Issues & Insights posted an article today about the impact of one item that was included in the CARES Act.
The article reports:
Buried in a story about the overly generous unemployment “bonus” that Democrats added to the CARES Act is the reason why they insisted on it in the first place — and why it will drag down the recovery once the lockdown ends.
While lawmakers were hammering out the massive $2 trillion bill, a key focus of which was to keep workers connected to their jobs through a loan guarantee program — Democrats insisted on a huge increase in unemployment benefits.
The result was a $600 a week bonus. New York Sen. Chuck Schumer was right to call this “unemployment on steroids.”
Well, guess what?
“The $600 payment aligns with working full time at $15 an hour – the minimum-wage level many Democrats in Congress support,” notes the Wall Street Journal.
The Journal reports that – thanks to this bonus – workers will get an average of $978 in unemployment benefits. What’s more, “Labor Department statistics show half of full-time workers earned $957 or less each week in the first quarter of 2020.”
South Carolina Sen. Lindsey Graham had it exactly right when he said that: “You’re literally incentivizing taking people out of the workforce at a time when we need critical infrastructure supplied with workers. If this is not a drafting error, then it’s the worst idea I’ve seen in a long time.”
The article includes comments from an employee who states that she will not go back to work unless she gets a raise–she likes unemployment at $15 an hour.
The thing to remember here is that the Democrats are all about the November election. If they can manage to pass bills that include things that will prevent the economy from returning to a growth mode after the coronavirus is past, they believe they can win the election. President Trump’s strong point has been his handling of the economy. If the democrats can destroy the economy, they have a better change of getting elected. There is no concern here for the well being of the American people–the Democrats simply want to be back in power. That is not a good thing for America.