FACT SHEET: Trump Failed to Lead, and Now Virginians Are Paying the Price

From the Democratic National Committee (DNC):

Ahead of the release of the July jobs report today, the Democratic National Committee is releasing the following fact sheet detailing how Trump’s ongoing refusal to back adequate additional support for those who have lost a job or income during this time is hurting Virginia’s economy and working families. 

From DNC Spokesperson Will Baskin-Gerwitz: “Today’s jobs report is another reminder that it didn’t have to be this bad — Trump failed to respond to the coronavirus quickly or effectively, and his incompetence cost many Virginians their health, their jobs, and for far too many, their lives. Cases spiked this summer, yet Trump’s continued failure to lead has now left many working families without the continued support they need to deal with this crisis and pay for rent, food and other necessities. At every turn, Virginians  are paying the price for Trump’s ineffectiveness and failures.”

August 7, 2010
TO: Interested Parties
FR: The Democratic National Committee
RE: FACT SHEET: Trump failed to lead, and now Virginians are paying the price.

Trump failed to respond quickly or effectively to the coronavirus, and his incompetence has had a devastating impact on Virginia’s economy. It didn’t need to be this bad, and the state has suffered from record high unemployment. Now Virginians are losing the emergency support they need to pay for rent, food and other necessities — and Trump is once again failing to lead.

TRUMP’S FAILED CORONAVIRUS RESPONSE MADE THE ECONOMIC FALLOUT WORSE THAN IT HAD TO BE, WITH UNEMPLOYMENT REACHING RECORD HIGHS IN VIRGINIA SINCE THE VIRUS HIT THE U.S.

Washington Post: Contrary To Trump’s Predictions About A Speedy Economic Recovery, Economists Projected That “The Outlook Is A Start-And-Stop Recovery With The Economy Held Hostage By A Failure To Contain The Pandemic” “Trump’s salesmanship also risks opening a credibility gap between his rosy comments and reality. In a Fox Business interview on Wednesday, he again predicted a swift ‘V-shaped’ recovery, an expectation that few economists outside his administration share. And he repeated his unfounded claim that the coronavirus will ‘just disappear’ one day.  ‘We’re headed back in a very strong fashion with a ‘V,’ and I think we’re going to be very good with the coronavirus,’ the president said. ‘I think that at some point that is going to sort of just disappear.’  Instead, the outlook is a start-and-stop recovery with the economy held hostage by a failure to contain the pandemic, some economists said.” [Washington Post, 7/3/20]

TRUMP AND REPUBLICANS FAILED TO ENSURE THAT ENHANCED UNEMPLOYMENT BENEFITS CONTINUED UNINTERRUPTED, EVEN AS VIRGINIANS STRUGGLE TO AFFORD RENT AND PUT FOOD ON THE TABLE 

HEADLINE: “As Trump Undercuts Aid Talks, White House Says Extra Jobless Benefits Will Lapse.” [New York Times, 7/29/20]

• Moody’s Chief Economist Mark Zandi Projected That A Failure To Reinstate The Full $600 Enhanced Unemployment Benefits Could Cost The U.S. Economy 1.1 Million Jobs By The End Of The Year. “Mark Zandi, chief economist at Moody’s, says the federal government’s $600 payments have the biggest ‘economic bang for the buck’ of any fiscal support so far, more so than stimulus checks and payroll tax cuts.  In fact, if the payments are cut to $200-per-week through the end of the year (which is possible if states struggle to update their computer systems) then U.S. GDP would see a decline of 1.15%, another 1 million jobs would be lost and the unemployment rate would rise by 0.6%.   If federal unemployment insurance benefits are eliminated completely, that would result in a GDP drop of 1.3%, 1.1 million more job losses and unemployment jumping 0.7%, Zandi says.” [Forbes, 7/31/20]

AS MANY ARE STILL STRUGGLING TO MAKE ENDS MEET, UNEMPLOYED VIRGINIANS WILL NO LONGER HAVE ACCESS TO THE $600 ENHANCED FEDERAL WEEKLY UNEMPLOYMENT BENEFIT 

Suffolk News-Herald: In Virginia, “The Number Of Initial Claims Filed From Mid-March Through The Week Ending July 25 Was More Than Double The Average Number Filed During The Last Three Economic Recessions, And At More Than 1.2 Million, Has Surpassed All Initial Claims Filed From Mid-2014 Through 2019.” [Suffolk News-Herald, 8/3/20]

Without The $600 Enhanced Federal Unemployment Benefit, Virginia Claimants Would Receive A Maximum Of $378 Weekly. Question: “Why haven’t some people received the additional $600 in federal pandemic unemployment compensation? And, what can they do to try and procure it?”  Answer: “The $600 additional benefit (Federal Pandemic Unemployment Compensation) to the weekly benefit amount was in place from March 29 to July 25,’ Dr. Healy said. ‘Because payments come after [a] week certification of wages, this will be the last week the $600 is added to the weekly benefit. Congress will need to pass a bill to add any additional money to the $378 maximum weekly benefit amount in Virginia.” [WUSA9, 7/30/20]

• On Average, Virginians Would See A 69% Reduction In Weekly Unemployment Benefits If The $600 Weekly Federal Payment Ended. [Benefit Cut from FPUC Expiration for the Average American Worker, House Committee On Ways & Means, 7/1/20]

Late June-Early July Survey: In Virginia, 14% Of Adults (357,000) Living In A Household With Children Reported That Their Kids Were Not Eating Enough Because They Could Not Afford Food. [Appendix Table 1, Center on Budget and Policy Priorities, 7/21/20]

• HEADLINE: “For The Unemployed, Rising Grocery Prices Stretch Budgets Even More.” [Washington Post, 8/4/20]

Late June-Early July Survey: In Virginia, 12% Of Renters (192,000) Reported Being Behind On Their Rent. [Appendix Table 3, Center on Budget and Policy Priorities, 7/21/20]