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    How the U.S. Got It (Mostly) Right in the Economy’s Rescue

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    #masthead-section-label, #masthead-bar-one { display: none }Biden’s Stimulus PlanBiden’s AddressWhat to Know About the BillAnalysis: Economic RescueBenefits for Middle ClassShoppers at a mall in Los Angeles. Consumer spending is nearly back to its prepandemic level.Credit…Mark Abramson for The New York TimesAnalysisHow the U.S. Got It (Mostly) Right in the Economy’s RescueThough the recession has been painful, policymakers cushioned the pandemic’s blow and opened the way to recovery.Shoppers at a mall in Los Angeles. Consumer spending is nearly back to its prepandemic level.Credit…Mark Abramson for The New York TimesSupported byContinue reading the main storyMarch 15, 2021Updated 2:31 p.m. ETWhen the coronavirus pandemic ripped a hole in the economy a year ago, many feared that the United States would repeat the experience of the last recession, when a timid and short-lived government response, in the view of many experts, led to years of high unemployment and anemic wage growth.Instead, the federal government responded with remarkable force and speed. Within weeks after the virus hit American shores, Congress had launched a multitrillion-dollar barrage of programs to expand unemployment benefits, rescue small businesses and send checks to most American households. And this time, unlike a decade ago, Washington is keeping the aid flowing even as the crisis begins to ease: On Thursday, President Biden signed a $1.9 trillion aid bill that will pump still more cash into households, businesses, and state and local governments.The Federal Reserve, too, acted swiftly, deploying emergency tools developed in the financial crisis a decade earlier. Those efforts helped safeguard the financial system — and the central bank has pledged to remain vigilant.The result is an economy far stronger than most forecasters expected last spring, even as the pandemic proved much worse than feared. The unemployment rate has fallen to 6.2 percent, from nearly 15 percent in April. Consumer spending is nearly back to its prepandemic level. Households are sitting on trillions of dollars in savings that could fuel an epic rebound as the health crisis eases.Yet not everyone made it into the lifeboats unscathed, if at all. Millions of laid-off workers waited weeks or months to begin receiving help, often with lasting financial consequences. Aid to hundreds of thousands of small businesses dried up long before they could welcome back customers; many will never reopen. Long lines at food banks and desperate pleas for help on social media reflected the number of people who slipped through the cracks.“The damage that has been done has occurred in a disparate fashion,” said Michelle Holder, a John Jay College economist who has studied the pandemic’s impact. “It’s occurred among low-income families. It’s occurred among Black and brown families. It’s certainly occurred among families that did not have a lot of resources to fall back on.”For many white-collar workers, Dr. Holder said, the pandemic recession may one day look like a mere “bump in the road.” But not for those hit hardest.“It wasn’t just a bump in the road if you were a low-wage worker, if you were a low-income family,” she said. “Their ability to recover is just not the same as ours.”Jesus Quinonez lost his job as a manager at a warehouse in the San Diego area early in the pandemic. He quickly found another job — with a company that shut down before he could begin work. He hasn’t worked since.It took Mr. Quinonez, 62, three months to fight his way through California’s overwhelmed unemployment insurance system and begin receiving benefits. Less than two months later, a $600-a-week unemployment supplement from the federal government expired, leaving Mr. Quinonez, his wife and his four children trying to subsist on a few hundred dollars a week in regular unemployment benefits.By January, Mr. Quinonez was four months behind on rent on the one-bedroom trailer he shares with his family. He had raided his 401(k) account, leaving no savings a few years before his intended retirement. Government nutrition assistance kept his family fed, but it didn’t help with the car payment, or pay for toilet paper.“I started falling behind on my bills, plain and simple,” he said.A closed storefront in Newark. Not everyone made it into the lifeboats unscathed.Credit…Bryan Anselm for The New York TimesFor hundreds of thousands of small businesses, government aid dried up long before they could welcome back customers. Many will never reopen.Credit…Bryan Anselm for The New York TimesBut in December, Congress passed a $900 billion aid package, which included a second round of direct checks to households and revived the expanded unemployment programs. By January, Mr. Quinonez was able to pay off at least part of his debt, enough to hold on to the trailer and his car. The next round of aid should carry Mr. Quinonez until he can work again.“As soon as they lift the restrictions and more people get vaccinated, I see things coming back good,” he said. “I expect to get a job, and I expect to continue working until I retire.”Whether Mr. Quinonez’s story — and millions more like it — should count as a success or failure for public policy is partly a matter of perspective. Mr. Quinonez himself is unimpressed: He worked and paid taxes for decades, then found himself subject to a decrepit state computer system and a divided Congress.“Now that we need them, there’s no freaking help,” he said.Research from Eliza Forsythe, an economist at the University of Illinois, found that from June until Feb. 17, only 41 percent of unemployed workers had access to benefits. Some of the rest were unaware of their eligibility or couldn’t navigate the thicket of rules in their states. Others simply weren’t eligible. Asian workers, Black workers and those with less education were disproportionately represented among the nonrecipients.The gaps and delays in the system had consequences.“The impact of that is folks’ having to move out of their apartments because they have this money that’s supposed to be coming but they just haven’t received it,” said Rebecca Dixon, executive director of the National Employment Law Project, a worker advocacy group. Others kept their homes because of eviction bans, but had their utilities shut off, Ms. Dixon added, or turned to food banks to avoid going hungry — measures of food insecurity surged in the pandemic.Still, the federal government did far more for unemployed workers than in any previous recession. Congress expanded the safety net to cover millions of workers — freelancers, part-time workers, the self-employed — who are left out in normal times. At the peak last summer, the state and federal unemployment systems were paying $5 billion a day in benefits — money that helped workers avoid evictions and hunger and that flowed through the economy, preventing an even worse outcome.The record of other federal responses is similarly mixed. The Paycheck Protection Program helped hundreds of thousands of small businesses but was plagued by administrative hiccups and, at least according to some estimates, saved relatively few jobs. Direct checks to households similarly helped keep families afloat, but sent billions of dollars to households that were already financially stable, while failing to reach some of those who needed the help the most — in some cases because they had not filed tax returns or did not have bank accounts.Beyond the successes and failures of specific programs, any evaluation of the broader economy needs to start with a question: Compared with what?Relative to a world without Covid-19, the economy remains deeply troubled. The United States had 9.5 million fewer jobs in February than a year earlier, a hole deeper than in the worst of the last recession. Gross domestic product fell 3.5 percent in 2020, making it among the worst years on record.Relative to the rosy predictions early in the pandemic — when economists hoped a brief shutdown would let the country beat the virus, then get quickly back to work — the downturn has been long and damaging. But those hopes were dashed not by a failure of economic policy but by the virus itself, and the failure to contain it.