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Unequal Impact of COVID-19 on Household Financial Stability April 21, 2020, 1pm ET

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Page 1: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Unequal Impact of COVID-19 on Household Financial Stability

April 21, 2020, 1pm ET

Page 2: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Welcome

Guillermo CantorDirector, Applied ResearchProsperity Now

Page 3: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Prosperity

Now’s mission

is to ensure

everyone in our

country has a

clear path to

financial stability,

wealth and

prosperity.

Page 4: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’ financial stability”

2. Share state/local examples of how this issue plays out in various communities

3. Discuss some policy solutions and advocacy opportunities.

Webinar’s goals

Page 5: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Today’s Agenda and Speakers

✓ Report Highlights (Lebaron Sims)

✓ Insights from State and Local Partners (Andrea Caupain Sanderson and Liana Humphrey)

✓ Policy Updates and Advocacy Opportunities (Vanna Cure)

✓ Next Steps & Close

Page 6: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Housekeeping

• This webinar is being recorded and will be mailed to registrants and available online

• All webinar attendees are muted to ensure sound quality

• Ask a question or share your thoughts anytime by typing into the text box of your GoToWebinarControl Panel

• If you experience any technical issues, email [email protected]

Page 7: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

The Unequal Impact of Covid-19:

Report Highlights

Lebaron SimsSenior Research Manager,Prosperity Now

Page 8: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’
Page 9: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

The Landscape, Pre-COVID19

• Millions of Americans suffer income shortfalls—even during economic booms.

• Financial emergencies don’t

happen in a vacuum—but policy can help folks get through the worst.

Page 10: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Macroeconomic

slowdown, lost income, and mass layoffs are the

first visible signs of

COVID-19’s impact.

Page 11: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’
Page 12: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most

vulnerable during

an economic

crisis?

Page 13: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

1. Over 45 million households without

enough cash on hand to weather an

emergency.

AND DON’T HAVE ENOUGH SAVED TO COVER A

POVERTY-LEVEL INCOME FOR 3 MONTHS IN THE

EVENT OF AN EMERGENCY

($3,168 for individual, $6,550 for family of four)

Page 14: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

1. Over 45 million households without

enough cash on hand to weather an

emergency.

AND DON’T HAVE ENOUGH SAVED TO COVER A

POVERTY-LEVEL INCOME FOR 3 MONTHS IN THE EVENT OF AN EMERGENCY

($3,168 for individual, $6,550 for family of four)

Page 15: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

2. Tens of millions of American workers in

low-wage occupations, or are paid hourly.

Page 16: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

2. Tens of millions of American workers in

low-wage occupations, or are paid hourly.

Employment in Selected Low-Wage OccupationsCombined food preparation and serving,

including food prep only

4,490,780

Retail salespersons 4,448,120

Cashiers 3,635,550

Waiters and waitresses 2,582,410

Personal care aides 2,211,950

Maids and housekeeping cleaners 924,290

Home health aides 797,670

Packers and packagers (hand) 663,970

Bartenders 631,480

Childcare workers 564,630

Source: Prosperity Now analysis of Bureau of Labor Statistics

2018 Occupational Employment Statistics data.

Page 17: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

3. Racial and ethnic minorities, immigrants,

and women.

Women are more likely than men to:

• Work in service sector occupations—particularly food prep, personal care, and cleaning or maintenance positions.

• Be paid at or below the minimum wage.

• Live in a liquid-asset poor household.

Page 18: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

3. Racial and ethnic minorities, immigrants,

and women.

Black and Hispanic or Latino workers are more likely to:

• Be paid at or below the minimum wage, and have low weekly wages.

• Live in a liquid-asset poor household.

• Lack health insurance or other access to workplace benefits.

Page 19: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

3. Racial and ethnic minorities, immigrants,

and women.

Immigrants are more likely than native-born individuals to:

• Work in service sector occupations—particularly immigrant women.

• Have low weekly wages.

• Live in a liquid-asset poor household.

