This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/04/22/business/economy/coronavirus-budget-savings.html
The article has changed 15 times. There is an RSS feed of changes available.
| Version 12 | Version 13 |
|---|---|
| Food, Rent, Health Insurance? Tough Choices in Pandemic Economy | Food, Rent, Health Insurance? Tough Choices in Pandemic Economy |
| (7 days later) | |
| Two days before learning that she would lose her job, Lissa Gilliam spent hundreds of dollars online on baby products. | Two days before learning that she would lose her job, Lissa Gilliam spent hundreds of dollars online on baby products. |
| A 37-year-old expectant mother, Ms. Gilliam had planned to ask local parents in Seattle for used strollers and secondhand onesies in a bid to reduce waste. But as the coronavirus pandemic ravaged the area, new items delivered in boxes seemed a safer bet. | A 37-year-old expectant mother, Ms. Gilliam had planned to ask local parents in Seattle for used strollers and secondhand onesies in a bid to reduce waste. But as the coronavirus pandemic ravaged the area, new items delivered in boxes seemed a safer bet. |
| She figured she could afford the splurge, earning $50 an hour as a full-time contractor designing educational curriculums for a nonprofit. But then, on April 2, her employer slashed her hours and told her that her contract would end in early May — a few weeks before she is to give birth. | She figured she could afford the splurge, earning $50 an hour as a full-time contractor designing educational curriculums for a nonprofit. But then, on April 2, her employer slashed her hours and told her that her contract would end in early May — a few weeks before she is to give birth. |
| Suddenly, like many others, Ms. Gilliam became hyperaware of her expenses. She and her husband, a high school physics teacher, now take a painful daily tally of their financial priorities: Is that $5 monthly web magazine subscription really necessary? How much does watering the garden cost? When will they need to tap their paltry savings? | Suddenly, like many others, Ms. Gilliam became hyperaware of her expenses. She and her husband, a high school physics teacher, now take a painful daily tally of their financial priorities: Is that $5 monthly web magazine subscription really necessary? How much does watering the garden cost? When will they need to tap their paltry savings? |
| “We’re OK for now,” she said. “But the bottom may fall out from under us.” | “We’re OK for now,” she said. “But the bottom may fall out from under us.” |
| As millions of Americans lose jobs, take pay cuts, close businesses and absorb family members into their homes, they are being forced to rethink where their money goes. Even before the scramble for new jobs can begin, people are cajoling creditors, looking for gig work or simply cutting back to get through the first few disorienting weeks. | As millions of Americans lose jobs, take pay cuts, close businesses and absorb family members into their homes, they are being forced to rethink where their money goes. Even before the scramble for new jobs can begin, people are cajoling creditors, looking for gig work or simply cutting back to get through the first few disorienting weeks. |
| For some, the question is as simple as whether to spring for a jigsaw puzzle to keep from going corona crazy, and how much to tip the person who delivers it. But for many others, the stakes are far higher: a good credit score sacrificed to pay off certain bills before others, or ramen dinners rationed so that cash for groceries can be repurposed for an emergency fund. | For some, the question is as simple as whether to spring for a jigsaw puzzle to keep from going corona crazy, and how much to tip the person who delivers it. But for many others, the stakes are far higher: a good credit score sacrificed to pay off certain bills before others, or ramen dinners rationed so that cash for groceries can be repurposed for an emergency fund. |
| To save money, heaters have been turned down, clothing sales ignored and auto insurance policies canceled. Retail sales tumbled 8.7 percent in March, by far the largest monthly decline ever recorded. Plans to visit Disneyland, which is closed, turned into at-home re-enactments and long sessions with Disney Plus, Animal Crossing and Zoom. Rents are going unpaid as people spend weeks waiting for government aid to arrive. | To save money, heaters have been turned down, clothing sales ignored and auto insurance policies canceled. Retail sales tumbled 8.7 percent in March, by far the largest monthly decline ever recorded. Plans to visit Disneyland, which is closed, turned into at-home re-enactments and long sessions with Disney Plus, Animal Crossing and Zoom. Rents are going unpaid as people spend weeks waiting for government aid to arrive. |