“If you want to think back on what we got wrong, really the fundamental errors were about the spread of the virus,” said Karen Dynan, a Harvard economist and Treasury Department official during the Obama administration. But relative to the outcome that forecasters feared in the worst moments last spring, the rebound has been remarkably strong. In May, economists at Goldman Sachs predicted that the unemployment rate would be 12 percent at the end of 2020 and wouldn’t fall below 6 percent until 2024. The same team now expects the rate to fall to 4 percent by the end of this year. Other forecasters have similarly upgraded their projections..css-yoay6m{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}@media (min-width:740px){.css-yoay6m{font-size:1.25rem;line-height:1.4375rem;}}.css-1dg6kl4{margin-top:5px;margin-bottom:15px;}.css-k59gj9{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;width:100%;}.css-1e2usoh{font-family:inherit;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;border-top:1px solid #ccc;padding:10px 0px 10px 0px;background-color:#fff;}.css-1jz6h6z{font-family:inherit;font-weight:bold;font-size:1rem;line-height:1.5rem;text-align:left;}.css-1t412wb{box-sizing:border-box;margin:8px 15px 0px 15px;cursor:pointer;}.css-hhzar2{-webkit-transition:-webkit-transform ease 0.5s;-webkit-transition:transform ease 0.5s;transition:transform ease 0.5s;}.css-t54hv4{-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-1r2j9qz{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-e1ipqs{font-size:1rem;line-height:1.5rem;padding:0px 30px 0px 0px;}.css-e1ipqs a{color:#326891;-webkit-text-decoration:underline;text-decoration:underline;}.css-e1ipqs a:hover{-webkit-text-decoration:none;text-decoration:none;}.css-1o76pdf{visibility:show;height:100%;padding-bottom:20px;}.css-1sw9s96{visibility:hidden;height:0px;}#masthead-bar-one{display:none;}#masthead-bar-one{display:none;}.css-1cz6wm{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;font-family:’nyt-franklin’,arial,helvetica,sans-serif;text-align:left;}@media (min-width:740px){.css-1cz6wm{padding:20px;width:100%;}}.css-1cz6wm:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1cz6wm{border:none;padding:20px 0 0;border-top:1px solid #121212;}Frequently Asked Questions About the New Stimulus PackageThe stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more. Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read moreThis credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.The recovery proved so strong in part because businesses were able to adapt better — and Americans, for better or worse, were willing to take more risks — than many people expected, allowing a faster rebound in activity over the summer. But the biggest factor was that Congress responded more quickly and forcefully than in any past crisis — a particularly remarkable outcome given that both the White House and Senate were controlled by Republicans, a party traditionally skeptical of programs like unemployment insurance.Millions of laid-off workers waited weeks or months to begin receiving help, a lag that often left financial consequences.Credit…Bryan Woolston/ReutersLong lines at food banks provided a hint of the number of people who slipped through the cracks.Credit…Tamir Kalifa for The New York Times“The dominant narrative about Washington and about legislating and public policy is one of dysfunction, one of not being able to rise to meet challenges, one of not being able to get it together to address glaring problems, and I think it’s a well-earned narrative,” said Michael R. Strain, an economist at the American Enterprise Institute. “But when I look back over the last year, that is just not what I see.”Congress didn’t prevent a recession. But its intervention, along with aggressive action from the Federal Reserve, may have prevented something much worse.“We could have experienced another Great Depression-like event that took years and years to recover from, and we didn’t,” Dr. Strain said.Washington’s moment of unity didn’t last. Democrats pushed for another multitrillion-dollar dose of aid. Republicans, convinced that the economy would rebound largely on its own once the pandemic eased, wanted a much smaller package. The stalemate lasted months, allowing aid to households and businesses to lapse. Economists are still debating the long-term impact of that delay, but there is little doubt it resulted in thousands of business failures.“We had this grand success that policymakers acted so quickly in passing two significant pieces of legislation early in the pandemic, and then they flailed through the whole fall in just the most frustrating of ways,” said Wendy Edelberg, director of the Hamilton Project, an economic-policy arm of the Brookings Institution. “That was just such an unforced error and created confusion and needless panic.”But unlike in 2009, when Republican opposition prevented any significant economic aid after President Barack Obama’s first few months in office, Congress did eventually provide more help. The $900 billion in aid passed in late December prevented millions of people from losing unemployment benefits, and helped sustain the recovery at a moment when it looked like it was faltering.The $1.9 trillion plan that Democrats pushed through Congress this month could help the United States achieve something it failed to do after the last recession: ensure a robust recovery.If that happens, it could fundamentally shift the narrative around the pandemic recession. The damage was deeply unequal, and the economic response, though it helped many families weather the storm, didn’t come close to overcoming that inequity. But a recovery that restores jobs quickly could help workers like Mr. Quinonez get back on track.“It’s just a bad year, and you just close the page and move on and try to make the best of the new days and new years,” he said. “Things are going to get better.”AdvertisementContinue reading the main story More

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    Child Tax Credit, Proposed in Stimulus, Advances an Effort Years in the Making

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    #masthead-section-label, #masthead-bar-one { display: none }Biden’s Stimulus PlanSenate PassageWhat to Know About the BillWhat the Senate Changed$15 Minimum WageWhere Trump Voters StandAdvertisementContinue reading the main storySupported byContinue reading the main storyIn the Stimulus Bill, a Policy Revolution in Aid for ChildrenThe $1.9 trillion pandemic relief package moving through Congress advances an idea that Democrats have been nurturing for decades: establishing a guaranteed income for families with children.Anique Houpe, a single mother in Georgia, is among the parents whom Democrats are seeking to help with a plan to provide most families with a monthly check of up to $300 per child.Credit…Audra Melton for The New York TimesMarch 7, 2021Updated 5:03 p.m. ETWASHINGTON — A year ago, Anique Houpe, a single mother in suburban Atlanta, was working as a letter carrier, running a side business catering picnics and settling into a rent-to-own home in Stone Mountain, Ga., where she thought her boys would flourish in class and excel on the football field.Then the pandemic closed the schools, the boys’ grades collapsed with distance learning, and she quit work to stay home in hopes of breaking their fall. Expecting unemployment aid that never came, she lost her utilities, ran short of food and was recovering from an immobilizing bout of Covid when a knock brought marshals with eviction papers.Depending on when the snapshot is dated, Ms. Houpe might appear as a striving emblem of upward mobility or a mother on the verge of homelessness. But in either guise, she is among the people Democrats seek to help with a mold-breaking plan, on the verge of congressional passage, to provide most parents a monthly check of up to $300 per child.Obscured by other parts of President Biden’s $1.9 trillion stimulus package, which won Senate approval on Saturday, the child benefit has the makings of a policy revolution. Though framed in technocratic terms as an expansion of an existing tax credit, it is essentially a guaranteed income for families with children, akin to children’s allowances that are common in other rich countries.The plan establishes the benefit for a single year. But if it becomes permanent, as Democrats intend, it will greatly enlarge the safety net for the poor and the middle class at a time when the volatile modern economy often leaves families moving between those groups. More than 93 percent of children — 69 million — would receive benefits under the plan, at a one-year cost of more than $100 billion.The bill, which is likely to pass the House and be signed by Mr. Biden this week, raises the maximum benefit most families will receive by up to 80 percent per child and extends it to millions of families whose earnings are too low to fully qualify under existing law. Currently, a quarter of children get a partial benefit, and the poorest 10 percent get nothing.While the current program distributes the money annually, as a tax reduction to families with income tax liability or a check to those too poor to owe income taxes, the new program would send both groups monthly checks to provide a more stable cash flow.By the standards of previous aid debates, opposition has been surprisingly muted. While the bill has not won any Republican votes, critics have largely focused on other elements of the rescue package. Some conservatives have called the child benefit “welfare” and warned that it would bust budgets and weaken incentives to work or marry. But Senator Mitt Romney, Republican of Utah, has proposed a child benefit that is even larger, though it would be financed through other safety net cuts.While the proposal took center stage in response to the pandemic, supporters have spent decades developing the case for a children’s income guarantee. Their arguments gained traction as science established the long-term consequences of deprivation in children’s early years, and as rising inequality undercut the idea that everyone had a fair shot at a better life.The economic shock and racial protests of the past year brought new momentum to a plan whose reach, while broad, would especially help Black and Latino families, who are crucial to the Democrats’ coalition.Mr. Biden’s embrace of the subsidies is a leftward shift for a Democratic Party that made deep cuts in cash aid in the 1990s under the theme of “ending welfare.” As a senator, Mr. Biden supported the 1996 welfare restrictions, and as recently as August his campaign was noncommittal about the child benefit.The president now promotes projections that the monthly checks — up to $300 for young children and $250 for those over 5 — would cut child poverty by 45 percent, and by more than 50 percent among Black families.