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Covid-19’s Economic Pain Is Universal. But Relief? Depends on Where You Live Covid-19’s Economic Pain Is Universal. But Relief? Depends on Where You Live
(2 months later)
In a Queens apartment, a laid-off busboy has no idea if he will make next month’s rent or feed his family. An out-of-work waitress in Amsterdam, though, can count on the government to cover 90 percent of her wages. As a Malaysian florist anxiously burns through her savings, cafe owners in Brussels receive about $4,300 to make up for lost revenue.In a Queens apartment, a laid-off busboy has no idea if he will make next month’s rent or feed his family. An out-of-work waitress in Amsterdam, though, can count on the government to cover 90 percent of her wages. As a Malaysian florist anxiously burns through her savings, cafe owners in Brussels receive about $4,300 to make up for lost revenue.
Weeks of layoffs and lockdowns have made clear that poor and working-class people will bear a disproportionate share of the pain from the coronavirus pandemic. In cities around the world, work has stopped. Bills have not. And no end is in sight. But the first wave of government rescue packages has exposed another reality: The pain will depend largely on where people live.Weeks of layoffs and lockdowns have made clear that poor and working-class people will bear a disproportionate share of the pain from the coronavirus pandemic. In cities around the world, work has stopped. Bills have not. And no end is in sight. But the first wave of government rescue packages has exposed another reality: The pain will depend largely on where people live.
The disparity reflects not only the world’s differing safety nets, but also the contrasting views of a government’s role in a crisis. Should it pump cash into the economy? Bail out businesses? Replace lost income for workers? Those questions are at the heart of a protracted debate over a nearly $2 trillion rescue package being negotiated in Washington.The disparity reflects not only the world’s differing safety nets, but also the contrasting views of a government’s role in a crisis. Should it pump cash into the economy? Bail out businesses? Replace lost income for workers? Those questions are at the heart of a protracted debate over a nearly $2 trillion rescue package being negotiated in Washington.
“I don’t know what I’m going to do. Oh my God,” said Jose Luis Candia, 34, who lost his two jobs busing tables at high-end Manhattan restaurants. His wife gave birth to their third daughter a month ago. Friends have donated money for groceries. He does not know how he will pay rent or what will happen if he cannot.“I don’t know what I’m going to do. Oh my God,” said Jose Luis Candia, 34, who lost his two jobs busing tables at high-end Manhattan restaurants. His wife gave birth to their third daughter a month ago. Friends have donated money for groceries. He does not know how he will pay rent or what will happen if he cannot.
Half a world away, in Copenhagen, workers in Mr. Candia’s situation face a different reality. The Danish government has promised to cover 75 percent to 90 percent of salaries if businesses do not lay off their employees. Better to pay to keep people employed than to pay for the disruption caused by mass layoffs and unemployment, the government has said.Half a world away, in Copenhagen, workers in Mr. Candia’s situation face a different reality. The Danish government has promised to cover 75 percent to 90 percent of salaries if businesses do not lay off their employees. Better to pay to keep people employed than to pay for the disruption caused by mass layoffs and unemployment, the government has said.
“I live from paycheck to paycheck,” said Sebastian Lassen, 25, a coffee shop manager in Copenhagen. He feared the uncertainty, he added, but never considered that the government would allow so many workers to fall into poverty. “We didn’t come to the thought that, ‘OK, maybe we’ll be on the street,’” he said.“I live from paycheck to paycheck,” said Sebastian Lassen, 25, a coffee shop manager in Copenhagen. He feared the uncertainty, he added, but never considered that the government would allow so many workers to fall into poverty. “We didn’t come to the thought that, ‘OK, maybe we’ll be on the street,’” he said.
The Netherlands will pay up to 90 percent of wages for companies hit hard by the pandemic, with extra provisions being developed for restaurants. “Everybody here believes that the government will take responsibility for the situation, and I believe that too,” said Athina Ainali, a 25-year-old waitress for one of Amsterdam’s many shuttered restaurants.The Netherlands will pay up to 90 percent of wages for companies hit hard by the pandemic, with extra provisions being developed for restaurants. “Everybody here believes that the government will take responsibility for the situation, and I believe that too,” said Athina Ainali, a 25-year-old waitress for one of Amsterdam’s many shuttered restaurants.
