Coronavirus is further punishment for the poor
AMARCH 15 New York Times article by Max Fisher and Emma Bubola ‘Coronavirus deepens inequality, inequality worsens its spread’ confirmed what I had already suspected: the coronavirus has a mutual reinforcing cycle with economic and social inequality. This is the case globally and it is even more so the case in spaces like Jamaica that is without an adequate social security system for its at-risk population.
We know already that the coronavirus is dangerously deadly for persons over 70 years old and even more so for those with pre-existing chronic health issues such as heart disease, diabetes, who are immunocompromised and who are recovering from cancer. What is not as apparent is that for persons in the lower economic rungs, it is persons over 55 (extreme vulnerability starts 15 years younger).
Also, persons in the lowest economic rung of the ladder are 10 times more likely to have chronic illnesses. This means that the impact of the virus is most devastating to the poor and economically vulnerable. This is the point that has been borne out by the Chinese Centre for Disease Control in respect of coronavirus.
What we have observed is that in societies where the virus hits, it is deepening the consequences of inequality, pushing many of the burdens on to those who were being left behind by today’s polarised economies and labour markets. Research suggests that those in lower economic strata are likelier to catch the disease. They are also likelier to die from it.
And even for those who remain healthy, they are likelier to suffer loss of income or healthcare as a result of quarantines and other measures, potentially on a sweeping scale.
The question that must be contemplated is what happens to those who work in the service economy, those who operate in the gig economy, the 40 per cent of Jamaica’s labour market that are employed in the informal economy? What of those who survive on tips, what will they do when the economy slows down? What about those who operate in the shadows, how will they eat? I think we may well slow the rate of contagion but complicate our social problems profoundly.
These questions must be contemplated alongside the issues facing parents who have no substitute for day care or for school to supervise their children while they go to work. We must also face the issues of providing support for the critically needed health workers, how will they be transported to and from work and how will their children be supervised while they are being called upon to render yeoman service.
There are also those who cannot afford to provide the breakfast that their children eat at school because of the provision by the State. Also a not-to-be forgotten category is tertiary students who have no digital access (Internet access) at home or even in their communities. These are the persons who have no equity in the society and are operating on the margins.
A FEW SUGGESTIONS
What is the response of public policy? Here are few suggestions that I think may be worthy of consideration.
1. First, I think that it is necessary for the Government to set up food banks. I think this will become necessary, as persons will face genuine difficulties in buying food for themselves and their dependents in inner city communities and generally across the society, because people will lose income.
2. Secondly, I think that for the next eight weeks initially, we should move to a zero interest rate regime to allow persons who suffer a cut in their incomes to be unable to service their mortgage and debt obligations. The principal will be outstanding but they will not be penalised in a period of economic slowdown over which they have no control.
National Water Commission should cease all water lock-offs, even for those who are delinquent in their bills, as hygiene is critical – Government must truck water to everyone without water.
3. Thirdly, I think a lockdown of hotels is coming, and other sectors, so layoffs are inevitable. Private sector will have to work out an arrangement with employees who won’t get pay cheques, and maybe Government can provide some fiscal help. The Franklin D Roosevelt model of direct employment should be considered, and in its absence making extraordinary payments through PATH.
In the absence of some creative, direct intervention aimed at the people at the bottom of economic rung of the society, not only do the number of coronavirusrelated cases stand to increase and to linger with us for a while, but we are also at risk of food riots.
If the above points are not addressed to cushion the blow to the employees and self-employed, there probably will be unrest.