When the coronavirus was first discovered, no one could have anticipated the economic destruction that came with it. Presumably for most, it was going to be a virus that would blow around for a few weeks, and then everything will get back to normal, but the situation seemed to worsen as time went on. As economic distress was mounting in the country, it became critical for families to sustain themselves but job security was becoming increasingly insecure. Low-income earners are the people who have been hit the most during these times and in this article, we will discuss how it has generally affected them.
Underlying problems for low-income earners
A recent survey from Pew Research Center discovered that low-income earners in the US who were already facing significant economic pressure before the pandemic are currently plunging into drastic poverty levels. About 43% of U.S. adults seem to be experiencing this distress especially. What prevalent factors are increasing this perilous condition? We’ll take a look at a few:
- Shortage of food: World reports indicate that the world has never faced as much hunger as is being faced today. For low-income earners, this could result in illnesses, hunger, or even death in the long run.
- Little or no savings: Low-income earners, because of their pay grade, can find it difficult to have a saving culture. Many are unprepared to withstand the financial shocks the pandemic has presented, more so than those with higher incomes. Surveys indicate that only about 23% of low-income families have something kept for rainy days and cases of emergency such as a pandemic can force so many out of jobs or reduce their paychecks drastically.
- Difficulty paying debts: Even with the absence of a financial emergency, 53% of low-income adults say they are enduring hardships with offsetting debts and paying their bills. 24% say they can only make partial payments while a higher 32% reason that the chance of them paying their monthly bills is very small. Very little can be left to the imagination of what these families are going through during these difficult times.
- Access to basic health care: Admittedly, COVID-19 is a huge health threat to people worldwide. Unfortunately, families that earn a low-income, in the face of this pandemic, maybe disproportionately harmed either by COVID-19 or another illness because of inadequate resources to cover adequate health care. The Economic Policy Institute posits that it is likely that about 127 million workers have lost their health insurance covered provided by their employers during the pandemic.
To Wrap It Up
Although just about everyone has been hit hard by this pandemic, the attempts of the government to slightly mitigate these situations cannot be overlooked. Nonetheless, it has become evident that a lot of restructuring has to be done in terms of considering and sheltering low-income earners in the US during these perilous times.
While you may not feel that you have access to financial resources, you DO have access to legal protection. The Debt Relief and Education Foundation has pro bono attorneys at the ready to help you and your family get back on track. Contact The Debt Relief and Education Foundation today for a free consultation.