Household Financial Stability April 21, 2020, 1pm ET Welcome - - PowerPoint PPT Presentation

Unequal Impact of COVID-19 on Household Financial Stability

April 21, 2020, 1pm ET

Welcome

Guillermo Cantor

Director, Applied Research Prosperity 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
• ut in various communities
• 3. Discuss some policy solutions and advocacy
• pportunities.

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 GoToWebinar Control Panel

• If you experience any technical

issues, email gotomeeting@prosperitynow.org

The Unequal Impact of Covid-19: Report Highlights Lebaron Sims

Senior 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 Occupations

Combined 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

• f 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 Cure​

Senior Advocacy Manager Prosperity 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 policy@prosperitynow.org ▪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 ProsperityNowto 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!