| “An economic shock like this could have a long-term impact on people who have traditionally felt like they were being cautious, that they weren’t profligate with their money, but didn’t have to worry about paying for rent or affording food,” said Stephanie Aaronson, the director of economic studies at the Brookings Institution. “They might have more debt, which will make it harder to spend in the future, or they might just feel less secure, which could boost savings and potentially dampen the recovery.” | “An economic shock like this could have a long-term impact on people who have traditionally felt like they were being cautious, that they weren’t profligate with their money, but didn’t have to worry about paying for rent or affording food,” said Stephanie Aaronson, the director of economic studies at the Brookings Institution. “They might have more debt, which will make it harder to spend in the future, or they might just feel less secure, which could boost savings and potentially dampen the recovery.” |
| Ms. Gilliam and her husband are waiting for Washington State to make jobless benefits available to contractors through a federal assistance program, and hope to take advantage of a state program for maternity aid once their daughter is born. A $15,000 construction project planned for the rear of their house is on hold. They canceled their gym membership, their Hulu streaming service, multiple newspapers and even the Adobe Acrobat software that Ms. Gilliam uses for design work. | Ms. Gilliam and her husband are waiting for Washington State to make jobless benefits available to contractors through a federal assistance program, and hope to take advantage of a state program for maternity aid once their daughter is born. A $15,000 construction project planned for the rear of their house is on hold. They canceled their gym membership, their Hulu streaming service, multiple newspapers and even the Adobe Acrobat software that Ms. Gilliam uses for design work. |
| “We’re trying not to spend money,” she said. “At a minimum, we need to hold on to our house.” | “We’re trying not to spend money,” she said. “At a minimum, we need to hold on to our house.” |
| Even when the economy was strong, many Americans were in a precarious financial position, ill prepared to weather even minor disruptions and often weighed down by debt. | Even when the economy was strong, many Americans were in a precarious financial position, ill prepared to weather even minor disruptions and often weighed down by debt. |
| On the whole, Ms. Aaronson said, household finances “were in relatively good condition as of six weeks ago — they were actually pretty healthy.” Now, she said, “a much broader swath of households are experiencing a complete loss of income compared to what we typically see in a recession.” | On the whole, Ms. Aaronson said, household finances “were in relatively good condition as of six weeks ago — they were actually pretty healthy.” Now, she said, “a much broader swath of households are experiencing a complete loss of income compared to what we typically see in a recession.” |
| Those people are now relying on good will from strangers and programs from corporations and the government to stay upright. Foreclosures and related evictions have been suspended. Borrowers have been offered student loan relief. Banks, automakers, utilities and other companies have set up payment deferral programs. | Those people are now relying on good will from strangers and programs from corporations and the government to stay upright. Foreclosures and related evictions have been suspended. Borrowers have been offered student loan relief. Banks, automakers, utilities and other companies have set up payment deferral programs. |
| Before the pandemic, Carol Cruz’s private health insurance plan cost her $840 a month — up from less than $500 four years ago. The bill ate up most of her $1,200 monthly paycheck, exceeding even the $600 monthly payment on the house she shares with her husband and their 17-year-old granddaughter in Tulare, Calif. | Before the pandemic, Carol Cruz’s private health insurance plan cost her $840 a month — up from less than $500 four years ago. The bill ate up most of her $1,200 monthly paycheck, exceeding even the $600 monthly payment on the house she shares with her husband and their 17-year-old granddaughter in Tulare, Calif. |
| On March 29, she was furloughed from her part-time job as a mental health therapist until at least the end of May. Other than the state unemployment benefits she hopes to receive soon, Ms. Cruz, 62, no longer has an income. | On March 29, she was furloughed from her part-time job as a mental health therapist until at least the end of May. Other than the state unemployment benefits she hopes to receive soon, Ms. Cruz, 62, no longer has an income. |
