The Gravy Train Has Stopped

When state economies hastily closed in mid-March amid the Coronavirus pandemic, Congress rushed to pass the $2.2 trillion CARES Act. The economic stimulus bill included $1,200 checks for many Americans, and an overly generous weekly $600 federal unemployment boost to the nearly 40 million Americans who found themselves out of a job.

For 6 out of 7 workers, the $600 federal unemployment benefit coupled with their state unemployment payout, left them in a better position than when they were working. As businesses began to reopen across the country, many employers struggled to bring back workers who were making significantly more money from unemployment.

As of July 31, the $600 benefit has expired, and officials have indicated that a compromise is not close to being reached. Democrats have sought to reinstitute the $600/week supplement until January of 2021, which will cost billions of dollars in taxpayer money and increase dependence on government redistribution of wealth. Republicans introduced a much more modest $200/week supplement in their proposal for a second stimulus package, but the package has been panned by Democrats.

Since the Democrats and Republicans introduced their proposed packages, a third unemployment proposal has surfaced, coming from Republican Senators Mitt Romney, Susan Collins, and Martha McSally. The newest attempt at a compromise offers federal unemployment benefits of $400 or $500 per week in addition to state benefits. In September, the benefits would move to a flat supplement of $400/week, and in October – December, recipients would receive 80% of their prior wages, or a maximum of $300/week.

This decreasing or “weaning off” approach to benefits seems to strike a middle ground that encourages the unemployed to get back to work, but Democrats are dragging their feet. Now, the House of Representatives is in their August recess, with the Senate to follow at the end of the week.

President Trump has been vocal about his support of additional stimulus money for the American people, signing a measure to provide an extra $400 in weekly unemployment benefits this past Saturday.

The mainstream media has been supportive of a renewal of the $600/week benefit, citing it as critical aid for families, especially for part-time, low-wage, and freelance workers. Despite the reluctance of the unemployed to return to work, the focus is on the “meager” unemployment benefits some states pay. Unemployment benefits vary by state and can range from $5 to $1,234.

It is only a small number of workers that receive a state’s minimum payment, typically those that barely earned enough wages over the past year to qualify for unemployment benefits. “Mixed earners” who make an income from more than one type of work will also earn lower benefits – but may still be earning from one or more jobs while collecting unemployment. The Pandemic Unemployment Assistance program had already extended the $600/week benefit to include self-employed, freelance, independent contractors, and gig workers that were previously not eligible for the benefits.

It is time for Americans to get back to work, and ending the over-reliance on government programs and taxpayer dollars is the first step in repairing the economy. If Democrats were willing to use common sense, a fifth round of aid could have been approved last week.

UP NEXT:

• Republican Senators to Introduce Coronavirus Stimulus Package, Including $1,200 Checks, on Monday
• On Unemployment, Pelosi Cares More About A Win
• Second Stimulus Talks Tied Up Over $600 Unemployment Bonus; Democrats Reject Trump Administration’s Short-Term Extension Offer