6 ways to fix America's broken safety net

The pandemic has exacerbated underlying economic problems so profound that many Americans wondered whether the American dream was even meant for them. Before the crisis, a Federal Reserve study found that roughly 4 in 10 Americans would have a hard time covering an $400 emergency expense and a quarter skipped necessary medical care because they couldn’t afford the cost. Too many families struggled to pay bills for childcare, housing and health care. People of color faced steeper struggles due to generations of discrimination and racism.

Now, as Covid-19 ravages the economy, things have gotten even worse, especially for our most vulnerable. By mid-June there were more than 31 million people receiving unemployment insurance benefits and struggling to rely on unemployment systems that were never designed to handle a problem this vast. As many as 27 million may have lost access to health care. More than 100,000 small businesses have permanently closed, with more on the horizon. The Cleveland Federal Reserve Bank found that only one-third of businesses in their region plan to rehire in full. A whopping 40% of households with income under $40,000 lost a job in March. In the first wave of layoffs, employment for workers earning under $20 per hour dropped by 34% between February and April, three times more than workers earning $30 or more. Those with no high school degree saw a surge in job loss to 16.6%, as did our 2001 Gulf War Vets, to unemployment rates of nearly 14% in June. Hispanic/Latino and African American/Black communities have suffered the largest surges in unemployment rates, rising to 14.5% and 15.4%, respectively.

Although the Federal Reserve and Congress took unprecedented action, it’s simply not enough. European countries have provided more rapid and consistent wage stabilization that delivered a needed economic buffer and have experienced far less damage. For example, Germany and the Netherlands have programs to keep workers tied to their employers with government assistance so that recovery can begin more rapidly.

• We must ensure everyone has affordable health care coverage. The current administration is trying to tear down the Affordable Care Act at the worst possible time. Instead, we should build on ACA and make sure the millions who are losing employer-based care have a high-quality, affordable option.
• We must provide better support for workers in transition. As a result of the crisis, we will see massive job displacement. The University of Chicago reports that 40% of current layoffs could be permanent. We need to modernize our unemployment insurance system and make sure that gig workers can access it. And we need to add new benefits like training vouchers to help those who want to transition to new careers.
• We must connect everyone to broadband. Thirty one percent of rural Americans don’t have access to broadband at home, and many with access in our cities and suburbs can’t afford it. That makes it more difficult for them to look for work, for their kids to participate in school — whether virtual or in person — or for family members to consult physicians by video. We need to connect everyone to broadband and ensure low-income families have support to afford service and the technology to utilize it.
• We must expand access to child care, sick leave and family medical leave. Our frontline workers are heroes who have helped us through this crisis, yet too many cannot afford adequate child care or receive sick leave benefits. That must change. The pandemic may force the closure of half of the capacity in our daycare centers. Helping them survive must be a national priority.
• We must strengthen food assistance. For years, Republicans have worked to undermine essential food programs like SNAP. The pandemic has shown that we must increase monthly benefits so families can sustain themselves. We must also allow benefits to be used for things like online grocery delivery, hot food and cleaning supplies.
• We must support state and local governments. Right now, our state and local governments are hemorrhaging from their active response to the Covid-19 crisis and from lost revenues — putting jobs and support at risk. Ironically, it’s exactly when citizens need more support from their local governments that these same governments may be forced to lay off workers. These layoffs will delay any economic recovery that we anticipate. The bipartisan National Governors Association reports the need for states is $500 billion.