Without a federal supplement, many of the 30 million Americans relying on unemployment benefits will need to get by on regular state unemployment benefits, which often total a few hundred dollars a week or less, the New York Times reported. For many families, that will not be enough to pay the rent, stave off hunger or avoid mounting debt that will make it harder to climb out of the hole. Households and the broader economy are particularly vulnerable at this moment. Eviction moratoriums are expiring or have expired in much of the country. The Paycheck Protection Program, which helped thousands of small businesses to retain workers, ended Saturday. There are already signs that the economy has slowed down this summer as virus cases have surged in much of the country. On Friday, the Labor Department reported a net gain of 1.8 million jobs in July, a smaller increase than in May or June. Many economists warn that layoffs could begin rising again without more government support. Food banks say they are bracing for a new wave of demand. The economic crisis caused by the pandemic has disproportionately affected low-wage workers who have little in savings. Research from the last recession found that when unemployment benefits ran out, people cut their spending on food, medicine and other necessities, suggesting they were able to do little to prepare for the drop in income. The more generous benefits offered during this recession may have allowed families to save some money, but those savings won’t last long, particularly when food prices are rising at the fastest pace in years.