“The moment has found us,” said Representative Rosa DeLauro, a Connecticut Democrat who has proposed a child allowance in 10 consecutive Congresses and describes it as a children’s version of Social Security. “The crystallization of the child tax credit and what it can do to lift children and families out of poverty is extraordinary. We’ve been talking about this for years.”Ms. Houpe’s home state has been crucial to the advance of the benefit. Democrats are in position to enact it only because they won Georgia’s two Senate seats in runoff elections in January, barely gaining control of the chamber. Ms. Houpe decided that she needed to stay home to care for her boys during the pandemic and left a job with the Postal Service that paid nearly $18 an hour.Credit…Audra Melton for The New York TimesWhile Ms. Houpe, an independent, skipped the presidential election, that promise of cash relief led her to vote Democratic in January. “I just felt like the Democrats would be more likely to do something,” she said.Her precarious situation is the kind the subsidy seeks to address. Born to a teenage mother, Ms. Houpe, 33, grew up straining to escape hardship. Though she was young when she had a child, she came close to finishing a bachelor’s degree, found work as pharmacy technician and took a job with the post office to lift her wage to nearly $18 an hour. Raising a son on her own, she took in a nephew whom she regards as a second child.Ms. Houpe seemed on the rise before the pandemic, with the move to a new house. The monthly payment consumed 60 percent of her income, twice what the government deems affordable, but she trimmed the cost by renting out a room and started a side job catering picnics.Biden’s Stimulus PlanFrequently Asked QuestionsUpdated March 6, 2021, 1:58 p.m. ETHow big are the stimulus payments in the bill, and who is eligible?How would the stimulus bill affect unemployment payments?What would the bill do to help people with housing?During the pandemic, she spent six months waiting for schools to reopen until the boys’ plummeting grades — Trejion is 14 and Micah 11 — persuaded her that she could not leave them alone.“I had to make a decision,” Ms. Houpe said, “my boys or my job.”But when her requests for unemployment were denied, the bottom fell out.While critics fear cash aid weakens work incentives, Ms. Houpe said it might have saved her job by allowing her to hire someone part time to supervise the boys.“I definitely would have kept my job,” she said.If she had been receiving the child benefit last year, Ms. Houpe said, she would have used it to hire someone to help watch her boys so she could have kept her job.Credit…Audra Melton for The New York TimesThe campaign for child benefits is at least a half-century old and rests on a twofold idea: Children are expensive, and society shares an interest in seeing them thrive. At least 17 wealthy countries subsidize child-rearing for much of the population, with Canada offering up to $4,800 per child each year. But until recently, a broad allowance seemed unlikely in the United States, where policy was more likely to reflect a faith that opportunity was abundant and a belief that aid sapped initiative.It was a Democratic president, Bill Clinton, who abolished the entitlement to cash aid for poor families with children. The landmark law he signed in 1996 created time limits and work requirements and caused an exodus from the rolls. Spending on the poor continued to grow but targeted low-wage workers, with little protection for those who failed to find or keep jobs.In a 2018 analysis of federal spending on children, the economists Hilary W. Hoynes and Diane Whitmore Schanzenbach found that virtually all the increases since 1990 went to “families with earnings” and those “above the poverty line.”But rising inequality and the focus on early childhood brought broader subsidies a new look. A landmark study in 2019 by the National Academies of Sciences, Engineering and Medicine showed that even short stints in poverty could cause lasting harm, leaving children with less education, lower adult earnings and worse adult health. Though welfare critics said aid caused harm, the panel found that “poverty itself causes negative child outcomes” and that income subsidies “have been shown to improve child well-being.”Republicans may have unwittingly advanced the push for child benefits in 2017 by doubling the existing child tax credit to $2,000 and giving it to families with incomes of up to $400,000, but not extending the full benefit to those in the bottom third of incomes.Republicans said that since the credit was meant to reduce income taxes, it naturally favored families who earned enough to have a tax liability. But by prioritizing the affluent, the move amplified calls for a more equitable child policy.Efforts to increase the benefit and include the needy drew strong support from Speaker Nancy Pelosi and was led in the Senate by the Democrats Sherrod Brown of Ohio, a progressive, and Michael Bennet of Colorado, a centrist. A majority of Democrats in both chambers were on board when unemployment surged because of the coronavirus.“The crisis gave Democrats an opportunity by broadening the demand for government relief,” said Sarah A. Binder, a political scientist at George Washington University.Welfare critics warn the country is retreating from success. Child poverty reached a new low before the pandemic, and opponents say a child allowance could reverse that trend by reducing incentives to work. About 10 million children are poor by a government definition that varies with family size and local cost of living. (A typical family of four with income below about $28,000 is considered poor.)“Why are Republicans asleep at the switch?” wrote Mickey Kaus, whose antiwelfare writings influenced the 1990s debate. He has urged Republicans to run ads in conservative states with Democratic senators, attacking them for supporting “a new welfare dole.”Under Mr. Biden’s plan, a nonworking mother with three young children could receive $10,800 a year, plus food stamps and Medicaid — too little to prosper but enough, critics fear, to erode a commitment to work and marriage. Scott Winship of the conservative American Enterprise Institute wrote that the new benefit creates “a very real risk of encouraging more single parenthood and more no-worker families.”But a child allowance differs from traditional aid in ways that appeal to some on the right. Libertarians like that it frees parents to use the money as they choose, unlike targeted aid such as food stamps. Proponents of higher birthrates say a child allowance could help arrest a decline in fertility. Social conservatives note that it benefits stay-at-home parents, who are bypassed by work-oriented programs like child care.And supporters argue that it has fewer work disincentives than traditional aid, which quickly falls as earnings climb. Under the Democrats’ plan, full benefits extend to single parents with incomes of $112,500 and couples with $150,000.Backlash could grow as the program’s sweep becomes clear. But Samuel Hammond, a proponent of child allowances at the center-right Niskanen Center, said the politics of aid had changed in ways that softened conservative resistance.A quarter-century ago, debate focused on an urban underclass whose problems seemed to set them apart from a generally prospering society. They were disproportionately Black and Latino and mostly represented by Democrats. Now, insecurity has traveled up the economic ladder to a broader working class with similar problems, like underemployment, marital dissolution and drugs. Often white and rural, many are voters whom Republicans hope to court.