America: Welfare Queen
Photo by Julian Myers from Unsplash
Financial experts predict there will be an unprecedented catastrophic impact on the American economy catalyzed by the Covid-19 (coronavirus) pandemic. Historically, when white America experienced an impact from a recessed economy, black America felt the burden twice as hard. Therefore, at the end of this article, you will find financial resources that may help alleviate your economic burden, specifically for black freelancers and entrepreneurs.
The American philosophy to "work hard", and "pull yourselves up by your bootstraps" gets thrown out of the window the minute corporations need a bailout.
Where's the bail out for individuals and families in their time of need? Not just in a pandemic, but in true day-to-day life. Americans are working 50 plus years just to be one crisis away from losing it all. Where's the bailout for people planning to retire this year, and their 401ks have diminished? Where's the bailout for gig workers who need more than a one time $1200 check until clients pour in again?
Personal Finance experts run on a platform of "save for a rainy day"; and "keep expenses lower than your income"; does that only apply to individuals and families? Can that methodology not be applied to businesses and corporations?
I'm old enough to remember when oil prices surged and airlines raised their prices to compete; they also reduced service (food, beverage, legroom). Then oil prices declined, prices stayed up, service stayed down and extra cash flow was used for stock buy-backs.
Trickle-Down Economics
There's this methodology that if we give to the top (corporations), then they'll give to those at the bottom (employees). Time and time again we see corporate greed keep those funds at the top; salaries in the millions, bonuses in the millions, quarterly dividends worth a measly few dollars per share, insufficient medical plans, and let's not forget the move from pensions to 401ks. All while employees make a measly $7.25/hour, with barely enough hours to get medical, or pay high premiums. They have to 'invest' in their 401k that can potentially be wiped out in the face of a crisis where corporations and government are not prepared.
Americans can not afford a $400 emergency.
Yet, the government does nothing about it.
Corporations can not afford a pandemic.
Yet, the government bails them out.
Stimulus
A one-time $1200 check will not "stimulate" the country in a meaningful way. The COVID-19 pandemic is exacerbated in cities and urban communities where people dwell on top of each other in 700 sq ft apartments for $3000/month. God forbid, if laid off, unemployment will cover a fraction of what once was a salary, please explain, what is that $1200 supposed to do?
Better yet, for those that fought their way to the middle class… you know "the American dream" with a house, a car, and some kids. They may not even qualify for that full $2400. Again, what is the stimulus check supposed to do?
Is the thought that individuals run down to their local retailer and spend on new clothes? Or maybe it's to purchase necessities, like groceries or prescriptions? Or pay one more month of their 30 year mortgage - before ultimately having to foreclose because the government bailed out the employer, not the employee who may get laid off after the "provisions".
“Historically, when white America experienced an impact from a recessed economy, black America felt the burden twice as hard.”
Parting Thoughts
Corporations and government's reaction to COVID-19 will go down in history as the second worst moment in time. If we don't change the way we govern, do business, and treat people, America will always remain on welfare. She will not be able to pull herself up by the bootstraps because as history proves, the present is demonstrating, and our future projects; 'success' will always be on the backs of the hardest working and most deserving.
On that note, corporations… it's a new age. Your consumers are much savvier than you give them credit for. We have changed the way we consume forcing you to keep up with us. We will never forget. Can't wait to see what you do with your handout. We're all watching.
Resources
Freelancers Relief Fund offers financial assistance of up to $1,000 per freelance household to cover lost income and essential expenses not covered by government relief programs, including:
Food/food supplies
Utility payments
Cash assistance to cover income loss
You may apply for Freelancer Relief funding, here.
Click here if you would like to donate to the freelancers Relief Fund.
U.S Small Business Association’s Economic Injury Disaster Loan* - In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
The U.S Small Business Administration’s COVID-19 Economic Injury Disaster Loan Application is now open and can be accessed here.
*This loan will not have to be repaid.
Hello Alice provides key resources to develop our business and helps us focus on what really matters. The organization is offering $10,000 grants being distributed immediately to small business owners impacted by coronavirus, as part of our broader mission to ensure Business for All. In addition to funding, grant recipients will receive ongoing support from the Hello Alice community. You may apply here.