What Happens to the Unemployed When the Checks Run Out
Eduardo Porter, economics reporter for The New York Times, presents statistics illustrating the outcomes that will likely result as unemployed workers lose their benefits on December 26 when the final CARES Act programs expire. An analysis from the Century Foundation found that 12 million workers who rely on these federal programs will lose them on the 26th and fewer than three million will be eligible for extended benefits. According to researchers from the University of Chicago, spending on food, clothes, and other nondurable goods will drop 12 percent – nearly twice as much as when unemployed workers lost their jobs and initially started on unemployment insurance. In addition, researchers suggest that co-payments for doctor’s visits will fall 14 percent and spending on groceries will fall 16 percent. A survey from Moody’s Analytics and Morning Consult also showed that nearly 12 million households fear they may not be able to meet their mortgage payments and millions of others can no longer afford their rent.