Page 20: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

4. Undocumented immigrants, who are largely

excluded from accessing social supports

Undocumented workers comprise:• Over 25% of all farming jobs• 15% of all construction jobs• 9% of all service jobs

But: undocumented workers are often barred from accessing public benefit programs, and are more likely to work in positions that require in-person attendance and interpersonal contact.

Page 21: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

5. Low-wage workers in certain occupations

and states that fail to provide protections and

benefits to all classes of workers.

Source: Prosperity Now Scorecard, 2020

Page 22: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Who is most vulnerable during an economic crisis?

5. Low-wage workers in certain occupations

and states that fail to provide protections and

benefits to all classes of workers.

Source: Prosperity Now Scorecard, 2020

Page 23: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

In order to avert

catastrophe, we must ensure that the income,

home, and health of every

person are protected and preserved.

Page 24: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’
Page 25: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’
Page 26: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

The Landscape, Post-COVID19

• The economic fallout from the COVID-19 pandemic may last years, and will hurt low- and

moderate-income households, racial and ethnic minorities,

immigrants, and women most.

• Policymakers must strengthen our

social safety net and consumer protections to mitigate the effects

of a protracted recession—and to head-off future crises.

Page 27: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Local Perspectives

Andrea Caupain Sanderson

Chief Executive Officer

Bryd Barr Place

Liana Humphrey

Chief Marketing Officer

Crisis Assistance Ministry

Page 28: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

▪Share comments or ask questions at

any time by typing the question into the

text box on the control panel.

▪Or use the chat box to tell us what

impact you’re observing in your

communities and with your clients.

Questions

Page 29: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Policy, Advocacy and Next Steps

Vanna CureSenior Advocacy ManagerProsperity Now

Page 30: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Moving Forward Through State Policy

Increased Worker Supports

• Paid leave

• Expanding unemployment insurance

Strong Consumer Protections

• Safe access to cash

• Protections against predatory short-term lending

Safety Net

• Removal of asset limits

• Saving supports

Page 31: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Moving Forward Through Federal Policy

Additional funding for free tax prep services such as

VITA

Remove asset limits from public assistance programs

Additional funding for CDFIs to provide financial services in

underinvested communities

Help families build emergency savings

Extend CARES Act housing-related protections to manufactured

homes

Considerations for a fourth federal stimulus package:

Page 32: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

▪Expand access to credit and affordable financial products

▪Stronger consumer protections against abusive debt collectors and predatory lenders

▪Housing affordability and stability or renters and owners

▪Broadening safety net programs

▪ Innovative programs to build short- and long-term savings

Federal Policy for a More Equitable Future

Page 33: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

▪Share comments or ask questions at

any time by typing the question into the

text box on the control panel.

Questions

Page 34: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Resources

▪Visit our Advocacy Center to stay up to date with

advocacy efforts.

▪Policy questions? Email us at

[email protected]

▪Please complete the survey!

▪Sign up for other Networks and Campaigns to stay

in the know about issues you care about

▪Let us know your suggestions for future call topics

Page 35: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Stay Updated by Joining our Advocacy Center!Make your voice heard by calling, emailing, tweeting or scheduling a visit with

your Members of Congress with a fast and simple click of a button!

Text ProsperityNow to 18554716140 to join!

Page 36: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Plug into the Prosperity Now Community

◼ Financial Coaching Network

◼ Racial Wealth Equity Network

◼ Affordable Homeownership Network

◼ Financial Coaching Network

◼ Adult Matched Savings Network

◼ Taxpayer Opportunity Network

◼ Campaign for Every Kids Future — Children’s Savings Accounts

◼ Medical Financial Partnerships (Health/Wealth)

◼ Innovations in Manufactured Housing (I’M HOME) Network

Sign up for listservs and working groups, volunteer to facilitate

peer discussions, serve in a leadership role and more!

Page 37: Unequal Impact of COVID-19 on Household Financial Stability Impact of COVID...1. Discuss findings from our recent report, “The Unequal Impact of the COVID-19 crisis on households’

Thank You!

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