The $600/week unemployment booster is scheduled to end on July 31st or sooner. Most don’t know about the BIG PROBLEM with the $600/week federal booster and the surprising discrepancy across the country. In this video, we explore:
1. Important Research from a major non profit group
2. Shocking Discrepancy Nationwide
3. What to expect going forward
The American Action Forum (AAF), publishes research on economic, domestic, and fiscal policy issues. It combines timely analysis and modern communications strategies to promote innovative, free-market solutions to build a stronger, more prosperous future. It is an independent, non-political, non-profit located in Washington, DC.
The AAF did issue a disclaimer on their site that the research and analysis published by staff and experts reflect the views of the author and do not necessarily reflect the views of AAF.
According to research from the American Action Forum and the University of Chicago, the CARES Act created a $600 federal supplement to state unemployment insurance payments, which will expire on July 31st, but as states begin to reopen, this supplement will create a disincentive for people to return to work.
Nationally 63 percent of workers currently make more on unemployment with the federal supplement than they would working, but even if the federal supplement is reduced to $100 a week, 25 percent of the U.S. workforce could still make more on unemployment than returning to work.
Due to variations between states, changing the amount of the federal supplement will affect the incentives for some workers more than others, indicating that a uniform federal policy might not be the best approach.