More Victims of the Lockdown

The economic devastation from the lockdown continues to create more victims. The Federal Reserve Bank of Philadelphia estimates that by the end of the year, 1.34 million renter households will owe a combined $7.2 billion in back rent, or an average of $5,400 per household.

Because of the moratorium on evictions imposed by the Centers for Disease Control and Prevention, landlords have no remedy for tenants who aren’t paying their rent. Assuming that the moratorium isn’t extended, landlords can’t begin evicting non-paying tenants until January. And in many jurisdictions, the eviction process can easily take months.

This means that many landlords aren’t receiving rent payments now and have no idea when that situation will change. Yet, they must continue to pay the mortgage, insurance, and property taxes, as well as maintain their property.

Certainly, it is tragic when someone loses their job because of the lockdown. But that tragedy isn’t mitigated by creating more victims.

This is a classic example of government creating new problems with its misguided efforts to solve other problems. The government responded to the pandemic by forcing business to close. The result was an economic tsunami that destroyed everything in its path. And when the water receded and new victims were discovered, the government rushed in with a moratorium on evictions, which will create more victims.

The government’s response to the pandemic has been a disaster. Not only has it failed to contain the virus, it is destroying the lives of millions of Americans. The lockdown has created far more victims than COVID-19.