US poverty rises as aid winds down

US poverty rises as aid winds down

By Onlykhabar News Media Fri 16 October, 2020 ( about 5 years ago ) 🎤574 Viewersbusiness

Poverty rates in the US are rising, as government aid winds down despite ongoing economic distress caused by the pandemic.

Last week, nearly 900,000 people filed new claims for jobless benefits - the highest number since August. But politicians in Washington have been at odds over a deal for months, with talks in recent weeks overshadowed by the upcoming presidential election and disputes over the Supreme Court. Analysts have called for aid to prevent the economic recovery from stalling. "The sobering reality is that it appears further help may not be coming from elected officials in Washington," said Mark Hamrick, senior economic analyst at Bankrate.com. 

The aid included cheques of up to $1,200 for most individuals and money to temporarily boost unemployment benefits by an extra $600 per week. This spring, as the pandemic cast more than 20 million Americans out of work, the US government approved more than $3tn (£2.3tn) in relief money. But those figures began to tick up again this summer, as the one-time financial boost from the cheques wore off and the expansion to unemployment benefits expired at the end of July. Until the pandemic, 49-year-old Latacha Barnett worked as a substitute teacher in Louisville, Kentucky during the school year and at a hair salon in the summer. The virus eliminated both lines of work.

In the US, President Donald Trump has celebrated that the economy has so far rebounded faster than many analysts initially expected. But while the US has regained about half the jobs lost in March and April, many economists do not expect the labour market to fully recover before the end of 2023 - and they warn that momentum appears to be slowing. More than 25 million people continued to collect some form of unemployment payment as of 26 September, the Labor Department said. On Thursday, Mr Trump said he was willing to agree to more spending, but Treasury Secretary Steven Mnuchin, who has been leading negotiations on behalf of the president, said a deal would be difficult before the November presidential election. Mitch McConnell, who leads Republicans in the Senate, said Congress would approve more aid, if not before the election then after. But he warned that his members continue to favour more limited, targeted relief.

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By Onlykhabar News Media Fri 16 October, 2020 🎤574 Viewersbusiness
TAGS: USA Covid - 19 Business US Economy
US poverty rises as aid winds down

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