Sunday, April 12, 2020
Labor Unions and Small Business Advocates Applaud Jayapal's Paycheck Guarantee Plan to Stave Off Economic Collapse
"Mass unemployment is a policy choice," the congresswoman said. "We can and should choose differently."
by
Julia Conley, staff writer
https://www.commondreams.org/news/2020/04/10/labor-unions-and-small-business-advocates-applaud-jayapals-paycheck-guarantee-plan
With at least 17 million Americans out of work and economists estimating that more than a quarter of small businesses in the U.S. are at risk of imminent shutdown amid the coronavirus pandemic, Rep. Pramila Jayapal on Friday called on the federal government to take bold and immediate action to ensure working Americans receive their paychecks for the duration of the crisis.
The Washington state Democrat, a co-chair of the Congressional Progressive Caucus, introduced the Paycheck Guarantee Act to allow both large and small businesses across the country to continue paying 100% of their employees' salaries of up to $100,000 annually—a plan similar to those that have been enacted in Denmark, the Netherlands, and the U.K. since the pandemic forced businesses around the world to shut down.
Jayapal introduced the legislation as the official unemployment rate in the U.S. hit 13%, the highest it's been since the Great Depression.
"Mass unemployment is a policy choice," the congresswoman said. "We can and should choose differently."
Under Jayapal's proposal, any company that's suffered losses during the pandemic could be eligible for a grant covering three months of its base payroll, including salaries and benefits for employees. The companies could renew the grants after three months if the pandemic and business closures continue.
The plan would also disincentivize layoffs or furloughs, with only companies that keep all their employees on staff during the crisis eligible for the grants.
Jayapal said the proposal would "put the brakes on mass layoffs and economic decline" and "would enable a speedier and smoother recovery."
The plan has already been endorsed by labor unions including the American Federation of Teachers, Unite Here, and the SEIU. The small business advocacy group Maine Street Alliance, which has raised concerns about the delayed relief businesses have been offered via loans through the Paycheck Protection Program (PPP), called the Paycheck Guarantee Act "exactly the type of program we need" to stave off an economic meltdown—with working people as the hardest-hit victims—during the pandemic.
"The financial devastation of COVID-19 to small businesses and working people has been stunning, and threatens to upend our entire economy," said Amanda Ballantyne, director of the Main Street Alliance. "We applaud Representative Jayapal's leadership in developing the Paycheck Guarantee Act, which provides a bold and workable solution that addresses the true severity, scope, and potential duration of the financial crisis that small business owners and their employees are facing right now."
Progressives on social media also applauded the legislation as both pragmatic and "humane."
According to the Washington Post, Jayapal has gotten a positive response regarding the legislation from Senate Majority Leader Chuck Schumer (D-N.Y.) and is planning to speak with House Speaker Nancy Pelosi (D-Calif.) about the proposal in the coming days. The legislation has been endorsed by the Congressional Progressive Caucus and already has several co-sponsors in the House, according to Vox.
Americans for Financial Reform said Jayapal's legislation is necessary to provide small businesses with relief as federal loans have proven insufficient.
"In the absence of action along the lines outlined in Rep. Jayapal's legislation," said policy director Marcus Stanley, "the likelihood of a Great Depression scale economic catastrophe and the disappearance of large swathes of the small business sector becomes ever greater."
'Unforgettable' Footage of Endless Line of Cars at Food Banks a Stark Illustration of Coronavirus Crisis in US
"It is outrageous that in the richest country in the history of the world, people are going hungry," said Bernie Sanders, who called for more urgent relief from Congress.
by
Eoin Higgins, staff writer
https://www.commondreams.org/news/2020/04/10/unforgettable-footage-endless-line-cars-food-banks-stark-illustration-coronavirus
Images and video of miles of cars lined up at food banks in San Antonio and other cities across the U.S. present a striking example of the economic effects of the ongoing coronavirus outbreak, which has thrown at least 16 million Americans out of work in recent weeks and increased pressure on the distribution centers to provide key staples for a flood of needy people in the country.
"Unforgettable image: thousands of cars lined up at a San Antonio food bank today, the desperate families inside kept safely apart," tweeted CNN senior editor Amanda Katz. "Breadline, 2020."
On Thursday, San Antonio Food Bank creative manager Robert R. Fike posted a time-lapse video of the line of cars waiting to get supplies.
"It was a rough one today," San Antonio Food Bank president and CEO Eric Cooper told the San Antonio Express News. "We have never executed on as large of a demand as we are now."
The onset of the coronavirus outbreak brought with it economic paralysis across the U.S. and the world, shutting down businesses around the world as people use social distancing and isolation to curb the spread of the disease. In the U.S., where lawmakers have largely dragged their feet on providing unemployed people with help, Americans are increasingly turning to charities like food banks to provide the means of survival.
Se. Bernie Sanders (I-Vt.), an outspoken advocate for economic relief efforts, tweeted on Friday that the scenes from food banks were indicative of the need for immediate Congressional action.
"It is outrageous that in the richest country in the history of the world, people are going hungry," said Sanders.
According to the New York Times, food banks across the country are facing funding shortfalls in the face of increasing demand despite donations from the superrich:
Feeding America, the nation's largest network of food banks, with more than 200 affiliates, has projected a $1.4 billion shortfall in the next six months alone. Last week, Jeff Bezos, the founder of Amazon, announced that he was donating $100 million to the group—the largest single donation in its history, but still less than a tenth of what it needs.
In January 2019, Business Insider calculated Bezos makes roughly $4,474,885 every hour, making his donation to Feeding America the equivalent of around 22-and-a-half hours of passive wealth generation.
San Antonio was not the only city to see record numbers of people seeking help and miles of cars waiting for food. Pittsburgh, Inglewood, Chicago, and Sunrise, Florida were among cities with packed roads leading to local facilities and massive amounts of food to be distributed.
Feeding South Florida executive vice president Sari Vatske noted in an interview with the Daily Mail that with stay-at-home orders in her state curtailing the available workforce to handle an unprecedented surge in those needing aid, there may be trouble ahead in how to efficiently distribute the food.
"The math is not on our side," said Vatske.
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