“Republicans can’t count on running a backlash campaign,” Mr. Hammond said. “They crossed the Rubicon in terms of cash payments. People love the stimulus checks.”The muted opposition to the proposal, he said, showed that “people on the right are curious about the child benefit — not committed, but movable.”An analysis by Sophie M. Collyer of Columbia University underscored the plan’s broad reach. She found that in Georgia, the child allowance would bring net gains per child of $1,700 for whites, $1,900 for Latinos and $2,100 for Blacks.As a suburban independent in a state that was long red, Ms. Houpe is among those whose loyalties are up for grabs. She rejected the argument that a child subsidy would promote joblessness and warned that some parents had to work too much. “My son had football games every Saturday morning,” she said, “and I wasn’t there for him as much as I wanted to be.”If aid posed risks, Ms. Houpe said, so did the lack of any. Out of money last fall, she suffered debilitating depression, and a panic attack grew so severe she pulled her car to the side of road. “My son was freaking out” looking for her asthma inhaler, she said. Still trying to get unemployment benefits, Ms. Houpe has plans for a baking business called The Munchie Shopp. She has practiced strawberries dipped in white chocolate and honed her red velvet cake. This week, she tried dying one blue but denied making a political statement.“During an election, people say anything to win,” she said. “Let’s see what they do.”AdvertisementContinue reading the main story More

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    Biden Presses Economic Aid Plan, Rejecting Inflation Fears

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    #masthead-section-label, #masthead-bar-one { display: none }The Jobs CrisisCurrent Unemployment RateWhen the Checks Run OutThe Economy in 9 ChartsThe First 6 MonthsAdvertisementContinue reading the main storySupported byContinue reading the main storyBiden Presses Economic Aid Plan, Rejecting Inflation FearsDespite a better-than-expected jobs report, administration officials stressed that millions of workers still needed help from a proposed $1.9 trillion stimulus package.President Biden continued to press his case for his stimulus plan on Friday after a stronger-than-expected jobs report.Credit…Al Drago for The New York TimesJim Tankersley and March 5, 2021, 6:58 p.m. ETWASHINGTON — With a $1.9 trillion economic aid package on the brink of passing Congress and the pace of vaccinations picking up, some economists, Republican lawmakers and Wall Street traders are increasingly raising a counterintuitive concern: that the economy, still emerging from its precipitous pandemic-induced drop, could be on a path toward overheating.The Biden administration rejected that argument again on Friday. Despite a stronger-than-expected jobs report, the president and his aides said there was still a long way to go to ensure the benefits of the recovery flow to workers hardest hit by the pandemic, who are predominantly people of color.Passing President Biden’s recovery plan, they said, remains essential to a full and equitable recovery.“Black workers are still facing an economic crisis,” Janelle Jones, the chief economist at the Labor Department, said in an interview. “We cannot talk about recovery and taking our foot off the gas while these workers are still facing economic devastation.”For those workers, Ms. Jones said, “It really matters what we do in the next two weeks.”But some Republicans, saying the economy no longer needs an injection of nearly $2 trillion in borrowed money, continued to urge Democrats to pare back the stimulus package, which Senate Democrats have modified slightly in recent days.On Wall Street, there were signs this week that investors are beginning to believe that such a large package could spur some resurgence in inflation, though there is little to suggest that markets anticipate a return to the dangerous levels of the 1970s, as a few prominent economists have warned.Mr. Biden continued to press his case for the full $1.9 trillion plan in afternoon events at the White House, meeting with top economic advisers and then hosting a round-table discussion to build support for the plan.“Today’s jobs report shows that the American Rescue Plan is urgently needed,” the president told reporters before the start of the meeting with aides. He said the jobs gains in February were likely because of a $900 billion relief bill Congress and President Donald J. Trump approved in December, and he warned that without more assistance, further gains “are going to be slow.”“We can’t go one step forward and two steps backward,” Mr. Biden said.In the Senate, lawmakers began voting on a flurry of amendments to the bill, which could pass as soon as Saturday. Democrats huddled to find agreement on last-minute tweaks to the legislation to appease centrists in their caucus.Republicans on Capitol Hill have locked arms against the bill. Some senators say their opposition comes, in part, from fears that Mr. Biden’s plan would pour too much money into a recovery that is accelerating on its own.The Biden plan “risks overheating an already recovering economy,” Senator Rob Portman, Republican of Ohio, said this week on the Senate floor, “leading to higher inflation, hurting middle-class families and threatening long-term growth.”Mr. Portman cited inflation concerns voiced in recent weeks by the Harvard economist Lawrence H. Summers, a Treasury secretary under President Bill Clinton and top economic aide to President Barack Obama. In an email this week to reporters, an aide to Senator Mitch McConnell of Kentucky, the Republican leader, highlighted reports of rising fears of American inflation among top British officials.Mr. Biden has ambitious ideas for other big programs this year, including a major infrastructure package, further fueling concerns about economic overheating. The administration insists those plans would not be inflationary because they would be offset by tax increases on the wealthy and corporations, but some economists and Democrats say they could end up being at least partly financed by deficit spending.Inflation expectations have climbed gradually since the November election, and moved up slightly after a strong jobs report on Friday. Even so, commonly cited measures show that investors are penciling in price gains just a bit above 2 percent in coming years. That is consistent with the Fed’s stated goals, and not the kind of destabilizing, runaway price gains that the economy experienced a generation ago.A closed restaurant in Phoenix this week. The president and his aides said there was still a long way to go to ensure the benefits of the recovery flow to workers hardest hit by the pandemic.Credit…Juan Arredondo for The New York TimesStill, the fact that investors are expecting growth to surge this year has mattered for markets.Bond yields have been climbing since the start of 2021, as investors anticipate a little more inflation and a rapid economic bounceback. That adjustment has caused stock prices to drop in recent weeks. Higher interest rates make it more expensive for companies to borrow and can attract money away from the stock market.As investors look for a pickup in growth and slightly faster price increases, watchers of the Federal Reserve have begun to expect that it might begin to slow its big bond purchases, which it has been using to bolster growth, and raise interest rates sooner than had been anticipated.The central bank has promised to leave interest rates near zero until the economy has achieved full employment and inflation is above 2 percent and expected to stay there for some time. If markets expect the economy to reach those goals sooner rather than later, that could be seen as an expression of optimism.“If you look at why they’re moving up, it’s to do with expectations of a return to more normal levels, more mandate-consistent levels of inflation, higher growth, an opening economy,” Jerome H. Powell, the Fed chair, said of rates during a recent congressional testimony.But markets are forward-looking: The economy has a long way to go before it will be back to full strength. Administration officials have vowed not to be distracted by improvements in high-profile numbers, like overall job growth, and instead keep pouring fuel on the recovery until historically disadvantaged groups have regained jobs, income and the benefits of other measures of economic progress.Job gains last month came in above economists’ forecasts, but it would take more than two years of hiring at the current level to return the labor market to its employment level in early 2020.In addition, while all demographic groups continue to feel economic pain, the fallout has not been evenly spread. Employment for Black workers remains nearly 8 percent below its prepandemic level, while employment for white workers is down about 5 percent. Black workers tend to lose jobs heavily during recessions, then gain them back only after a long stretch of job growth.Ms. Jones, the labor department economist, said the administration was determined to accelerate the recovery for marginalized workers, noting that Black workers, in particular, took years longer to recover from the 2008 financial crisis — a delay that left lasting scars on those households.