The worst economic catastrophe ever happened in the U.S. since the Great Depression of the 1930s continues to leave millions of workers jobless, and coping with food and housing insecurity. A very dark winter is arriving for the American working-poor, one that will likely lead 6 million households to homelessness. Latest studies forecast that a tidal wave of evictions could push up to 40 million people to the streets as soon as the CDC’s eviction moratorium expires on January 1st.
As rental delinquencies continue to soar, landlords are already filing eviction requests, and in the absence of further federal aid, deep-in-debt renters might end up in the streets in the coldest season of the year when a highly contagious respiratory infection is rapidly spreading and fatally affecting hundreds of thousands of Americans. For that reason, in this video, we expose one of the most tragic and calamitous situations our citizens are about to face.
The U.S. Census Bureau conducted a survey that found that up to 6 million households are on the brink of eviction or foreclosure. As soon as the CDC’s eviction moratorium expires on January 1st, 32.5% of the 17.8 million adults currently behind rent or mortgage payments could be pushed to the streets. Additionally, according to research by the Aspen Institute, nearly 40 million Americans could face eviction over the next several months.
Considering that the CARES Act is set to expire on December 31st, 12 million workers are about to lose access to their emergency unemployment benefits, consequently they will likely become unable to afford their rental payments and add to the already colossal rate of delinquent renters. Also, a recent Bank of America report indicated that the end of the assistance could be a drag of up to 1.5% to growth in 2021 first-quarter.
The eviction moratorium, mortgage forbearance programs, and suspension of student loan payments have helped to ease the financial stress of the American working-poor. The most worrying effect that will be brought by the expiration of the many CARES programs is the removal of financial safety nets for them.
The flawed CDC protections haven’t actually stopped landlords from expelling families to try to find paying renters, because eventually, someone has to pay for this immense debt. That is to say, the CDC’s policy doesn’t translate into debt forgiveness, and billions in back rent and late fees piled up throughout the current economic recession, and now the alarming rates of default are also acting as a catalyst to the severe housing crisis that started to unfold this year. Nevertheless, the biggest suffering isn’t being experienced by big corporations, private equity, and banks but by average Americans.
Millions of them could potentially end up on the streets very soon. However, this complex problem could be solved with simple measures, but economists are arguing that the new administration may not look at this issue with the urgency needed. After meeting with corporate executives, Democratic President-elect Joe Biden clarified in his speech that the top concern that will be addressed as the first action of his mandate is “to get the economy back on track”.
Not once did he mentioned a pressing need to stop the spread of the virus, feed the hungry, provide relief, or house the homeless. He didn’t make any declarations regarding a renewal of the unemployment benefits in the CARES Act or extending eviction moratoriums. That’s because, no matter who enters the White House, all policies target ensuring the flow of profits to big corporations and Wall Street.
At the end of the day, both parties see unemployment benefits as a “disincentive” for workers to get back on low-paying jobs amid a raging sanitary outbreak. But the only real solution to this rental crisis and many other financial crisis Americans are undergoing is more assistance from the federal government. That means the issuance of stimulus money that instead of getting swallowed by the financial markets actually assists people to pay off their debt.
If renters have money to pay off their landlords, this tidal wave of evictions could be stopped. Eviction is an expensive, frustrating, and emotionally fraught step that damages both renters and landlords, particularly considering that finding a replacement paying tenant amid a deteriorating economic collapse can be incredibly hard.
Unfortunately, millions are soon going to be caught up by this unprecedented catastrophe that is about to leave our citizens on the streets, vulnerable to a fatal disease, and in the middle of a tragic hunger crisis. And all of it could have been avoided.

Epic Economist

View all posts