Washington is divided over how to dole out recovery aid. Proposals have included one-time $1,200 payments. The biggest chunk of money, about $425 billion, is set aside for central bankers to use largely as they see fit. Economists say they expect that will include buying corporate debt and stabilizing financial markets. Democrats say the proposals do not do enough to expand unemployment benefits, provide food assistance or relieve student debt.Washington is divided over how to dole out recovery aid. Proposals have included one-time $1,200 payments. The biggest chunk of money, about $425 billion, is set aside for central bankers to use largely as they see fit. Economists say they expect that will include buying corporate debt and stabilizing financial markets. Democrats say the proposals do not do enough to expand unemployment benefits, provide food assistance or relieve student debt.
New York restaurant owners and workers are calling for aggressive action, including doubling unemployment benefits (which currently cover only about 50 percent of wages, even for minimum-wage employees) and providing rent abatement for displaced employees.New York restaurant owners and workers are calling for aggressive action, including doubling unemployment benefits (which currently cover only about 50 percent of wages, even for minimum-wage employees) and providing rent abatement for displaced employees.
What distinguishes the United States from other countries “is not the nature of the bailouts. It’s the underlying structure,” said Carol Graham, a senior fellow at the Brookings Institution who studies safety nets. “People are more vulnerable from the get-go, even in normal times. You throw a shock like this at the system? It’s about as bad as it could get.”What distinguishes the United States from other countries “is not the nature of the bailouts. It’s the underlying structure,” said Carol Graham, a senior fellow at the Brookings Institution who studies safety nets. “People are more vulnerable from the get-go, even in normal times. You throw a shock like this at the system? It’s about as bad as it could get.”
American workers face extra anxiety over medical costs. The United States, unlike most of the developed world, does not guarantee health care.American workers face extra anxiety over medical costs. The United States, unlike most of the developed world, does not guarantee health care.
While countries like Denmark have famously robust safety nets, even the Conservative government in Britain has, after years of austerity, adopted a similar approach. “For the first time in our history, the government is going to step in and pay people’s wages,” the British chancellor of the Exchequer, Rishi Sunak, said last week. The plan, which is still being developed, will pay up to about $2,900 a month to workers who have lost hours but are not laid off.While countries like Denmark have famously robust safety nets, even the Conservative government in Britain has, after years of austerity, adopted a similar approach. “For the first time in our history, the government is going to step in and pay people’s wages,” the British chancellor of the Exchequer, Rishi Sunak, said last week. The plan, which is still being developed, will pay up to about $2,900 a month to workers who have lost hours but are not laid off.
[Update: Boris Johnson, U.K. Prime Minister, has the coronavirus.][Update: Boris Johnson, U.K. Prime Minister, has the coronavirus.]
The center-right government in Germany will spend more than $40 billion to help small businesses cover basic needs to stay afloat during the crisis. That is in addition to a program aimed at larger companies, called “kurzarbeit,” or “short-time working,” that covers lost wages for employees who are sent home, to avoid laying them off. Economists expect about two million workers to receive aid under the program, more than during the financial crisis a decade ago.The center-right government in Germany will spend more than $40 billion to help small businesses cover basic needs to stay afloat during the crisis. That is in addition to a program aimed at larger companies, called “kurzarbeit,” or “short-time working,” that covers lost wages for employees who are sent home, to avoid laying them off. Economists expect about two million workers to receive aid under the program, more than during the financial crisis a decade ago.
“We have a security net, and people don’t fall below the security net,” said Dierk Hirschel, the chief economist of ver.di, one of Germany’s largest trade unions. “But people are going to lose income, and in a traumatic way.”“We have a security net, and people don’t fall below the security net,” said Dierk Hirschel, the chief economist of ver.di, one of Germany’s largest trade unions. “But people are going to lose income, and in a traumatic way.”
