Back in March, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a package that comprised more than $2 trillion in economic relief. Those funds were meant to go to American workers, families, and small businesses. But the reality is that wealthy individuals and corporations have found themselves being financially supported while ordinary Americans have been left behind with their requests for help falling on deaf ears.
The CARES Act preserved jobs at the top of corporations, just as workers further down the pay scale were laid off.
The only direct financial support that the CARES Act provided to all Americans was a one-time $1,200 payment in the form of a so-called “stimulus check,” which wasn’t even enough to cover their basic expenses during the coronavirus-induced economic shutdown. In some cases, payments were seriously delayed due to flaws in the distribution system, resulting in thirty five million Americans not receiving their checks until June, according to a House Ways and Means Committee report.
The CARES Act also failed citizens by failing to preserve jobs. By late May, unemployment claims hit 40 million, or 26 percent of the labor force. This shows that the funds provided in the CARES Act preserved jobs at the top of corporations, just as workers further down the pay scale were laid off. Unfortunately, there may be worse to come, with some economists warning that a second wave of job cuts is imminent, especially for mid-level white collar workers.
If the Republican Party really wanted to stimulate the economy, there’s one simple solution: Implement a Universal Basic Income (UBI). As touted by former presidential candidate Andew Yang and others, creating a UBI system would ensure that those who are out of work can still meet their essential expenses. In crises, such as the one brought on by COVID-19, UBI would be especially effective—Republicans, however, claim that it’s too expensive.
Yang’s plan, called “The Freedom Dividend,” was forecast to cost $2.8 trillion per year. That sounds like a lot of money, but opposition to UBI on the basis of cost is difficult to sustain given that Republicans recently pushed through a $2 trillion relief package and are already floating the idea of another $2 trillion package.
The takeaway here is that the money exists, but Republicans would rather spend it on corporate handouts than on people who really need it.
About $500 billion of CARES funding, for example, was allocated to provide financial support for businesses. When asked where those funds went, Treasury Secretary Steven Mnuchin refused to disclose exactly which companies received it. For taxpayers who funded that support, many of whom are now having to decide between food and medicine, such a lack of accountability is unacceptable. Quite simply, the emergency measures introduced in response to the coronavirus pandemic have been used as a cloak to enable the Trump Administration to siphon off taxpayer money into the pockets of those who are already wealthy.
When a corporation asks for a taxpayer-funded bailout, the GOP doesn’t blink before signing the check. When a wealthy individual asks for a huge tax cut, the GOP complies without hesitation. But when millions of citizens ask for a Green New Deal to protect the environment, or plead for Medicare for All to create a healthy society, or lobby their representatives for UBI to ensure that people have the necessary financial stability, the GOP says each of these proposals are unrealistic and cannot be afforded.
The Republican Party’s refusal to support struggling Americans while, at the same time, funneling huge amounts of taxpayer money to the wealthiest has exposed the GOP for what they truly are—fiscal hypocrites.
Individuals pay their taxes in the United States in the belief that the money collected by the government will be used to fund policies designed to make the country as a whole a better place for all. With cash-strapped public schools now being forced to reopen this fall, along with a broken health care system, and a failure to provide any meaningful financial support during an unprecedented crisis, many voters find it difficult to accept that the government is appropriately handling taxpayer dollars. By neglecting ordinary citizens in favor of the wealthy, the U.S. government also risks causing a domino effect that could cripple the economy and eclipse even the devastating impacts of the 2008 crash.
UBI could act as a stopgap for this. And there are plenty of examples where UBI-style programs have worked to stimulate the economy. In Alaska, the Permanent Fund Dividend has been paid annually to residents—regardless of age, wealth, or employment status—for them to spend however they wish. It encourages individuals to put their money back into the economy, perhaps through additional spending, paying off debts, starting a new business, or even giving them the financial confidence to purchase property.
If the approach taken in Alaska was rolled-out across the United States, and the payments made monthly instead of annually, it would benefit the entire country.
The difficulties caused by the pandemic have highlighted fundamental flaws in the way in which society is currently organised. The talking point that UBI is unaffordable has been clearly shown to be bogus, given the ease with which trillions of dollars have been made available in recent months.
In the meantime, the Republican Party’s refusal to provide necessary support to struggling Americans while, at the same time, funneling huge amounts of taxpayer money to the wealthiest has exposed the GOP for what they truly are—fiscal hypocrites.