Where is Next Month’s Check?

Congratulations, America! You just had your first taste of socialism. The federal government wrote you a check for $1,200. For those on unemployment, it was an additional $2,400 per month. That is rather ironic that the current administration was adamant that socialism is bad. We were so quick to attack Bernie Sanders and any other candidate that floated the idea of increasing social programs across the country. But then, in a matter of days, we signed one into law anyway. Granted, these are extraordinary times.  Weekly unemployment numbers are increasing at a mind-blowing rate while of those that are working, only 30% of them are able to work from home. Something had to be done. 

The Grim Reaper arrived early for brick-and-mortar stores

We have entire industries and segments of workers displaced by this economic calamity. Take Retail for example. The Grim Reaper arrived early for brick-and-mortar stores thanks to stay-at-home orders and physical distancing protocols. These businesses were forced to rethink their entire operating model, instantly putting roughly 25% of the American workforce at risk of losing their job. To survive, they’ve had to transition their operations online, decreasing their physical store presence. That transition, originally expected to take 10 years, has been expedited in 10 weeks, leaving many employees to question if they will even have a job to come back to after COVID-19. 

This is only one example of a recurring theme in America: sometimes the economy transitions faster than its workers. You can see that from the coal mining towns of West Virginia and Wyoming to the bustling tech hubs of the West Coast; the latter, plagued with eye-popping rents that often force workers out of the city. The economy is a mean bitch and will quickly displace people when economic interest changes. This current crisis has forced the hand of our elected officials to give Americans direct cash, yet again. The impact of the program is unknown but it does provide a glimpse on how Universal Basic Income benefits Americans during times of transition and provides needed safety in times of uncertainty.

These freshly printed checks have enabled the most vulnerable families to keep food on their table, pay bills, and have financial breathing room, while at the same time, empowering other families to pay down debt, contribute to retirement accounts, and support struggling businesses. The stay at home order flattened the Coronavirus curve, while the stimulus check flattened the inverted curve of debt, depression, and poverty. These outcomes directly help Americans but are counter to our previous bailout tactics. This may be a short lived experience, but we should think deeply about how this contribution from the government has impacted our lives and if this is something we want to see happen again. 

I know many of you are turning red in the face, upset that America has decided to solve this problem using direct cash payments. You were taught that the American Dream was about individual responsibility and that free handouts threaten that dream. I believed this too. Then it was I who needed help. I was a college student pursuing a degree in computer engineering, with hopes of joining one of the premier technology companies. Those countless hours pouring over mathematical equations, learning about circuits, and writing code were at risk by events out of my control. Was I not deserving? Does needing help while trying to do better for myself make me irresponsible? Would my American Dream suddenly turn into a nightmare just because I received a “handout”?

As we slowly enter back into society from our homes, the world we know will have changed. Our economy will look and operate differently to address the missteps of the old. We will face challenges that will have only magnified such as income inequality, healthcare, housing, and global warming. There will not be a single policy that will ultimately solve these problems, but universal basic income is starting to look like a component of the solution. Today, it is preventing some of us from falling into economic despair. Tomorrow, it may help balance the power between worker and employer. 

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