Unfortunately for many, working remotely was not an opportunity that could be afforded to them. I think it’s safe to say that no sector of the American economy was hit harder than the service industry, particularly restaurants and bars. Stay-at-home orders began to spread across the country and initial “lockdown orders” restricted dining establishments to operate as take out and delivery only.
For many, removing the “sit-down” aspect of a sit-down restaurant basically turns many places into a significantly slower and vastly more expensive fast food joint. Unsurprisingly, business tanked and most restaurants were forced to layoff most if not all of their employees in order to not go out of business.
The unemployment rate in the United States skyrocketed, at one point reaching nearly 15% in April, 2020. For context that means that almost 1 out of every 7 Americans was out of a job. With no way to make money, people were at risk of not being able to pay their bills and losing the roof over their heads.
To stave off a full blown economic collapse the likes of which hasn’t been seen since the Great Depression, the government passed a wide range “rescue” packages to ease the pain of the people. Stimulus checks were sent out to help pay bills, a moratorium on evictions was placed to keep people from ending up on the streets in the middle of a pandemic, and possibly most importantly, those on unemployment insurance (UI) would receive an additional $600 per week on top of whatever they would have received normally. That extra $600 per week was unprecedented in both its scope as well as its ability to open the eyes of the working class in this country.
The current federal minimum wage of $7.25 means that someone working a full, 40-hour work week, is only making $290 a week before taxes. Although states are allowed to set their own minimum wage as long as it’s higher than the federal rate, 20 states still continue to pay their workers the lowest they are legally allowed to.
Those increased unemployment benefits meant that people in certain parts of the country were now making two or almost three times as much as they were working their normal job(s). Not only were they making ends meet, but many saw their quality of life actually improve.