General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe GOP could reduce federal unemployment benefits to $200 a week.
That would shed an estimated 3.4 million jobs from the economy.Republicans are proposing scaling back the $600 weekly federal boost to state unemployment benefits that Congress approved in March to an estimated $200 a week. But the move could shed 3.4 million jobs from the American economy, according to an estimate published Friday from the Economic Policy Institute, a left-leaning think-tank.
The analysis indicated that reducing the government supplement to state benefits would remove a pillar of support for 30 million Americans drawing unemployment checks, and likely compel cutbacks in spending propping up the economy.
It could also shave off 2.5% off GDP growth through next year.
"If we allow the $600 supplement to lapse, another huge constraint on growth will be imposed collapsing incomes for the tens of millions of U.S. families that had to rely on these benefits in recent months," Josh Bivens, the organization's director of research, wrote in a blog post.
https://www.msn.com/en-us/news/politics/the-gop-could-reduce-federal-unemployment-benefits-to-dollar200-a-week-that-would-shed-an-estimated-34-million-jobs-from-the-economy/ar-BB17brwy?li=BBnb7Kz
underpants
(182,803 posts)The economy needs money and doesnt care where it comes from.
Iliyah
(25,111 posts)and small businesses are laying off. Good job republicans.
Tink41
(537 posts)Proposed to replace 70% of income w 200 a week. My question, how do they know what you make?
My wage at 50 an hour isn't going to be 70% replaced with 200.00. Where does this magic out of the air number come from? So they think people who have lost their jobs only make 285.00 a week? Plus whatever their state benefit is? Who are these people?
EarthFirst
(2,900 posts)safeinOhio
(32,683 posts)is keeping the big ships afloat.
stopbush
(24,396 posts)The Rs are acting like this is 100% up to them, when it is the Ds who are in the drivers seat.
The House already passed their bill that includes the $600. The Rs are fractured. Any bill they produce will need D support to pass, and Ds are not going to roll over on this.
2naSalit
(86,622 posts)when it's our fucking money, they don't pay taxes so it doesn't and never did belong to them.
rickford66
(5,523 posts)Another possible reason to cut the extra benefit.
2naSalit
(86,622 posts)Cicada
(4,533 posts)Republicans have a logical point, unemployment benefits should not pay better than working. So why not continue the old program but cap payments to no more than full pay when laid off? Because state employment records dont reliably know what full pay is. The $600 amount was determined because it is the average amount needed to get unemployed on average up to full pay before the pandemic. For some its too much, for others it is too little. But to max the benefit on an individual basis to no more than full pay requires reprogramming state computerized records. That will take a long time, two months or more, and will likely have initial errors.
So at least initially, until state records are upgraded, we need to just pick a dollar amount. Repubs want $200. Dems want $600. I could live with $400 and a stimulus check every quarter until the economy hits a target for substantial recovery.