Discussion in 'Political Discussions' started by Vonnegut, Apr 8, 2020.
The National Multifamily Housing Council has a COVID-19 page up with a wealth of interesting information.
Here in New Mexico, all writs of restitution, meaning writs to remove the tenant and restore the property to the landlord, are stayed by order of the State Supreme Court if the sole ground for eviction is failure to pay rent and the tenant can show inability to pay. This is clearly a public health measure but it's hard on the landlords. No landlord receiving federal funding can evict either.
I'm just baffled at how this is going to turn out, there will be a lot of suffering. People who couldn't generate savings when times were good (historically low unemployment and historically high stock market), will certainly be inclined to struggle to catch up, particularly as we go into a recession. For many, it simply won't even be remotely feasible. We now have major restaurants, movie theaters, and retail establishments announcing that they are suspending rent payments. They have the muscle and clout to do so, individual renters simply do not. No idea how this will turn out or what solution will come about.
At the same time, it's not like there will be hordes of replacements with cash in hand. Hopefully a lot of landlords will realize it's better to work with the otherwise decent tenant you have.
The Administration and various State governments are hoping to keep demand alive by flooding the consumer market with cash. Hideously expensive but the right thing to do, I think. If the demand is still there, that is, if there is "pent up" demand, the economy should recover pretty quickly. But the difference between "want" and "demand" is the ability to pay. The former is of no economic significance. The latter is crucial. So lifting the usual restrictions on unemployment insurance and making the stimulus payments and offering the small business loans and all that stuff SHOULD meet the situation.
Absolutely agree. My concern though with relying on that is that people can be hounded for years over a rough few months, credit tarnished, rental history tarnished, fees and interests, court actions on their record, etc. The very people who were unable to generate savings, will be helpless in many cases. Unfortunately, it's a disturbingly high percentage of our society apparently and will get worse the longer this goes.
For individuals, I'm just not sure if it will be enough. $1200 doesn't even cover a months rent for a small decent apartment in many places, certainly none near me. Hopefully the addition to unemployment insurance will help many, but I'm just unsure if it will be enough for a significant portion of those affected by this.
If I understand it, the stimulus checks weren't meant to replace lost income. That should be covered by enhanced unemployment insurance.
FWIW many people did not originally qualify for unemployment insurance, and even with the expansion of eligibility, a good portions of the states have had system failures which have prevented people from receiving unemployment insurance or even finalizing their new qualification paperwork.
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