Child Poverty Soared, Incomes Declined When US Covid Supports Ended
The dreadful economic math of the end of the pandemic is revealed in new data from the U.S. Census Bureau: As covid benefits wrapped up in 2022, child poverty more than doubled and median household income fell. But income inequality declined for the first time since 2007.
AP:
Child Poverty In The US Jumped And Income Declined In 2022 As Coronavirus Pandemic Benefits Ended
Child poverty in the United States more than doubled and median household income declined last year when coronavirus pandemic-era government benefits expired and inflation kept rising, according to figures released Tuesday by the U.S. Census Bureau. At the same time, the official poverty rate for Black Americans dropped to its lowest level on record, and income inequality declined for the first time since 2007, when looking at pre-tax income, due to income declines in the middle and top income brackets. (Schneider, 9/12)
Axios:
The End Of Biden's Pandemic-Era Programs Increased Poverty
The expected spike in poverty — particularly child poverty — between 2021 and 2022 shows the impact of letting major pandemic-era safety net program expansions expire, a policy experiment with no precedent in the U.S. The pandemic programs were enacted as temporary measures. But their expiration still stings for the Americans who experienced an economic boost only to lose it — and there's more to come. (Owens, 9/13)
On pandemic aid fraud and unemployment funds —
Politico:
Unemployment Fraud Hit $100-135B During Covid, Watchdog Says
As much as $135 billion in unemployment insurance benefits may have been lost to fraud during Covid-19, according to a Government Accountability Office report released Tuesday, more than double an earlier estimate. The federal watchdog estimated that fraudulent payments may have amounted to between 10 and 15 percent of the $900 billion spent on UI between April 2020 and May 2023, when the federal public health emergency ended. (Niedzwiadek, 9/12)
The New York Times:
Pandemic Fraud May Have Robbed Unemployment Insurance Of $135 Billion
The Labor Department, which oversees federal unemployment insurance programs, expressed concerns about the report’s methodology in a letter to G.A.O. officials and argued that the level of fraud was likely overstated. Officials pointed to efforts that have since been taken to deter fraud, and said the “enormous task” of doling out the funds was made “only more daunting by the decades-long chronic underfunding” of the unemployment benefits system. “As a result, state agencies were unprepared for the extraordinary spike in the number of claims to be processed each week,” Brent Parton, a principal deputy assistant secretary at the department, wrote in the letter. (Ngo, 9/12)
In related news about homelessness —
The Wall Street Journal:
Why More Baby Boomers Are Sliding Into Homelessness
Baby boomers, who transformed society in so many ways, are now having a dramatic effect on homelessness. Higher numbers of elderly living on the street or in shelters add complications and expenses for hospitals and other crisis services. The humanitarian problem is becoming a public-policy crisis, paid for by taxpayers. (Najmabadi, 9/12)
