Pandemic Worsens New York City Economic Crisis
Homeless in NY. (Photo Credit: Pixabay )
By Thalia Mallol
The pandemic has pushed New Yorkers’ cost of living crisis from bad to worse. Before COVID-19 hit, the cost of living in the city was steadily increasing. Now widespread unemployment has deepened people’s financial distress.
“I had no money saved in my account before COVID-19. I haven’t been ready for any emergency expenses,” said Julia Fernandez, 36, a Lehman sophomore majoring in early childhood education. She works as a retail associate at Marshall’s and as a home attendant and said that she needs both jobs to continue paying her rent, one of the many bills she must pay.
Economy crisis (Photo Credit: Pixabay)
“The amount of money I have left in my bank account is less since I faced some emergencies during the year. I had to pay for a new transmission for my car and send money to my father for medicine and food. Most of the time I need to use the credit card [to] pay all my bills.”
According to StreetEasy, New Yorkers pay the most for transportation compared to residents of other states. The city is also one of the most expensive places for dining out. Path reported in 2019 that childcare in New York can be more expensive than college, annually totaling more than $15,000.
Business Insider reported that a New Yorker with a salary of $21.63 per hour would still need to work 72 hours per week to afford a comfortable lifestyle. Curbed New York stated that over 50 percent of the average New Yorker's salary is spent on household expenses.
For those making minimum wage, the pressure is more severe. Research by NYU students concluded that the city’s low-income families have been experiencing a big impact due to gentrification. After many years in a neighborhood, families need to flee because they can't afford the high rent and increasing market prices. Coalition for the Homeless demonstrated that in March 2020, there were 60,923 individuals living in shelters.
Gentrifications in harlem NYC. (Photo Credit: to Pixabay)
Some New Yorkers emphasized that their financial outlook has worsened during this pandemic.
Yacouba Idrissa, a Hostos Community College freshman, 24, was working on his training as a paraprofessional for the New York City Department of Education, the week before New York City Mayor Bill DeBlasio ordered to close all school. This caused Idrissa to search for another job. He is working around 16 hours per day with a minimum salary of $15 per hour.
“I have been working long hours because many workers are requiring sick days because they are afraid to get contagious with the virus,” he explained. “The crisis is affecting my income since I mainly depended on the paraprofessional salary to support my mother and brother. The care company that I am working as a direct support professional for is only paying $25 per hour after 8 hours. It is not worth it because I am risking my life and my mother’s life if I bring the virus to our home. I do not really consider it helpful to us.”
Rivera Sorrentini, 65, a taxi driver from the Bronx, is one of many New Yorkers who said he is struggling to survive daily and had to stop working because of the spread of the virus. “This pandemic is causing an economic imbalance in my household,” he said. “My daughter had to go on unemployment and my wife is working fewer hours than before.”
“This pandemic is causing an economic imbalance in my household.”
The Center for New York City Affairs predicted that 1.2 million people are at risk to remain without a job by the end of April 2020. Poverty is increasing while this year’s federal budget is cut $3.5 billion less than last year.
The New York Times reported DeBlasio stated, the state budget for 2021 would be cut by $2 billion dollars, which would be affecting municipal services. This is in order to cover the coronavirus expenses.
“I feel that my life is monotonous working hard to pay for everything and not being able to enjoy my efforts, and it would be worse now with COVID-19,” Fernandez said.