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Joint Economic Committee Democrats Chairman - Senator Martin Heinrich (D-NM)

Publications

Apr 24 2020

The Impact of Coronavirus on the Working Poor and People of Color

Washington, D.C.—Today, Congressman Don Beyer (D-VA), the Vice Chair of the U.S. Congress Joint Economic Committee (JEC), released a report that explains why Black, Latino and low-income communities are disproportionately impacted by the coronavirus.

As the report shows, Black, Latino and low-income Americans are more likely to have pre-existing conditions such as hypertension, chronic lung disease, diabetes and heart disease—a CDC report found that nine of 10 Americans hospitalized for coronavirus had these health conditions. In addition, they are more likely to do person-to-person work in the service industry—often without benefits like paid sick leave, health insurance and the flexibility to work from home.

Black, Latino and low-income Americans are also more likely to suffer economic impacts from the recession caused by coronavirus because they historically experience higher unemployment rates, lower income and much less wealth.

“As a result of a corrosive cocktail of systemic inequalities, tens of thousands of people across the country are more likely to die from the coronavirus because of who they are, what they do and where they live,” Congressman Beyer said.

“Not everyone has a job that will allow them to work from home and those that do not are disproportionately low-income and people of color,” Congressman Beyer said. “Public-sector jobs that have been pathways to the middle class for so many black families—essential jobs to keep society running—are now risky. I keep thinking about the black bus driver in Detroit who, like so many of those in the service industry, was torn between a paycheck and protecting his health—a few weeks after complaining about the lack of health protections on his bus he died of coronavirus.”

Congressman Beyer added, “As Congress thinks through how to help the nation respond and recover from the coronavirus, it is important that we remember that race neutral programs and policies do not always have race neutral impacts. We saw this play out with some of the small business programs that were included in previous legislative responses to the coronavirus—even though they are eligible, small-business owners of color are having a harder time accessing federal loans through their local banks. I am pleased that in the bill passed yesterday we improved access by ensuring more funds are available to minority-owned businesses.”

One of the communities hardest hit by the coronavirus is the Black community. A CDC study of coronavirus hospitalization in March across 14 states showed that 33% of admitted patients were Black, despite Blacks making up just 18% of that study’s population. In Louisiana and Chicago, 70% of people who have died from coronavirus have been Black, despite Black Americans making up just one-third of the population in both places. In Washington, D.C., 81% of the people who have died from the coronavirus have been Black, despite Black Americans making up 46% of the population. Nationally, 24% of Black Americans and Latinos work in the service industry compared to 16% of Whites.

In addition to Black, Latino and low-income communities, the report shows the disproportionate impact the coronavirus is having on the Native American communities. Though national level statistics are scarce, available data show the Navajo Nation has seen the highest number of confirmed cases (1,360) and deaths (52) thus far . In New Mexico, Native Americans make up 11% of the population and 37% of those confirmed with coronavirus.

Apr 02 2020

Massive Aid to State and Local Governments Needed to Slow Economic Damage

Washington, D.C. —Today, Congressman Don Beyer (D-VA), the Vice Chair of the U.S. Congress Joint Economic Committee, released a report arguing that federal aid to state and local governments is crucial for containing the coronavirus and preventing economic disaster and should be a major focus of Congress’s fourth legislative response to the public health crisis.

As the report shows, states are being simultaneously strained by skyrocketing spending to combat the coronavirus and large losses in revenue (i.e. sales tax, income tax, tourism). Furthermore, since almost every state is required by law to balance its budget, this may force many to cut spending in areas like education.

Budget cuts at the state level will in turn force budget cuts at the local level, creating a downward spiral that will slow response and recovery nationwide.

“State and local governments are crying out for assistance, and our health and economy depend on Congress helping them,” Beyer said. “If Congress does not respond with aggressive aid, we risk repeating the mistakes of the Great Recession, which lasted years longer for state and local governments because the federal government left them to fend for themselves.”

Beyer continued, “No one should think that this is someone else’s problem. While the fire is hottest in New York right now, it soon will burn from state to state, especially if Congress does not do enough to help state and local governments. As a result, every town in America will be crushed by the coronavirus and our economy will fall a lot further than it has already fallen.”

As the report shows, Medicaid will account for much of states’ increased spending since individuals who lose their jobs (and employer-sponsored health insurance) will need to enroll and many current enrollees will contract the coronavirus and need to be cared for. While the second coronavirus response package includes a 6.2 percentage point increase in the federal government’s share of Medicaid funding (known as the Federal Medical Assistance Percentage or FMAP), the increase was about 3.8 percentage points less than the average increase in the American Recovery and Reinvestment Act. On average, states cover about 40 percent of the cost of Medicaid with the federal government paying the rest.

“One of the most important things Congress’s fourth legislative response must do is increase the federal government’s share of Medicaid funding—the current increase is less than what was given to states during the Great Recession and should be much higher, especially when you consider that the joint federal-state health insurance program is states’ second biggest cost and 10 million people have filed for unemployment over the last two weeks,” Beyer said. “The last thing we want states to do is reduce Medicaid eligibility in the middle of a public health crisis.”

Beyer continued, “Congress’s fourth legislative response must increase aid to state and local governments and allow the Federal Reserve to purchase long-term state and local debt.”