Covid-19: The Poor, Poorer And The Poorest

The pandemic has turned the spotlight on economic inequalities leaving the vulnerable communities to face the economic brunt of the crisis. Read to know more.
Covid-19: The Poor, Poorer And The Poorest
The Covid-19 outbreak has posed a great challenge for U.S. policymakers to consider and respond urgently to the underlying inequalities that are so clearly visible.
In this article

While the virus infects people regardless of race and wealth, the poor seem to be the most affected due to segregation by income, reduced economic mobility, and the high cost of medical care. The inability to afford the basic needs has pushed the low-income communities even further down the line and is more likely to be exposed to the virus, with higher mortality rates, and suffer economically.

In times of economic crisis, marginal groups are at the risk of succumbing to the pressure of a downward economic trend.

Economic Inequality: The Real Culprit

In the US, economic inequality is by far the closest link to a racial divide in income and wealth. According to a research report, poverty is most acute among Blacks and Latinos with 21 percent of Black people and 18 percent of Hispanic people living under the poverty line, compared to white people which are 8 percent. To supplement this data past recessions have affected Black and Latino families, partly because they have very little wealth to fall back on.

The gap is so wide that the lack of resources to stay protected against coronavirus has forced the poor with more chances of contracting it and subsequently spreading the virus.

The Health Scare

Low-income jobs like hospitality, transport, retail, and the gig economy cannot be done remotely, and in the U.S. the majority do not offer paid sick leave or health insurance. Less salaried people are often associated with a higher risk of chronic health conditions such as heart disease and diabetes, factors that mainly increase vulnerability to COVID-19. Most of the 40.6 million people living in poverty in the U.S. have no savings whatsoever to weather a lack of income, and even stock up on food.

While income support by the government in the form of unemployment benefits and stimulus is important it is not a solution but a temporary relief, long-term and targeted support becomes more important. One-time income support will not prevent families from facing eviction or foreclosure. People who lost jobs but are non-eligible for unemployment benefits will find it difficult to survive the pandemic and aftermath. Cheques issued by the government will not reach the eight million unauthorized workers, who generally earn low wages in hotels, restaurants, and on farms.

The government should make sure that all low-income workers and people who have lost wages must be supported. Direct payments should give assurances and promise child benefits and disability and social security benefits in the event of sickness, unemployment, or other lack of livelihood in situations beyond their control.

The Plight Of Taxi Drivers

Covid-19 has to be the nail in the coffin for the taxi industry based on the horrific number of suicides by taxi drivers in New York City in a year back before the pandemic due to the overwhelming debt and financial plight of medallion owners due to increasing competition.

According to an investigation, it was found that for over more than a decade, the powerful industry leaders channeled thousands of taxi drivers into reckless loans and extracted millions of dollars before the market collapsed.

In the process, these greedy business practices generated huge profits for brokers, bankers, investors, lawyers, fleet owners, and debt collectors. The leaders and Medallion brokers became multimillionaires as if the assets that they already possessed were insufficient.

The most affected were immigrant families whose life savings were gone forever leaving them shattered. Drivers were under debt as they could not repay and threatened an industry that has long defined the city of New York. The taxi drivers who are yet to come out of the backstabbing are now reeling under the pandemic crisis.

The taxi driver fiasco is just a tiny segment of the sufferings of the worker class. While the state and federal governments are working on solutions for coping with the economic meltdown, many Americans are helpless with a tough financial and very personal decision: do you keep housekeepers, caregivers, dog walkers, gardeners, and other workers on the payroll if their services are not needed or if they are unable to come to work right now?


The concerns point to one common problem: how do we keep the income steady when the economy is showing the door for just the poor? The government initiatives are a huge step that might not be able to connect at an individual level. The show must go on and it is for those sitting at the top. Many will be exploited but the choice rests with the decision that you make. A low income can still be a better alternative than being jobless because using an emergency fund can help you do away with the regular expenses and focus on your savings either for the future or survive the pandemic.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!



This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Kanye West
Kanye West Net Worth 2024: Biography, Career and Salary
Kanye West. The name brings up a range of emotions. Known for unabashed attitude of speaking whatever comes to his mind and his controversial opinions on music, religion and his fellow human beings, Kanye West is synonymous with fame. The world knows Kanye West, but do you know what he does with his money?
Cardi B
Cardi B Net Worth 2024: Biography, Career and Salary
Think Cardi B and money, music and memes come to mind. The woman who changed the face of rap forever may say it's okurr to be a baddie, but at heart she's a softie for several charitable ventures. She even matches the amounts her fans have given for various causes.
Dwayne Johnson
Dwayne Johnson Net Worth 2024: Biography, Career and Salary
Think muscles, money and the moves and there are chances Dwayne The Rock Johnson pops up in your head. If not, then you may sit up now if you read that he does so much more for the community from his millions in net worth.
Mr Beast
Mr Beast Net Worth 2024: Biography, Charity and Salary
Can you Buy Flowers with EBT? Eligible and Non Eligible Items
Best Ways to Celebrate Independence Day at Home
Celebrating Independence Day at home can be a fun and meaningful way to commemorate the holiday. Explore the best ways to plan a festive and enjoyable celebration at home with Beem!

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: