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Black households face greater financial devastation due to COVID-19 shutdowns
New research spotlights how low-income Black households face greater financial distress and vulnerability as a result of the pandemic economic crisis.
- A paper by a team of Princeton researchers highlights devastating socioeconomic inequalities between racial groups worsened by the pandemic shutdowns.
- By the middle of June, the rates of new debt were similar for Black and Latinx households at more than 80%, while about 70% of white households reported new debt.
- When the pandemic ends, tens of millions of households will still find themselves stuck in a devastating financial hole, and a disproportionate amount of those will be Black and Latinx households.
Researchers from the Princeton School of Public and International Affairs are reporting that low-income Black households are facing greater economic precarity and vulnerability as a result of the COVID-19 pandemic as compared to white or Latinx low-income households.
A snowballing crisis
We've known that COVID-19 has been disproportionately fatal to Black Americans as compared to white, non-Latinx Americans, and that these deaths (as well as hospitalizations) have shone a nasty light on racial disparities undergirding the U.S. healthcare system. But now a team of researchers from the Princeton School of Public and International Affairs are highlighting devastating socioeconomic inequalities exacerbated by the pandemic. Their report details how low-income Black households experienced higher rates of job loss, greater uncertainty accessing food and medical resources, and higher rates of debt than white or Latinx low-income households.The paper, published in the journal Socius, is the first of its kind offering systemic, comprehensive, and descriptive estimates of the impacts of COVID-19 crisis on low-income Americans from March 2020 to mid-June. The authors' findings spotlight a snowballing crisis in which a growing number of families with low-income reported financial insecurity, then took on more debt to manage their expenses for resources.
The authors aimed to determine the economic impacts of the pandemic on lower income Americans, and spotlight racial disparities within that socioeconomic group. They analyzed factors a family needs to satisfy basic survival needs including job loss, housing instability, and insecurity around food and medical resources.
"Media coverage has focused on the racially disparate effects of Covid-19 as a disease, but we were interested in the socioeconomic effects of the virus, and whether it tracked a similar pattern," said study co-author Adam Goldstein, assistant professor of sociology and public affairs at Princeton's School of Public and International Affairs in a Princeton University press release.
Goldstein noted that it was clear that Black households in America were disproportionately affected amongst low-income households who struggled at the beginning of the pandemic.
"Even among low-income populations, there is a marked racial disparity in people's vulnerability to this crisis," said study co-author Diana Enriquez, a doctoral candidate in Princeton's Department of Sociology.
For the study, the researchers used data that came from two different tracking surveys. The primary data source was a bimonthly survey series of Supplemental Nutritional Assistance Program (SNAP) recipients. The respondents were recruited through the mobile app, FreshEBT, for managing SNAP benefits. Also used was the U.S. Census Bureau's publicly available Household Pulse Survey, which is drawn from representative household samples rather than solely from program recipients. Using these sources, the authors surveyed people who were using the SNAP and Temporary Assistance for Needy Families (TANF) benefits prior to the COVID-19 crisis. Several waves of surveys were sent out between the end of March and mid-June, a window of time when Americans were starting to feel the first economic hits of the shutdowns, but before their economic status had been transformed in a major way.
Participants were asked about their present and perceived situation related to employment status, housing status, ability to access food and medical resources, and amount of debt. For instance, survey respondents were asked if they currently had stable housing and also if they believed their housing status would be stable after that 30-day period.
The authors found that lower-income Americans who were already receiving government assistance had experienced major impacts in all areas except for housing status. Here were the major findings from each survey wave between the end of April and mid-June:
- Nearly 35 percent of all survey respondents reported losing their jobs by mid-June.
- 67 percent said that they missed paying at least one bill at the beginning of the shutdown.
- 77 percent of households reported missing a bill or payment on their rent.
- 54 percent of individuals said they had skipped meals, were dependent on friends and family for food, or had visited a food pantry due to the shutdown, despite being covered by SNAP. (This figure rose to 64 percent by the end of the month of June.)
But when the researchers looked at the data in race categories, it was clear that, on average, low-income Black households had taken much greater hits than low-income white households had. The magnitude of racial differences varied across indicators and data sources, but Black respondents fared consistently worse than non-Hispanic whites in both survey data sets, and Latinx respondents fared worse than whites in the Household Pulse Survey.
Here were the major findings when evaluated on race:
- At the start of April 2020, 30 percent of Black households reported a job loss. By the end of the month that number rose to 48 percent.
- 80 percent of Black households surveyed reported taking on greater debt to cover their bills by the end of April 2020.
- By the middle of June, the rates of new debt were similar for Black and Latinx households at more than 80 percent, while about 70 percent of white households reported new debt.
These survey results have put a magnifying glass on how badly the COVID-19 pandemic has impacted vulnerable households who were already living near the poverty line.
"Research shows that these types of debts and unpaid bills — even small ones — can compound over time and trap low-income households in a cycle of financial distress," Goldstein said. And when the survey results are analyzed for differences amongst racial groups, it's clear that those most vulnerable to this snowballing financial devastation are Black and Latnix households.
Ultimately, this research shines a light on a disturbing truth emphasized by Goldstein: "Even in a miraculous scenario where the pandemic ends in a few months and low-wage workers are rehired, tens of millions of households will still find themselves stuck in a financial hole without additional infusions of economic relief."
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Certain water beetles can escape from frogs after being consumed.
- A Japanese scientist shows that some beetles can wiggle out of frog's butts after being eaten whole.
- The research suggests the beetle can get out in as little as 7 minutes.
- Most of the beetles swallowed in the experiment survived with no complications after being excreted.
In what is perhaps one of the weirdest experiments ever that comes from the category of "why did anyone need to know this?" scientists have proven that the Regimbartia attenuata beetle can climb out of a frog's butt after being eaten.
The research was carried out by Kobe University ecologist Shinji Sugiura. His team found that the majority of beetles swallowed by black-spotted pond frogs (Pelophylax nigromaculatus) used in their experiment managed to escape about 6 hours after and were perfectly fine.
"Here, I report active escape of the aquatic beetle R. attenuata from the vents of five frog species via the digestive tract," writes Sugiura in a new paper, adding "although adult beetles were easily eaten by frogs, 90 percent of swallowed beetles were excreted within six hours after being eaten and, surprisingly, were still alive."
One bug even got out in as little as 7 minutes.
Sugiura also tried putting wax on the legs of some of the beetles, preventing them from moving. These ones were not able to make it out alive, taking from 38 to 150 hours to be digested.
Naturally, as anyone would upon encountering such a story, you're wondering where's the video. Thankfully, the scientists recorded the proceedings:
The Regimbartia attenuata beetle can be found in the tropics, especially as pests in fish hatcheries. It's not the only kind of creature that can survive being swallowed. A recent study showed that snake eels are able to burrow out of the stomachs of fish using their sharp tails, only to become stuck, die, and be mummified in the gut cavity. Scientists are calling the beetle's ability the first documented "active prey escape." Usually, such travelers through the digestive tract have particular adaptations that make it possible for them to withstand extreme pH and lack of oxygen. The researchers think the beetle's trick is in inducing the frog to open a so-called "vent" controlled by the sphincter muscle.
"Individuals were always excreted head first from the frog vent, suggesting that R. attenuata stimulates the hind gut, urging the frog to defecate," explains Sugiura.
For more information, check out the study published in Current Biology.
New research from the University of Granada found that stress could help determine sex.
Stress in the modern world is generally viewed as a hindrance to a healthy life.
Indeed, excess stress is associated with numerous problems, including cardiovascular disease, high blood pressure, insomnia, depression, obesity, and other conditions. While the physiological mechanisms associated with stress can be beneficial, as Kelly McGonigal points out in The Upside of Stress, the modern wellness industry is built on the foundation of stress relief.
The effects of stress on pregnant mothers is another longstanding area of research. For example, what potential negative effects do elevated levels of cortisol, epinephrine, and norepinephrine have on fetal development?
A new study, published in the Journal of Developmental Origins of Health and Disease, investigated a very specific aspect of stress on fetuses: does it affect sex? Their findings reveal that women with elevated stress are twice as likely to give birth to a girl.
For this research, the University of Granada scientists recorded the stress levels of 108 women before, during, and after conception. By testing cortisol concentration in their hair and subjecting the women to a variety of psychological tests, the researchers discovered that stress indeed influences sex. Specifically, stress made women twice as likely to deliver a baby girl.
The team points out that their research is consistent with other research that used saliva to show that stress resulted in a decreased likelihood of delivering a boy.
Maria Isabel Peralta RamírezPhoto courtesy of University of Granada
Lead author María Isabel Peralta Ramírez, a researcher at the UGR's Department of Personality, Evaluation and Psychological Treatment, says that prior research focused on stress levels leading up to and after birth. She was interested in stress's impact leading up to conception. She says:
"Specifically, our research group has shown in numerous publications how psychological stress in the mother generates a greater number of psychopathological symptoms during pregnancy: postpartum depression, a greater likelihood of assisted delivery, an increase in the time taken for lactation to commence (lactogenesis), or inferior neurodevelopment of the baby six months after birth."
While no conclusive evidence has been rendered, the research team believes that activation of the mother's endogenous stress system during conception sets the concentration of sex hormones that will be carried throughout development. As the team writes, "there is evidence that testosterone functions as a mechanism when determining the baby's sex, since the greater the prenatal stress levels, the higher the levels of female testosterone." Levels of paternal stress were not factored into this research.
Previous studies show that sperm carrying an X chromosome are better equipped to reach the egg under adverse conditions than sperm carrying the Y chromosome. Y fetuses also mature slowly and are more likely to produce complications than X fetuses. Peralta also noted that there might be more aborted male fetuses during times of early maternal stress, which would favor more girls being born under such circumstances.
In the future, Peralta and her team say an investigation into aborted fetuses should be undertaken. Right now, the research was limited to a small sample size that did not factor in a number of elements. Still, the team concludes, "the research presented here is pioneering to the extent that it links prenatal stress to the sex of newborns."
Stay in touch with Derek on Twitter and Facebook. His most recent book is "Hero's Dose: The Case For Psychedelics in Ritual and Therapy."
The world's 10 most affected countries are spending up to 59% of their GDP on the effects of violence.
- Conflict and violence cost the world more than $14 trillion a year.
- That's the equivalent of $5 a day for every person on the planet.
- Research shows that peace brings prosperity, lower inflation and more jobs.
- Just a 2% reduction in conflict would free up as much money as the global aid budget.
- Report urges governments to improve peacefulness, especially amid COVID-19.
What is the price of peace?
Or put another way, how much better off would we all be in a world where armed conflict was avoided?
To give some context, 689 million people - more than 9% of the world's population - live on less than $1.90 a day, according to World Bank figures, underscoring the potential impact peace-building activities could have.
Just over 10% of global GDP is being spent on containing, preventing and dealing with the consequences of violence. As well as the 1.4 million violent deaths each year, conflict holds back economic development, causes instability, widens inequality and erodes human capital.
Putting a price tag on peace and violence helps us see the disproportionately high amounts spent on creating and containing violent acts compared to what is spent on building resilient, productive, and peaceful societies.
—Steve Killelea, founder and executive chairman, Institute for Economics & Peace (IEP)
The cost of violence
In a report titled "The Economic Value of Peace 2021", the IEP says that for every death from violent conflict, 40 times as many people are injured. The world's 10 most affected countries are spending up to 59% of their GDP on the effects of violence.
Grounds for hope
But the picture is not all bleak. The economic impact of violence fell for the second year in a row in 2019, as parts of the world became more peaceful.
The global cost dropped by $64 billion between 2018 and 2019, even though it was still $1.2 trillion higher than in 2012.
In five regions of the world the costs increased in 2019. The biggest jump was in Central America and the Caribbean, where a rising homicide rate pushed the cost up 8.3%.
Syria, with its ongoing civil war, suffered the greatest economic impact with almost 60% of its GDP lost to conflict in 2019. That was followed by Afghanistan (50%) and South Sudan (46%).
The report makes a direct link between peace and prosperity. It says that, since 2000, countries that have become more peaceful have averaged higher GDP growth than those which have become more violent.
"This differential is significant and represents a GDP per capita that is 30% larger when compounded over a 20-year period," the report says adding that peaceful countries also have substantially lower inflation and unemployment.
"Small improvements in peace can have substantial economic benefits," it adds. "For example, a 2% reduction in the global impact of violence is roughly equivalent to all overseas development aid in 2019."
Equally, the total value of foreign direct investment globally only offsets 10% of the economic impact of violence. Authoritarian regimes lost on average 11% of GDP to the costs of violence while in democracies the cost was just 4% of GDP.
And the gap has widened over time, with democracies reducing the cost of violence by almost 16% since 2007 while in authoritarian countries it has risen by 27% over the same period.
The report uses 18 economic indicators to evaluate the cost of violence. The top three are military spending (which was $5.9 trillion globally in 2019), the cost of internal security which makes up over a third of the total at $4.9 trillion and homicide.
Peace brings prosperity
The formula also contains a multiplier effect because as peace increases, money spent containing violence can instead be used on more productive activities which drive growth and generate higher monetary and social returns.
"Substantial economic improvements are linked to improvements in peace," says the report. "Therefore, government policies should be directed to improving peacefulness, especially in a COVID-19 environment where economic activity has been subdued."
The IEP says what it terms "positive peace" is even more beneficial than "negative peace" which is simply the absence of violence or the fear of violence. Positive peace involves fostering the attitudes, institutions & structures that create and sustain peaceful societies.
The foundations of a positively peaceful society, it says, are: a well functioning government, sound business environment, acceptance of the rights of others, good relations with neighbours, free flow of information, high levels of human capital, low levels of corruption and equitable distribution of resources.
The World Economic Forum's report Mobilizing the Private Sector in Peace and Reconciliation urged companies large and small to recognise their potential to work for peace quoting the former Goldman Sachs chair, the late Peter Sutherland, who said: "Business thrives where society thrives."
The lush biodiversity of South America's rainforests is rooted in one of the most cataclysmic events that ever struck Earth.