More than 26 million Americans have filed new claims for unemployment benefits in recent weeks, and a lot of them will now be bringing home much more money than they did while they were actually working. Needless to say, this is going to create a perverse incentive for people to stay unemployed for as long as possible. Just think about this for a moment. If you could earn more money sitting on your sofa gobbling down chips and watching Netflix, what possible motivation would you have to go back to work? Many low paid workers are going to want to ride this gravy train all the way to the end, and as you will see below, this is already causing big problems for businesses all across America.
So how did we get to this point?
Well, the Democrats pushed extremely hard to get a provision into the CARES Act that would give unemployed workers an additional $600 a week on top of any normal unemployment benefits. The following comes from USA Today…
The CARES Act includes a $600-a-week bonus until July 31 for those registered as unemployed. The $600 is issued in addition to the standard unemployment benefit, which varies by state and by individuals’ record of previous earnings.
This means that for the next several months, unemployed workers all over America will be bringing home at least the equivalent of $15 an hour based on a 40 hour work week, and some Republican members of Congress were very concerned about this…
Some Republican lawmakers warned about this unintended consequence of the relief bill when it was being drafted, noting that $600 a week amounts to $15 an hour, more than twice the federal minimum wage. That’s in addition to state unemployment benefits, which vary widely, from a maximum of $235 per week in Mississippi to $795 per week in Massachusetts.
Despite those concerns, the CARES Act easily sailed through both chambers of Congress, and now we are stuck with it.
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Maybe...if the money ever arrives. My family member who lost his job due to CV-19 is still waiting for his Bank of America card to arrive. Can’t understand why it is done that way and wonder what the quid pro quo is. This is a 2-parent young family with 2 small children and both parents are out of work. Very difficult. Helping out as best we can and all staying positive.
ReplyDeleteDon't Jinx them !! Govt can't wait to put all back to work & cut off the money
ReplyDeleteThe lower wage scale workers get major raises, increase in food stamps and weeks off. While those on the front line risk their lives for their same salary. Am I the only one that thinks that is totally F'd up???
ReplyDeleteDemocrats doing everything they can to destroy small businesses,I hear that BS all the time that the min wage is 15 an hr when it’s not.
ReplyDeleteIt sailed through both Chambers of Congress. WTH are these people thinking. That's exactly what I thought when I first heard of it.
ReplyDeleteMany "essential" employees don't bring home $600/wk. What a smack in the face. They should be getting the $600/wk. Not the ones sitting homehome collecting unemployment.
ReplyDeleteWait until tax time, all that unemployment compensation will be taxed. People should save at least 15% for tax time.
DeleteMany "essential" employees don't bring home $600/wk. What a smack in the face. They should be getting the $600/wk. Not the ones sitting homehome collecting unemployment.
ReplyDeleteKnow of a location in DE an employee called in the state police with a complaint so they'd shut the plant down and he could collect. Yeah that didnt happen. My company has cut salaried employees to 24 hours and hourly to 32. Have had one of our people ask for a furlough so they could make more than their assigned reduced hours. I have been cut to 24 hours a week and make too much to get unemployment. I would rather be working anyway. Mr. I Want To Be Furloughed will probably not be brought back. Idiot.
ReplyDeleteSocialism, working person supporting people not working. The sad thing is the person not working is getting more money than the working person. The money will run out.
ReplyDeleteI've been waiting for this to come up.
ReplyDeleteMy neighbor's boyfriend worked at a local restaurant. He made $13.20 per hour when they had to close.
His weekly unemployment check was $307.00. Add to that the $600.00, and suddenly he's making almost $23.00 per hour! For doing NOTHING!
He's a hard worker and was extremely upset when he was first laid off. He wanted to work, but now he's hoping they NEVER reopen!
You really can't blame him. He went from taking home around $430.00 per week to $907.00 per week - most of it tax free. He'd be crazy if he wanted to go back to work now!
In the meantime, he's taken some odd jobs around his neighborhood, and getting paid in cash. He's 22 years old and now making the most money he ever has in his life.
Local businesses are going to have a very difficult time getting their old help back, that's for sure. At least until July 31st when this gravy train runs out.
Most us not tax free
DeleteALOT more are making 00000000 money !!! Starving & Bankrupt !!!
ReplyDeleteOver 50,000 DIED in America , so the govt saved alot of $$$ on benefits !!!
ReplyDeleteLet the people with NO Unemployment for over a month now tell you how
ReplyDeleteMUCH $$$$$ they have !!!! They have been issued NOTHING !!!
Millions can't even get online or phone to File , get a card etc !!!
If they ever get on, then more weeks & months before ANY $$$$ !!!!!
MD system just CRASHED for the whole day Sunday 4-26-2020 !!!
Can't File the WEBCERTS for the Week !!! Need MORE SERVERS MD !!!
Alot of BIG Business & Colleges & (WHO KNOWS WHO ELSE ) are getting
ReplyDelete$$$$$$ in the MIllions , who are NOT entitled to it , because it is OURS !!!!
While we sit & wait foe months for $$$$ that has still NOT came yet !!!
If we ever got a PENNY too much they would lock us up !!! & want it back !!
Would you work if you could sit home and eat bon-bons and watch soaps and make more money? Not me!
ReplyDeleteMillions DESERVE more money than they did working !!! Get all you can
ReplyDeletewhile it last, because you will be paying it all back later & then some !!!!