| So she got on the phone for at least three hours a day, asking for leniency from the health insurance provider, her mortgage lender and the credit union that holds the loan for her husband’s Chevrolet truck. All offered her more flexible terms, including 90-day grace periods and pay-what-you-can options. (Some creditors, she said, were less willing to negotiate.) | So she got on the phone for at least three hours a day, asking for leniency from the health insurance provider, her mortgage lender and the credit union that holds the loan for her husband’s Chevrolet truck. All offered her more flexible terms, including 90-day grace periods and pay-what-you-can options. (Some creditors, she said, were less willing to negotiate.) |
| The adjustments help keep the bills manageable, Ms. Cruz said. But her grocery costs have doubled, now that the price of eggs has soared and her granddaughter is no longer having free lunches at school. | The adjustments help keep the bills manageable, Ms. Cruz said. But her grocery costs have doubled, now that the price of eggs has soared and her granddaughter is no longer having free lunches at school. |
| “I don’t know about my future,” Ms. Cruz said. “I’m not letting myself think about tomorrow, just about whether we have food today and money in the bank.” | “I don’t know about my future,” Ms. Cruz said. “I’m not letting myself think about tomorrow, just about whether we have food today and money in the bank.” |
| But some people, many of whom have never seriously budgeted, are now mapping out strict spending schedules for the next few months. | But some people, many of whom have never seriously budgeted, are now mapping out strict spending schedules for the next few months. |
| After being furloughed in mid-March from her bartending and serving job at a Minneapolis concert hall, Krissy Calbert, 26, went from earning $300 in tips some nights to having no income as she waited for government aid. | After being furloughed in mid-March from her bartending and serving job at a Minneapolis concert hall, Krissy Calbert, 26, went from earning $300 in tips some nights to having no income as she waited for government aid. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| 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. | 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. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| 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. | 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. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| 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.) | 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.) |
| 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’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. |
| “It was two weeks of just panic — I was just going off the groceries I already had, trying to ration until money came in,” she said. “You get really creative. You eat little half meals, and you experiment with your seasonings and condiments to try to forget that you’re eating the same thing over and over.” | “It was two weeks of just panic — I was just going off the groceries I already had, trying to ration until money came in,” she said. “You get really creative. You eat little half meals, and you experiment with your seasonings and condiments to try to forget that you’re eating the same thing over and over.” |
| Earlier this month, Ms. Calbert began receiving a weekly infusion of $1,100 from the state. She is now trying to reschedule when monthly bills are due so she can space out the payments: $600 for rent, $75 for her phone, up to $120 for utilities, $60 for streaming services, $200 for credit cards, plus other expenses. | Earlier this month, Ms. Calbert began receiving a weekly infusion of $1,100 from the state. She is now trying to reschedule when monthly bills are due so she can space out the payments: $600 for rent, $75 for her phone, up to $120 for utilities, $60 for streaming services, $200 for credit cards, plus other expenses. |
| “I’m trying to get all of my credit card payments into the same week, so I can have a credit card week, a rent week, a phone week,” Ms. Calbert said. | “I’m trying to get all of my credit card payments into the same week, so I can have a credit card week, a rent week, a phone week,” Ms. Calbert said. |
| She has switched her grocery shopping from Target to Aldi, where, she said, she can afford to splurge on fresh produce and protein. Without health insurance, she is willing spend an extra $30 or $40 on fruits and vegetables in hopes of keeping her immune system strong, she said. | She has switched her grocery shopping from Target to Aldi, where, she said, she can afford to splurge on fresh produce and protein. Without health insurance, she is willing spend an extra $30 or $40 on fruits and vegetables in hopes of keeping her immune system strong, she said. |
