Millions of Americans have fallen into poverty since federal financial relief ended, according to 2 recent studies
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- The CARES Act helped ease economic burdens for Americans caused by the
coronaviruspandemic, but new researchshows a rising number of Americans are in povertysince this financial relief ended.
- The New York Times reported on research out of Columbia University and the University of Chicago and University of Notre Dame that shows relief like the one-time stimulus check and extended unemployment benefits helped Americans stay out of poverty in the spring.
- Based on the
Columbia Universityresearch, the number of Americans in poverty has increased by 8 million since May.
- The Chicago and Notre Dame joint study found a similar increase of 6 million between June and September, per The New York Times' reporting.
- A dashboard maintained by the
University of Chicagoand Notre Dame estimates that September's poverty rate increased by 0.6 percentage points to 11.1%.
- Business Insider's Joseph Zeballos-Roig covered the Chicago-Notre Dame study in June, writing that the researchers said assistance for struggling Americans may have helped lower poverty in the spring, when the rate dropped from 10.2% in March to 9.4% in April.
- "The increase in poverty in recent months was more noticeable for blacks, children, and those with a high school education or less," Chicago and Notre Dame wrote in a news release shared with Business Insider; researchers at Columbia University found similar differences.
- Dr. Bruce Meyer of the University of Chicago told Business Insider that if unemployment doesn't decline significantly, he expects "poverty would continue to increase pretty substantially" and Americans will have an "income shortfall for quite a while" unless there is more relief like bonuses to unemployment insurance.
- Researchers at Columbia University estimated that without the CARES Act, the poverty rate would have increased to 19.4% in April.
- With the CARES Act, they found the rate instead increased by two percentage points to 13.9%, and their data shows the September rate is still higher than pre-pandemic rates.
- "A lot more families are hurting, a lot more families are struggling to put food on the table, and if Congress doesn't take some pretty quick action.... I am pretty worried about what that would mean for families across the country over the next several months," Columbia University researcher Zach Parolin told Business Insider.
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