The German development bank, KfW, has promised an all-but-unlimited supply of business loans. “There will be no upper limits for the amount of credit that the KfW can give out,” Peter Altmaier, the minister of the economy, said.The German development bank, KfW, has promised an all-but-unlimited supply of business loans. “There will be no upper limits for the amount of credit that the KfW can give out,” Peter Altmaier, the minister of the economy, said.
Even with the rush to save jobs, uncertainty remains. Britain’s plan may come too late for workers who have already been laid off. If they cannot find jobs soon, they will most likely fall into the nation’s welfare system, which can pay as little as $300 a month. “I do not know where to go from here,” said Delphine Thomas, 20, who was laid off from a movie theater in Liverpool.Even with the rush to save jobs, uncertainty remains. Britain’s plan may come too late for workers who have already been laid off. If they cannot find jobs soon, they will most likely fall into the nation’s welfare system, which can pay as little as $300 a month. “I do not know where to go from here,” said Delphine Thomas, 20, who was laid off from a movie theater in Liverpool.
South Korea’s employee-retention program covers 70 percent of wages or more, and the government recently loosened the rules to make more businesses eligible. But part-time workers, contractors and the self-employed receive fewer protections. Some may be eligible for one-time cash payments. Labor advocates want those workers to have the same benefits as full-time employees.South Korea’s employee-retention program covers 70 percent of wages or more, and the government recently loosened the rules to make more businesses eligible. But part-time workers, contractors and the self-employed receive fewer protections. Some may be eligible for one-time cash payments. Labor advocates want those workers to have the same benefits as full-time employees.
Updated June 5, 2020
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Business owners, too, face uneven support depending on the country. Elias Calcoen and his partner opened a cafe in Brussels eight months ago. It has been closed for more than a week, but the city’s government is offering small businesses immediate $4,300 payments, plus $1,300 a month in federal aid for displaced self-employed workers.Business owners, too, face uneven support depending on the country. Elias Calcoen and his partner opened a cafe in Brussels eight months ago. It has been closed for more than a week, but the city’s government is offering small businesses immediate $4,300 payments, plus $1,300 a month in federal aid for displaced self-employed workers.
“We have no kids, we are in good health and the Belgian government is not leaving us by ourselves,” Mr. Calcoen said. “There are many people who are in a much worse position.”“We have no kids, we are in good health and the Belgian government is not leaving us by ourselves,” Mr. Calcoen said. “There are many people who are in a much worse position.”
Brenda James-Leong, a florist in the Malaysian capital, Kuala Lumpur, says she has been burning through savings while her store is closed. The Malaysian government has offered monthly assistance to the unemployed and lump payments to workers in certain sectors. “If the government is doing anything for small businesses like mine, it has not been communicated as of now,” she said.Brenda James-Leong, a florist in the Malaysian capital, Kuala Lumpur, says she has been burning through savings while her store is closed. The Malaysian government has offered monthly assistance to the unemployed and lump payments to workers in certain sectors. “If the government is doing anything for small businesses like mine, it has not been communicated as of now,” she said.
Such apprehension is common, even in countries with generous aid programs. Ursula Waltemath, who owns Restaurant Brace in Copenhagen with her husband, has converted from fine dining to takeout. With schools closed, their 3-year-old daughter shadows them everywhere. At this rate, she figures they can survive three months, even with the government paying a portion of salaries.Such apprehension is common, even in countries with generous aid programs. Ursula Waltemath, who owns Restaurant Brace in Copenhagen with her husband, has converted from fine dining to takeout. With schools closed, their 3-year-old daughter shadows them everywhere. At this rate, she figures they can survive three months, even with the government paying a portion of salaries.
“It sounds amazing, and it is, to have this help,” she said. “But even 25 percent of all employee salaries, and rent and basic expenses, is a fortune if you have zero income.”“It sounds amazing, and it is, to have this help,” she said. “But even 25 percent of all employee salaries, and rent and basic expenses, is a fortune if you have zero income.”
Reporting was contributed by Anna Schaverien, Su-Hyun Lee, Jack Ewing and Melissa Eddy.Reporting was contributed by Anna Schaverien, Su-Hyun Lee, Jack Ewing and Melissa Eddy.