“Nothing about the state of the world means that Black workers have to face a large amount of labor market slack,” she said. “We can choose the benchmark that we actually want to restore the economy to.”People waiting last month at a food bank in Pflugerville, Texas. The Biden administration says its stimulus package is still necessary to accelerate the recovery for marginalized workers.Credit…Ilana Panich-Linsman for The New York TimesBut even some economists who have favored substantial government spending in the past, most prominently Mr. Summers and Olivier Blanchard of the Peterson Institute for International Economics, have warned that Congress risks overdoing it by pouring so much money into the economy at a time when it is already healing.Mr. Blanchard posted on Twitter on Friday morning, comparing the big fiscal package with a snake swallowing an elephant: “The snake was too ambitious. The elephant will pass, but maybe with some damage.”Mr. Summers warned in a recent opinion piece in The Washington Post that the Biden package is going to pump far more money into the economy than it is missing, arguing that the monthly amount “is at least three times the size of the output shortfall.”One major concern is that as the government pushes money into an economy that does not need so much support, too many dollars will end up chasing too few goods and services.Fed officials do not believe that big spending is going to fundamentally change the way consumers and businesses think about prices. Inflation has been low for decades, and businesses often report that they have little pricing power in a world where technology and globalization makes competition fierce.Inflation is likely to jump temporarily this year as economic data rebounds from its very low readings last year and people spend their savings on missed vacations and restaurant dinners. But Fed officials have said there is little to suggest that such an increase would last.“I think it’s a constructive thing for people to point out potential risks,” Mr. Powell said this week during a question-and-answer session. “But I do think it’s more likely that what happens in the next year or so is going to amount to prices moving up but not staying up — and certainly not staying up to the point where they would move inflation expectations materially above 2 percent.”AdvertisementContinue reading the main story More

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    Amazon Workers’ Union Drive Reaches Far Beyond Alabama

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyAmazon Workers’ Union Drive Reaches Far Beyond AlabamaA vote on whether to form a union at the e-commerce giant’s warehouse in Bessemer, Ala., has become a labor showdown, drawing the attention of N.F.L. players, and the White House.The votes on whether to form a union at the Amazon fulfillment center in Bessemer, Ala., need to be in by the end of the month.Credit…Bob Miller for The New York TimesMichael Corkery and March 2, 2021, 5:00 a.m. ETPlayers from the National Football League were among the first to voice their support. Then came Stacey Abrams, the Democratic star who helped turn Georgia blue in the 2020 election. The actor Danny Glover traveled to Bessemer, Ala., for a news conference last week, where he invoked the Rev. Dr. Martin Luther King Jr.’s pro-union leanings in urging workers at Amazon’s warehouse there to organize. Tina Fey has weighed in, and so has Senator Bernie Sanders.Then on Sunday, President Biden issued a resounding declaration of solidarity with the workers now voting on whether to form a union at Amazon’s Bessemer warehouse, without mentioning the company by name. Posted to his official Twitter account, his video was one of the most forceful statements in support of unionizing by an American president in recent memory.“Every worker should have a free and fair choice to join a union,” Mr. Biden said.A unionizing campaign that had deliberately stayed under the radar for months has in recent days blossomed into a star-studded showdown to influence the workers. On one side is the Retail, Wholesale and Department Store Union and its many pro-labor allies in the worlds of politics, sports and Hollywood. On the other is one of the world’s dominant companies, an e-commerce behemoth that has warded off previous unionizing efforts at its U.S. facilities over its more than 25-year history.The attention is turning this union vote into a referendum not just on working conditions at the Bessemer warehouse, which employs 5,800, but on the plight of low-wage employees and workers of color in particular. Many of the employees in the Alabama warehouse are Black, a fact that the union organizers have highlighted in their campaign seeking to link the vote to the struggle for civil rights in the South.The retail workers union has a long history of organizing Black workers in the poultry and food production industries, helping them gain basic benefits like paid time off and safety protections and a means to economic security. The union is portraying its efforts in Bessemer as part of that legacy.“This is an organizing campaign in the right-to-work South during the pandemic at one of the largest companies in the world,” said Benjamin Sachs, a professor of labor and industry at Harvard Law School. “The significance of a union victory there really couldn’t be overstated.”The warehouse workers began voting by mail on Feb. 8 and the ballots are due at the end of this month. A union can form if a majority of the votes cast favor such a move.Amazon has posted signs in the facility and held meetings with workers, urging them not to unionize.Credit…Wes Frazer for The New York TimesAmazon’s countercampaign, both inside the warehouse and on a national stage, has zeroed in on pure economics: that its starting wage is $15 an hour, plus benefits. That is far more than its competitors in Alabama, where the minimum wage is $7.25 an hour.“It’s important that employees understand the facts of joining a union,” Heather Knox, an Amazon spokeswoman, said in a statement. “We will provide education about that and the election process so they can make an informed decision. If the union vote passes, it will impact everyone at the site and it’s important associates understand what that means for them and their day-to-day life working at Amazon.” The company, which went on a huge hiring spree last year as homebound customers sent its sales to a record $386 billion, recorded more than $22 billion in profit.In Alabama, some workers are growing weary of the process. One employee recently posted on Facebook: “This union stuff getting on my nerves. Let it be March 30th already!!!”The situation is getting testy, with union leaders accusing Amazon of a series of “union-busting” tactics.The company has posted signs across the warehouse, next to hand sanitizing stations and even in bathroom stalls. It sends regular texts and emails, pointing out the problems with unions. It posts photos of workers in Bessemer on the internal company app saying how much they love Amazon.At certain training sessions, company representatives have pointed out the cost of union dues. When some workers have asked pointed questions in the meetings, the Amazon representatives followed up with them at their work stations re-emphasizing the downsides of unions, employees and organizers say. The meetings stopped once the voting started, but the signs are still up, said Jennifer Bates, a pro-union worker in the warehouse.In this charged atmosphere, even routine things have become suspect. The union has raised questions about the changing of the timing of a traffic light near the warehouse where labor organizers try to talk to the workers as they are stopped in their vehicles while leaving the facility.Amazon did ask county officials in mid-December to change the light’s timing, though there is no evidence in the county records that the change was made to thwart the union. “Traffic for Amazon is backing up around shift change,” the public records stated as the reason the county altered the light.Amazon regularly navigates traffic concerns around its facilities, and wasting unpaid time in congested parking lots is a frequent gripe of Amazon workers in Facebook groups.But the retail workers’ union president, Stuart Appelbaum, questioned the timing of the request in Bessemer, coming as it did at the height of the organizing. “When the light was red we could answer questions and have a brief conversation with workers,” he said.Last week, the union questioned an offer the company made to the Alabama warehouse workers to pay them at least $1,000 if they quit by late March. Mr. Appelbaum accused the company of trying to entice employees to leave before the vote ended.