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$600 per week
When Congress issued a $600 weekly unemployment stimulus in the spring, the response was rapid and intense.
The purpose of the infusion is to combine typical state benefits, and the purpose is to completely compensate for the wage loss of ordinary workers, which is nearly $1
But many workers, most of them low-paid workers, earn more when they are unemployed than when they work.
Many conservative lawmakers criticized the policy, which is not conducive to returning to work. They believe that this dynamic will prevent a rapid economic rebound.
Democrats believe that it must be enhanced. They said that when finding a job is challenging, millions of people rely on income support to pay bills and set the table, and they have reasons to keep people at home to prevent the spread of the coronavirus.
A large number of studies have found that the $600 allowance has no negative impact on the labor market. They found that, overall, this did not deter people from looking for work or cause them to leave. Companies have no difficulty in recruiting.
Ioana Marinescu, an assistant professor of economics at the University of Pennsylvania, said: “There are not enough jobs, and there are many unemployed.” “This is not a problem on a large scale.”
The tug of war reappears
The addendum expires in July. Democrats want to expand it, but Republicans oppose it.
Labor experts said that this time the parliamentarians did not seem to disagree with their objections, but the relief decree indicated that it was still in their minds.
Andrew Stettner, a senior researcher at the Advanced Think Tank Century Foundation, said: “The rest is the $600 issue.”[The legislation] Efforts are being made to give all countries a greater say in this issue. “
Marinescu said that given the improvement in the labor market after the crisis broke out, the $300 cash injection may now have a greater restraining effect. She said this is not a big problem because there is still a lack of jobs and the economy has not rebounded to the point where it might pose a threat.
She said: “Not only that, we also need stimulus measures.”
In addition, fewer workers will receive a $300 raise, which exceeds the full wage replacement, which is half of the subsidy level of the CARES Act, the same as the “wage loss subsidy program” formulated by President Donald Trump in the summer.
An analysis by Evercore’s economist and former Treasury official Ernie Tedeschi shows that the typical person will replace about 85% of the pre-layoff salary with an extra $300.