$1,200 may be enough in Mitch McConnell's hometown of Louisville, but not in most US cities
By Kenneth Romero, Opinion Contributor — 08/02/20 02:00 PM EDT
The COVID-19 crisis has vividly accentuated the precarious economic situation of paycheck-to-paycheck living for millions of low- and middle-income Americans, even professionals, in major urban areas, especially renters. The CARES Act’s relief payments of up to $1200/$2400 failed to alleviate their financial burden because Congress neglected to adjust payment amounts and qualifying income thresholds for the significant geographic differences in living costs across America. This blindness to actual costs has plagued federal policymaking for decades. But, since the next round of relief seems to be approaching the coveted must-pass status and the August recess is fast approaching, Congress has a unique opportunity to start to remedy this ongoing unfairness.
The higher cost of big city living affects people of every race and ethnicity, and people of color, especially Latinos, have felt the coronavirus economic sting more keenly. One of the major reasons is that large cities are more diverse than the rest of the country. For example, the monthly median rents in San Diego (32 percent Hispanic -- $1,993), New York City (29 percent Hispanic -- $1,997) and Miami (45 percent Hispanic -- $1,641) are almost double, or more, those in Louisville (5 percent Hispanic -- $1,020), Sioux Falls (5 percent Hispanic - $976) or Casper (8.3 percent Hispanic -- $1.087). Nominally higher incomes partially make-up the difference, but many households in high-cost urban areas were unfairly denied COVID-19 relief payments despite their income barely covering their reasonable expenses, and most of those who got money did not receive enough to cover one month’s rent. Conversely, households with the same standard of living in other areas of the country received enough to cover almost two months’ rent.
Without Congressional relief, experts expect an oncoming wave of millions of evictions as the postponing moratoriums expire. Its concomitant homelessness and ability-to-work crisis will make the economic distress up to now seem like the amuse-bouche for a nightmarish 12-course banquet of all the dishes you most dislike. It is hard to overstate the long-term negative impacts of eviction. This is why federal rent control was one of the major promises of almost every congressional Democratic primary winner in New York City late last month, including newcomers like Ritchie Torres who made it a campaign centerpiece, and veterans like Rep. Alexandria Ocasio-Cortez who has consistently harped on cost-of-living issues. It is not a matter of socialism. It is a matter of understanding the needs of their constituents.
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https://thehill.com/blogs/congress-blog/economy-budget/510198-1200-may-be-enough-in-mitch-mcconnells-hometown-of