“They are trying to remove the most likely union supporters from their work force by bribing them to leave and give up their vote,” he said in an interview.But “The Offer,” as it’s known among employees, was the same that Amazon made to workers at all of its warehouses around the country. It is an annual program that lets the company reduce its head count after the peak holiday shopping season without layoffs. It has been in place since at least 2014, when Jeff Bezos wrote about it in a shareholder letter.“Once a year, we offer to pay our associates to quit,” Mr. Bezos said at the time. “In the long run, an employee staying somewhere they don’t want to be isn’t healthy for the employee or the company.”Mr. Appelbaum was not swayed. He said he believed that Amazon had chosen to make the offer across all of its warehouses when it did in order to help eliminate possible “yes” votes in Bessemer.President Biden stopped short of urging the Amazon workers to unionize, but his statement instantly raised the stakes of an already momentous campaign.“Let me be really clear,” Mr. Biden said. “It’s not up to me to decide whether anyone should join a union. But let me be even more clear: It’s not up to an employer to decide that, either. The choice to join a union is up to the workers. Full stop.”He added, “Workers in Alabama and all across America are voting on whether to organize a union in their workplace. This is vitally important — a vitally important choice.” And it is one, he said, that should be made without intimidation or threats.Workers around the country, including Seattle, have expressed support for the union vote in Alabama.Credit…Jason Redmond/Agence France-Presse — Getty ImagesDespite the union’s suspicions, it has not filed any formal complaints with the National Labor Relations Board, Mr. Appelbaum said. Typically, unions can raise objections to a company’s tactics before an election and the labor board can step in.If a complaint were to be filed, the labor board could potentially determine that the election is invalid because of Amazon’s actions. But after working for months to build support inside and outside the Amazon warehouse, the last thing the union wants is for the labor board to intervene and rule that the election must be held again. The voting has already been taking place in Bessemer for nearly a month.Mr. Sachs, of Harvard Law School, said that despite Mr. Biden’s admonishments of companies’ interfering in elections, the current labor law does allow Amazon to hold certain mandatory meetings with workers to discuss why they shouldn’t unionize and enables the company to post anti-union messages around the workplace.“It is very helpful that the president is calling out these tactics, but what we need is a new labor law to stop companies from interfering,” he said.It is rare for such a large union election to be held by mail. Over Amazon’s objections, the labor board required a mail-in vote after determining that federal election monitors would be at risk of contracting Covid-19 if they had to travel to Bessemer to oversee in-person voting.By pushing back aggressively against the union, Amazon risks angering Democrats in Washington, many of whom are already calling for more antitrust scrutiny of big tech companies, whose businesses have grown even larger in the pandemic. Amazon has mounted a public campaign supporting legislation to raise the federal minimum wage to $15 an hour, buying prominent ads in The New York Times, The Washington Post and other publications.In his video on Sunday, President Biden specifically mentioned how unions can help “Black and brown workers” and vulnerable workers struggling during the economic crisis brought on by the pandemic.Ms. Bates, 48, one of the leaders of the union drive, started working at the Bessemer warehouse in May.She said she felt insulted by some of Amazon’s anti-union efforts, particularly the company’s statements to the staff that they would be required to pay nearly $500 in union dues every year. Because Alabama is a right-to-work state, there is no such requirement that a union member pay dues.“It angers me a little bit because I feel like they know the truth and they won’t tell the truth and are taking advantage because they know employees come from a community that is looked on as Black and low income,” said Ms. Bates, who is Black. “It felt really horrible that you would stand there and mislead people intentionally. Give them the facts and let them decide.”AdvertisementContinue reading the main story More

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    Why Are There So Few Black Economists at the Fed?

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    #masthead-section-label, #masthead-bar-one { display: none }The Jobs CrisisCurrent Unemployment RateWhen the Checks Run OutThe Economy in 9 ChartsThe First 6 MonthsJ. Monroe Gamble IV pushed for changes to the hiring process at the Federal Reserve Bank of San Francisco.Credit…Christopher Smith for The New York TimesSkip to contentSkip to site indexWhy Are There So Few Black Economists at the Fed?Monroe Gamble became the San Francisco Fed’s first Black research assistant in 2018. His path shows why fixing a striking diversity shortfall will take commitment.J. Monroe Gamble IV pushed for changes to the hiring process at the Federal Reserve Bank of San Francisco.Credit…Christopher Smith for The New York TimesSupported byContinue reading the main storyFeb. 2, 2021, 5:00 a.m. ETWASHINGTON — J. Monroe Gamble IV was the first Black research assistant to work at the Federal Reserve Bank of San Francisco. He started in 2018.That one data point speaks to a broader reality: Even as America’s central bank dedicates research and attention to racial economic outcomes and publicly champions inclusion, it has had a poor record of building a work force that looks like the population it is meant to serve.Many parts of the Fed system, which includes the Federal Reserve Board in Washington and 12 regional banks, began to concentrate more intently on diversifying their heavily white economics staffs only within the last decade, prompted in part by the 2010 Dodd Frank Act, which pushed the board to hire more broadly. When it comes to employing Black economists in particular, the central bank still falls short.Officials have often blamed the pipeline — Ph.D. economists are heavily white and Asian — but a New York Times analysis suggests the issue goes even beyond that. Black people are less represented within the Fed than in the field as a whole. Only two of the 417 economists, or 0.5 percent, on staff at the Fed’s board in Washington were Black, as of data the Fed provided last month. Black people make up 13 percent of America’s population and 3 to 4 percent of the U.S. citizens and permanent residents who graduate as Ph.D. economists each year.Practices that favor job candidates with similar life experiences and those from elite economics programs, which are often heavily white, have sometimes prevented diverse hiring, current and former employees said. A brash culture can make some parts of the central bank unwelcoming, which can lower retention. More

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    Who Owns Stocks? Explaining the Rise in Inequality During the Pandemic

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    #masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesVaccine InformationTimelineWuhan, One Year LaterAdvertisementContinue reading the main storyUpshotSupported byContinue reading the main storyWho Owns Stocks? Explaining the Rise in Inequality During the PandemicBad economies usually hurt both workers and investors. Only the first part has been true this time.Jan. 26, 2021, 5:00 a.m. ETLast year featured a devastating public health crisis, an imploding job market, a heavy dose of political tumult and — surprisingly — a roaring stock market.Add it all up, and a major consequence was an expansion of inequality in a nation where economic disparity was already on the rise.It boils down to which groups were hurt most by the sinking parts of the economy and which ones benefited most from the rising share prices.In the brick-and-mortar part of the economy, lower-wage workers were disproportionately affected by the job losses. At the same time, Americans benefited from gains in share prices: both people who own individual stocks in brokerage accounts and those who own stocks in personal retirement accounts, like mutual fund IRAs, or in those offered by employers, such as 401(k)s.Yet that’s where even more disparity kicked in, an analysis of data from the Federal Reserve’s 2019 Survey of Consumer Finances shows. Although the distribution of income is unequal in the United States, ownership of financial assets in general and stocks in particular is even more so.
