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The Financial Impact Social Distancing has on U.S. Residents

By Kirsten Collins

Updated 4/3/20

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According to Worldometer, as of April 3, 2020, COVID-19 has left approximately 273,880 infected and 7,077 dead in the United States alone. Health experts insist that this is only the tip of the iceberg, as we can't be entirely sure due to insufficient testing. By this point, U.S residents are well past frightened; discerning those infected from the rest of the population has become very difficult.

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In response to the urgency of this pandemic, several states within the country (e.g., New York, New Jersey, California, and Connecticut) have enforced the practice of social distancing. This method limits or prevents person-to-person contact, reducing the spread of the virus. Consequently, until further notice, many schools and non-essential businesses (e.g., restaurants, bars, casinos, movie theaters, hotels, and gyms) have been shut down.

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While this approach appears to be beneficial for the health of all U.S residents at first glance, its financial disadvantages further complicate the process of containing the virus.

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https://jmwilliamslaw.com/practice-areas/consumer-bankruptcy-information/

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According to the New York Times, over three million U.S residents filed for unemployment benefits the week of March 15 due to the closing of numerous businesses. Therefore, many families are currently left destitute during this crisis when financial resources for essentials are needed the most.

 

It's no better for the majority of U.S residents who remain employed. Many have been faced with deciding whether they should provide for their families or stay home without compensation.

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In a press conference, Kamala Harris, the U.S Senator, stated that “two-thirds of low-income workers do not have paid sick leave.” More than half of the population will have no source of income provided that they call out sick from work due to COVID-19.

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She further stated that it is reasonable for the infected to choose to go to work to support their families, despite the health risks they impose on others. This occurrence has most likely contributed to the spread of the virus already.

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Harris advised Republicans to pass the paid sick leave bill. Doing so will enable infected employees to receive income to provide for their families, although they are no longer employed. She asserted that this is an effective way to ensure that those who are infected stay at home and prevent further spreading the virus.

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Harris openly acknowledged that her position is to serve the public and claimed she, as well as other government officials, would be doing everyone a disservice by leaving families with no choice but to potentially endanger themselves and others by doing the obvious. How else would the public be able to feed, clothe, bathe, and provide shelter for their own families?

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According to CNBC, to rectify the public’s financial predicament, the Trump administration devised a relief plan to pay adults $1,000 and eligible children $500. Steven Mnuchin, the U.S Treasury Secretary, claimed that once this proposal is approved by Congress, “we get this [the payments] out in three weeks. And then, six weeks later, if the President still has a national emergency, we’ll deliver another $3,000 [the amount estimated for a household of four].”

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Fortunately, the Senate approved this stimulus package, which was then immediately signed into law by President Trump on March 27, 2020, reported CNBC. In addition, the payments have been increased to $1,200 for some adults. Under this upgrade, the ideal family of four (two adults and two children) can receive up to $3,400.

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The stimulus package may be of aid to all recipients; however, it may not be enough for all. Visit this website to see how you and your family qualify for the stimulus package, as eligibility varies depending on many factors (e.g., unemployment and salary).               

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