Trump Recession Deepens as 1.3 Million More File for Unemployment, PPP Still Leaving Small Businesses Behind
WASHINGTON, D.C. – The U.S. economy fell further into recession as 1.3 million more workers entered the unemployment ranks this week. Yet with enhanced benefits set to run out in a matter of days and despite 75% public support for extending them, the President’s allies in Congress are considering drastic reductions as the struggles of out-of-work families compound. And while the Trump SBA’s corrupt and mismanaged Paycheck Protection Program has been extended, lawmakers did not bother to fix the program’s fundamental flaws that allowed 110,000 small businesses to shutter, especially in communities of color.
“The recession continues to wipe out jobs and small businesses, yet the Trump administration’s answer to millions of hurting out-of-work Americans is to ‘find something new,’” said Kyle Herrig, president of Accountable.US. “While nearly one-third of families couldn’t make their housing payment last month, the President’s allies in Congress think now is a good time to gut jobless benefits. Struggling small businesses are still facing the same barriers to aid today as they were three months ago. The economy will not begin to recover until the administration and lawmakers treat struggling workers and small businesses with the same sense of urgency they have treated the wealthy and well-connected.”
WHERE TO START: In addition to immediately extending the CARES Act’s enhanced unemployment benefits, Congress must turn the page on the Small Business Administration’s secretive
More — Not Less — Needs to Be Done as The Trump Recession Gets Worse for Millions of Americans:
- CBNC, July 8: 32% of U.S. households missed their July housing payments
- Axios, July 14: 7% percent [of Black-owned businesses] are very confident they will be able to maintain payroll if no further government relief is provided (Overall: 16%).
- NBC News, 7/7: Millions of Americans going hungry as pandemic erodes incomes and destroys communities. A study from Northwestern University’s Institute for Policy Studies found that the pandemic roughly doubled food insecurity in the United States.
- NBC News, 7/14: Food prices rose in June for sixth-straight month. The larger-than-expected price hike represents a further pain point for millions of American families already living on the edge amid layoffs and lockdowns.
- Washington Post, 7/13: ‘I Can’t Keep Doing This:’ Small-Business Owners Are Giving Up. From June 15 to June 29, the most recent period for which data is available, businesses were closing permanently at a higher rate than in the previous three months.