    [embedded content]The survey, conducted every three years, collects exhaustively detailed financial information from a sample of American “economic units” — we’ll call them families — including income, the types of assets they own and what those assets are worth.An analysis of this data shows that in 2019, the top 1 percent of Americans in wealth controlled about 38 percent of the value of financial accounts holding stocks. Widen the focus to include the top 10 percent, and you’ve found 84 percent of all of Wall Street portfolios’ value.Using the broadest definition of Wall Street involvement, which includes everything from workplace 401(k)s to mutual funds, just over half of American families have at least one financial account tied to the market, while just one in six report direct ownership of stock shares. Wealthier people are far more likely to have these accounts than middle-class families, who in turn are far more likely to be in the market than working-class or poor families.And the wealthy, not surprisingly, are more likely to have larger portfolios.A paper-napkin calculation that assumes all market participants averaged last year’s 16 percent gain in the S&P 500 would mean that American families fattened their portfolios by $4 trillion over all last year. But $3.4 trillion of that would have gone to just 10 percent of families, leaving the other 90 percent to split $600 billion.Beyond the gap in holdings between the very rich and the merely affluent, there is also a gap between the affluent and the middle class. Only half of households in the 40th-to-49th percentiles of net worth have any brokerage or retirement accounts that include stocks. But among households in the 80th-to-89th percentiles, 84 percent are invested in at least one holding.Wealth and the Role of Stock PricesWhen the market surged last year, wealthier families benefited more. Not only do they have larger portfolios than middle-class and poorer investors, but they also are far more likely to be invested in the market in the first place.Percent of families with investments by net worth percentile:
    [embedded content] Poorest group includes unsuccessful or highly leveraged investors with low net worth.Source: The New York TimesMoreover, the median portfolio size for households in that middle group was $13,000 in 2019, and so would have gained about $2,000 in last year’s market. The typical family in the wealthier group had $170,000 in the market and would have gained about $27,000 with a similar portfolio.These wealth differences are far starker than the inequality we usually talk about on the income ladder.The Coronavirus Outbreak More

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    H. Jack Geiger, Doctor Who Fought Social Ills, Dies at 95

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    AdvertisementContinue reading the main storySupported byContinue reading the main storyH. Jack Geiger, Doctor Who Fought Social Ills, Dies at 95He used medicine to take on poverty, racism and the threat of nuclear destruction. Two groups he helped start won Nobel Peace Prizes.Dr. H. Jack Geiger in 2012. He believed doctors should use their expertise and moral authority to improve conditions like poverty, hunger, discrimination, joblessness and lack of education.Credit…Angel Franco/The New York TimesDec. 28, 2020, 3:17 p.m. ETDr. H. Jack Geiger, who ran away to Harlem as a teenager and emerged a lifelong civil rights activist, helping to bring medical care and services to impoverished regions and to start two antiwar doctors groups that shared in Nobel Peace Prizes, died on Monday at his home in Brooklyn. He was 95.His death was confirmed by David Shadrack Smith, his stepson.Dr. Geiger was a leading proponent of “social medicine,” the idea that doctors should use their expertise and moral authority not just to treat illness but also to change the conditions that made people sick in the first place: poverty, hunger, discrimination, joblessness and lack of education.“Jack redefined what it meant to be a physician,” said Dr. Irwin Redlener, the founding director of the National Center for Disaster Preparedness at Columbia University and the co-founder of the Children’s Health Fund. He added, by email, “He felt it was our right and responsibility as doctors to ‘treat’ hunger, poverty and disparities in health care, as directly and openly as we treat pneumonia or appendicitis.”The social order, not medical services, determines health, Dr. Geiger said in “Out in the Rural,” a short documentary film made in 1970 about the first community health center in Mississippi. “I’ve never seen any use in what I call the Schweitzer bit,” he added, referring to the humanitarian Dr. Albert Schweitzer, “which is the idea that you stand around in whatever circumstances laying hands on people in the traditional medical way, waiting until they’re sick, curing them and then sending them back unchanged into an environment that overwhelmingly determines that they’re going to get sick.”In the 1960s, Dr. Geiger was a co-founder, with Dr. Count Gibson, of community health centers in South Boston and in Mound Bayou, in the Mississippi Delta. They provided desperately needed health care but also food, sanitation, education, jobs and social services — what Dr. Geiger called “a road out” of poverty. The centers inspired a national network of clinics that now number more than 1,300 and serve about 28 million low-income patients at more than 9,000 sites.“I don’t know if some of the Mississippi white power structure cares about dead Black babies or not,” Dr. Geiger said in the film, about the first center in Mississippi. “But if they don’t, even they can’t afford to say so publicly. We have been able to enter and to do things under the general umbrella of health that would have been much harder to do if we’d said we were here for economic development or for social change per se.”Dr. Geiger, second from left, treating a baby in Bolivar County, Miss., where he co-founded a community health center.Credit…Dan Bernstein, UNC Southern Historical CollectionDr. Geiger was a founding member of two advocacy groups, Physicians for Social Responsibility, which shared the 1985 Nobel Peace Prize for its efforts to end the nuclear arms race, and Physicians for Human Rights, which shared the 1997 prize for working to ban land mines.He rallied doctors in the Cold War era to speak out against what he saw as a myth being promoted by the government, that nuclear war could be survivable. On the contrary, he insisted, hospitals would be quickly overwhelmed, and even victims with treatable injuries would perish.Drawing physicians out of the clinic and into the political fray “was a really signal event,” said Dr. Robert Gould, a pathologist in San Francisco and president of the Bay Area chapter of Physicians for Social Responsibility.In an email for this obituary sent in 2012, Dr. Geiger said he was driven in part by an outrage over injustice.“I’ve been angry,” he wrote, “seeing terribly burned children in Iraq after the first Gulf war, or interviewing torture victims in the West Bank, or listening to Newt Gingrich say ghetto kids should learn to be part-time janitors and clean toilets (in another country, they called that Bantu Education). So anger doesn’t vanish, but is replaced by a determination to do something.”Home Was a Way StationHerman J. Geiger was born on Nov. 11, 1925, in Manhattan. (It was unclear what the J. stood for, but he was mostly called Jack throughout his life.) His father, Jacob, born in Vienna, was a physician; his mother, Virginia (Loewenstein) Geiger, who came from a village in central Germany, was a microbiologist. Both parents, who were Jewish, had emigrated to the United States as children. Mr. Geiger grew up on the Upper West Side of Manhattan, and their home was often a way station for relatives fleeing the Nazis.