| “I can’t take the risk,” Ms. Calbert said. “A hospital bill right now would ruin me.” | “I can’t take the risk,” Ms. Calbert said. “A hospital bill right now would ruin me.” |
| More than half of lower-income adults in the United States say they will struggle to pay bills this month, compared to a quarter of their middle-income counterparts and 11 percent of those in the upper-income tier, according to a survey of nearly 5,000 adults by Pew Research Center. Researchers defined a three-person household earning $37,500 to $112,600 annually as middle-income. Over all, more than half of those who expect a federal stimulus infusion will use most of the money to cover essential expenses, while one in five say they plan to save the funds. | More than half of lower-income adults in the United States say they will struggle to pay bills this month, compared to a quarter of their middle-income counterparts and 11 percent of those in the upper-income tier, according to a survey of nearly 5,000 adults by Pew Research Center. Researchers defined a three-person household earning $37,500 to $112,600 annually as middle-income. Over all, more than half of those who expect a federal stimulus infusion will use most of the money to cover essential expenses, while one in five say they plan to save the funds. |
| To create a financial buffer, many people are hunting for freelance or part-time work. Searches for work-from-home jobs rose 126 percent in March on FlexJobs, while traffic to the site has boomed 58 percent from a year ago. On Upwork, companies are looking for people to provide tech support for their homebound employees and to draft corporate messages about the coronavirus. | To create a financial buffer, many people are hunting for freelance or part-time work. Searches for work-from-home jobs rose 126 percent in March on FlexJobs, while traffic to the site has boomed 58 percent from a year ago. On Upwork, companies are looking for people to provide tech support for their homebound employees and to draft corporate messages about the coronavirus. |
| Lonn Dugan, a digital marketing specialist in Sylvania, Ohio, has seen many clients scaling back their promotional efforts, such as one nonprofit that cut its budget by 90 percent after a major annual event was canceled. But another client, an agricultural supply company, commissioned a major website update, while a local mental health group wanted to ramp up its virtual support groups. | Lonn Dugan, a digital marketing specialist in Sylvania, Ohio, has seen many clients scaling back their promotional efforts, such as one nonprofit that cut its budget by 90 percent after a major annual event was canceled. But another client, an agricultural supply company, commissioned a major website update, while a local mental health group wanted to ramp up its virtual support groups. |
| The pressure on Mr. Dugan, 60, is intense. His workday is three hours longer than it used to be, between his existing clients and his attempts to drum up new business. He and his wife lost a third of their incomes; neither is eligible for government aid. | The pressure on Mr. Dugan, 60, is intense. His workday is three hours longer than it used to be, between his existing clients and his attempts to drum up new business. He and his wife lost a third of their incomes; neither is eligible for government aid. |
| “We’re completely overwhelmed by the shortfall. We can afford groceries and maybe the house and car payments, and that’s it,” he said. “But we’re not alone, and we’re focusing on acceptance as opposed to hand-wringing. We’re taking care of necessities, and that’s enough for right now.” | “We’re completely overwhelmed by the shortfall. We can afford groceries and maybe the house and car payments, and that’s it,” he said. “But we’re not alone, and we’re focusing on acceptance as opposed to hand-wringing. We’re taking care of necessities, and that’s enough for right now.” |
| Still, Mr. Dugan admits being stretched thin emotionally. He misses his wife, even though they are in the same house and she no longer needs to make a two-hour round-trip commute to her health care job. But the couple are so busy trying to stay afloat that they have stopped cooking fresh meals and turn instead to frozen dinners and fast food. | Still, Mr. Dugan admits being stretched thin emotionally. He misses his wife, even though they are in the same house and she no longer needs to make a two-hour round-trip commute to her health care job. But the couple are so busy trying to stay afloat that they have stopped cooking fresh meals and turn instead to frozen dinners and fast food. |
| “We just don’t have time,” he said. “We’re exhausted at the end of the day.” | “We just don’t have time,” he said. “We’re exhausted at the end of the day.” |