and ethnic minorities, immigrants,
and women.
Immigrants are more likely than native-born individuals to:
• Work in service sector occupations—particularly immigrant women.
• Have low weekly wages.
• Live in a liquid-asset poor household.
Who is most vulnerable during an economic crisis?
4. Undocumented immigrants, who are largely
excluded from accessing social supports
Undocumented workers comprise:• Over 25% of all farming jobs• 15% of all construction jobs• 9% of all service jobs
But: undocumented workers are often barred from accessing public benefit programs, and are more likely to work in positions that require in-person attendance and interpersonal contact.
Who is most vulnerable during an economic crisis?
5. Low-wage workers in certain occupations
and states that fail to provide protections and
benefits to all classes of workers.
Source: Prosperity Now Scorecard, 2020
Who is most vulnerable during an economic crisis?
5. Low-wage workers in certain occupations
and states that fail to provide protections and
benefits to all classes of workers.
Source: Prosperity Now Scorecard, 2020
In order to avert
catastrophe, we must ensure that the income,
home, and health of every
person are protected and preserved.
The Landscape, Post-COVID19
• The economic fallout from the COVID-19 pandemic may last years, and will hurt low- and
moderate-income households, racial and ethnic minorities,
immigrants, and women most.
• Policymakers must strengthen our
social safety net and consumer protections to mitigate the effects
of a protracted recession—and to head-off future crises.
Local Perspectives
Andrea Caupain Sanderson
Chief Executive Officer
Bryd Barr Place
Liana Humphrey
Chief Marketing Officer
Crisis Assistance Ministry
▪Share comments or ask questions at
any time by typing the question into the
text box on the control panel.
▪Or use the chat box to tell us what
impact you’re observing in your
communities and with your clients.
Questions
Policy, Advocacy and Next Steps
Vanna CureSenior Advocacy ManagerProsperity Now
Moving Forward Through State Policy
Increased Worker Supports
• Paid leave
• Expanding unemployment insurance
Strong Consumer Protections
• Safe access to cash
• Protections against predatory short-term lending
Safety Net
• Removal of asset limits
• Saving supports
Moving Forward Through Federal Policy
Additional funding for free tax prep services such as
VITA
Remove asset limits from public assistance programs
Additional funding for CDFIs to provide financial services in
underinvested communities
Help families build emergency savings
Extend CARES Act housing-related protections to manufactured
homes
Considerations for a fourth federal stimulus package:
▪Expand access to credit and affordable financial products
▪Stronger consumer protections against abusive debt collectors and predatory lenders
▪Housing affordability and stability or renters and owners
▪Broadening safety net programs
▪ Innovative programs to build short- and long-term savings
Federal Policy for a More Equitable Future
▪Share comments or ask questions at
any time by typing the question into the
text box on the control panel.
Questions
Resources
▪Visit our Advocacy Center to stay up to date with
advocacy efforts.
▪Policy questions? Email us at
▪Please complete the survey!
▪Sign up for other Networks and Campaigns to stay
in the know about issues you care about
▪Let us know your suggestions for future call topics
Stay Updated by Joining our Advocacy Center!Make your voice heard by calling, emailing, tweeting or scheduling a visit with
your Members of Congress with a fast and simple click of a button!
Text ProsperityNow to 18554716140 to join!
Plug into the Prosperity Now Community
◼ Financial Coaching Network
◼ Racial Wealth Equity Network
◼ Affordable Homeownership Network
◼ Financial Coaching Network
◼ Adult Matched Savings Network
◼ Taxpayer Opportunity Network
◼ Campaign for Every Kids Future — Children’s Savings Accounts
◼ Medical Financial Partnerships (Health/Wealth)
◼ Innovations in Manufactured Housing (I’M HOME) Network
Sign up for listservs and working groups, volunteer to facilitate
peer discussions, serve in a leadership role and more!
Thank You!
Please complete our survey!