“The last to appear were some cousins from my mother’s birthplace, Kirtorf,” Dr. Geiger said in the email. “When they got their visas to come to the U.S., they said, the Nazi authorities were furious. On the night before their departure, the authorities ordered all their neighbors to go out at twilight and stone their house. The neighbors all dutifully gathered — and threw loaves of bread instead.”That story, Dr. Geiger said, taught him not to stereotype.He skipped so many grades in the city’s public schools that he graduated from Townsend Harris High School (then in Manhattan, now in Queens) at 14. Too young to start college, he learned typing and shorthand and went to work as a copy boy for The New York Times. He also began hanging out at jazz joints, listening to Billie Holiday, Art Tatum and Fats Waller. His parents were often beside themselves, waiting up for him and sometimes even calling the bars to ask if “Jackie” was there.Jack soon ran away from home and turned up, suitcase in hand, in Harlem’s Sugar Hill section on the doorstep of Canada Lee, a Black actor whom he had seen on Broadway and had gotten to know after talking his way backstage. Mr. Lee, once a teenage runaway himself, let young Jack sleep on the couch — after consulting with his parents — and though Jack sometimes returned home, he spent most of the next year in Harlem. The year was 1940, and Mr. Lee’s home was a hub for writers, actors and musicians — Langston Hughes, Richard Wright, Orson Welles, Paul Robeson, Billy Strayhorn, William Saroyan. The Black guests told harrowing stories of racism, and Harlem was seething over the mistreatment of Black troops at military bases in the South. Jack Geiger took it all in.In 1941, with a loan from Mr. Lee, he began studying at the University of Wisconsin. He worked nights at a newspaper, The Madison Capitol Times. Because Madison had a curfew for anyone under 18, he said, “I am probably the only police reporter in history who had to get a special pass to be out at night.”In 1943, after meeting James Farmer, the founder of the Congress of Racial Equality, Mr. Geiger started a chapter of the group in Madison. It was the height of World War II, and after turning 18 that year he left school to enlist in the merchant marine, which he chose because it was not racially segregated.When Dr. Geiger arrived in the all-Black Mississippi Delta town of Mound Bayou in the 1960s, he found conditions there as desperate as those he had seen in the poorest areas of South Africa.Credit…Dan Bernstein, UNC Southern Historical CollectionRabble Rouser for JusticeDischarged in 1947, Dr. Geiger enrolled as a pre-med student at the University of Chicago. He discovered racial discrimination there — Black patients being excluded from certain hospitals, qualified Black students being rejected by the medical school. He fought the policies for three years and ultimately helped organize a 1,000-strong faculty and student protest strike — an activity virtually unheard of in that era.He paid a price for his rabble-rousing. The American Medical Association wrote to medical schools warning of his “extracurricular activities.” No school would take him. He had, in effect, been blackballed.Dr. Geiger went back to journalism for the next five years, as a science and medicine editor for the International News Service (later part of United Press International). It was, he said, “a gorgeous education” that let him read journals, attend conferences, interview researchers and, significantly, meet deans whom he could lobby to let him into medical school. In 1954, at 29, he was admitted to what is now Case Western Reserve University’s medical school in Cleveland.During his last year at Case Western, he traveled to South Africa and worked with two physicians who were setting up a health center in an impoverished, disease-ridden region of the country called Pholela, which was then a Zulu reserve. A key to the center’s success was that local people — its own patients — worked there and helped run it.For five months Dr. Geiger took care of patients, visiting thatch huts and cattle kraals, meeting traditional healers and seeing the huge improvements — pit latrines, vegetable gardens, children’s feeding programs — that the health center had brought to the region.“I learned a little Zulu, including the three oral clicks in that language, which always made me drool, to the hilarity of my African teachers,” he wrote in a chapter he contributed to the 2013 book “Comrades in Health.”Dr. Geiger’s time in Africa made him want a career in international health. He trained in internal medicine at Boston City Hospital and in epidemiology at the Harvard School of Public Health.In the “freedom summer” of 1964, he traveled to Mississippi to help care for the civil rights workers who were pouring into the Deep South to campaign for voting rights. The next year, he organized medical care for the people who marched with the Rev. Dr. Martin Luther King Jr. from Selma to Montgomery, Ala.“I took a long look around,” Dr. Geiger recalled of his first visit to Mississippi. He saw conditions much like those in South Africa: families living in shacks with no clean drinking water, toilets or sewers; sky-high rates of malnutrition, illness, infant death and illiteracy; few or no opportunities for residents to better themselves and escape. He did not have to travel to Africa to find people in trouble, he realized.Mound Bayou in the 1960s. Dr. Geiger originally traveled to Mississippi in 1964 to treat civil rights workers and realized he could do more.Credit…Dan Bernstein, UNC Southern Historical CollectionA Clinic in Mound BayouUnder President Lyndon B. Johnson, the war on poverty had begun, and the Office of Economic Opportunity had been created to pay for projects to help the poor. Sponsored by Tufts University and armed with grants from the opportunity office, Dr. Geiger, Dr. Gibson, Dr. John Hatch and others set up a health center in Mound Bayou, Miss., a poor, Black small town where most people were former cotton sharecroppers whose way of life had been wiped out by mechanization.The center was a copy of the Pholela project. The clinic, which opened in 1967, treated the sick but also used its grant money to dig wells and privies and set up a library, farm cooperative, office of education, high-school equivalency program and other social services.The clinic “prescribed” food for families with malnourished children — to be purchased from Black-owned groceries — and the bills were paid out of the center’s pharmacy budget.The governor complained, and a federal official was sent to Mound Bayou to scold Dr. Geiger for misusing pharmacy funds, which, the official said, were meant to cover drugs to treat disease.“Yeah,” Dr. Geiger replied, “well, the last time I looked in my medical textbooks, they said the specific therapy for malnutrition was food.”The official, he said, “shut up and went back to Washington.”Dr. Geiger in 1966 with Dr. John Hatch during construction of a community health center in Mound Bayou, Miss. They, along with Dr. Gibson, secured government grants and a sponsorship from Tufts University to bring more social services to the area.Credit…Jack Geiger, via Associated PressDr. Geiger helped found Physicians for Social Responsibility in 1961. The group argued that official predictions of the effects of nuclear war minimized the number of casualties and the extent of the destruction it would cause. At the group’s public meetings, Dr. Geiger’s job was “the bombing run” — offering a detailed account of what a one-megaton nuclear bomb would do to the city in which the meeting was being held.He had a resonant voice and a crisp, forceful delivery. His presentations left audiences stunned, according to a colleague in the group, Dr. Ira Helfand.Dr. Geiger was a co-author of one of the first articles to look at the medical costs of nuclear war. The article, in The New England Journal of Medicine, predicted the fate of Boston in a nuclear strike — 2 million dead, a half-million injured and fewer than 10,000 hospital beds left in the entire state of Massachusetts. Doctors must “explore a new area of preventive medicine, the prevention of thermonuclear war,” the article said.It was published in May 1962 — five months before the Cuban missile crisis, which took the United States and the Soviet Union to the brink of nuclear war.Dr. Geiger’s marriage in 1951 to Mary Battle, an administrator and executive assistant in health care, ended in divorce in 1968. They had no children. (Ms. Battle died in a car accident in 1977.) In 1982, he married Nicole Schupf, a neuroscientist, epidemiologist and professor at Columbia University.In addition to his wife and his stepson, Mr. Smith, Mr. Geiger is survived by two stepgrandsons. An older sister, Ruth Ann, a schoolteacher, died in 1986.In 1978, Dr. Geiger became a professor of community medicine at the City University of New York Medical School at City College of New York.In his final years, which were marked by bladder cancer, lung cancer and blindness from glaucoma, he continued to write book chapters, articles and editorials and to give talks.To the end he was an impassioned advocate for civil rights. In an essay published in 2016 by Physicians for Human Rights, he called for more action to fight the lead-poisoning of the water supply in Flint, Mich., and to hold accountable the officials responsible for it.With characteristic bluntness, he ascribed the contamination to “a contemptuous disregard for the health of people of color, especially if they are poor.”Alex Traub contributed reporting.AdvertisementContinue reading the main story More

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