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2020-07-02 Home Front: Politix

Chuck Schumer's plan to keep the economy in a welfare state coma

[Washington Examiner] Now the party of Rep. Alexandria Ocasio-Cortez and "the Squad," today’s Democratic Party isn’t exactly renowned for its economic literacy. But even by the Democrats’ low standards for economic policy, Senate Minority Leader Chuck Schumer’s latest proposal is a doozy.

Schumer’s new bill, co-sponsored by fellow Democrat Sen. Ron Wyden of Oregon, would extend the "supercharged" unemployment benefits provided under the $2.2 trillion CARES Act, currently set to expire on July 31, through March 2021 or until state unemployment rates fall below 5.5%.

"If we fail to renew the $600-per-week increase in [unemployment insurance], millions of American families will have their legs cut out from underneath them at the worst possible time — in the middle of a pandemic, when unemployment is higher than it's been since the Great Depression," Schumer said.

The idea here is straightforward enough: Democrats such as Schumer argue we shouldn’t get rid of expanded unemployment benefits until there is no longer widespread unemployment, or else people won’t have the resources they need to weather long periods without work. But Schumer’s short-sighted solution gets the problem entirely backward — the expansion of unemployment benefits itself is one of the biggest barriers to getting the unemployment rate back down to normal levels.

Here’s why.

The deeply misguided unemployment expansion was passed as a short-term measure at the height of the COVID-19 pandemic. It both expanded eligibility for unemployment benefits and augmented them with a federally funded additional $600 a week. Unfortunately, this made it more profitable to stay home on welfare than work for the majority of workers.

The economic ramifications of such skewed incentives are dire.

Posted by Besoeker 2020-07-02 00:19|| || Front Page|| [11130 views ] Top

#1 I posted yesterday that coinage is getting scarce. Today I learn in about two weeks cash or coin will not be used. Only cards because of the virus threat.

Posted by Dale 2020-07-02 00:40|| 2020-07-02 00:40|| Front Page Top

#2 'cuz government can track each and every purchase you make with a card. Isn't that just swell? Funny how with this COVID-19 "crisis" there was "suddenly" a push to go cashless, first in Europe, then by Stretch Pelosi, et al.

Posted by Clem 2020-07-02 00:45|| 2020-07-02 00:45|| Front Page Top

#3 Cashless won’t happen. Too many people have jars full of change lying about.

As for this bill, it’s merely more of the usual kabuki. The Senate Republicans will never pass it so long as they have control. Should the Democrats win, however...

Posted by trailing wife 2020-07-02 01:32|| 2020-07-02 01:32|| Front Page Top

#4 today’s Democratic Party isn’t exactly renowned for its economic literacy. But even by the Democrats’ low standards for economic policy, Senate Minority Leader Chuck Schumer’s latest proposal is a doozy.

He may not be literate in economics, but he's a star in voter psychology - since Trump will have to veto this bill.

Posted by g(r)omgoru 2020-07-02 05:41|| 2020-07-02 05:41|| Front Page Top

#5 Trump won't have to veto if the bill doesn't make it past the Senate.

But Trump, the Senate and the House are likely to agree on some sort of new Covid Stimulus bill. Perhaps another $1k or so per taxpayer.

Posted by lord garth 2020-07-02 11:23|| 2020-07-02 11:23|| Front Page Top

#6 After you insert your card into every promiscuous slot in town, it will be just as dirty as cash.

Posted by Abu Uluque 2020-07-02 13:31|| 2020-07-02 13:31|| Front Page Top

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