Fed Report Justifies GOP Fears

Fed Report Justifies GOP Fears
  • The CARES Act extended unemployment benefits and boosted them.
  • More than 39 million Americans have lost their jobs during the COVID-19 crisis.
  • Republicans worry people will choose to stay home and collect unemployment.
  • Democrats want to extend the benefits to 2021.

(NewsReady.com) – According to recent statistics, more than 39 million people have filed for jobless benefits since the coronavirus began spreading in the US. In response to spiking unemployment, Congress passed the CARES Act to help.

Republicans supported the bill but feared many workers would decide they didn’t want to work anymore. It turns out they may have been right.

CARES Act Jobless Benefits

Traditionally, the amount of unemployment a person receives and who qualifies is left up to states. The CARES Act changed that a bit. Under the law, people could receive a benefits boost of $600. Also, contractors who work for the gig economy, like freelance writers, qualify for jobless benefits.

That meant people who received unemployment could get the maximum amount from the state and the $600 per week on top of that through July 31.

Democrats want to extend the boost until 2021 but Republicans and employers think it’s a bad idea. Right now, some workers are making more money than they ever have and they don’t have to do anything for it. They’re essentially sitting at home, watching Netflix and being paid more than they would by going to work.

How’s the economy going to reopen if people want to sit at home and collect assistance?

The Concern is Valid

On May 27, the Federal Reserve published it’s “Beige Book” report and they found many people don’t want to go back to work. According to the findings, companies have said they’re having a hard time “bringing employees back to work.” One of the reasons is because of “generous unemployment insurance benefits.”

Bonus to Return to Work?

To solve the problem, the White House and Congress are thinking about giving workers a “back to work” bonus. Economic adviser Larry Kudlow confirmed it’s a discussion. Employees could receive as much as $450 per week.

The future of the economy is unclear right now, but workers are definitely an integral part. Without them, everything stops — unemployment benefits can’t go on forever.

~Daily News for Busy People!

Copyright 2020, NewsReady.com

1 COMMENT

  1. Not true if u refuse work your unemployment insurance is cut off if e.ployer reports the name of said person who refuses to go to work he gets cut off how are we to go back to work when there are no jobs yet 39 million lost job s if their employers dont call them back then how are we to work yeah I’m making more at home but as soon as I can go to work I will so the truth is if your allowed to sit and collect unemployment and refuse work you must be in a city run by dems refuse work get cut off simple

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