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Liz

Chuck Schumer’s Plan To Keep The Economy In A Welfare State Coma

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Liz

Washington Examiner

by Brad Polumbo

July 01, 2020 02:55 PM

Excerpt:

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.

The Heritage Foundation found that the CARES Act’s original unemployment expansion prompted 14 million additional workers to file for unemployment benefits and caused a $1.5 trillion drop in the size of the economy (not exactly what we needed in the middle of a recession!). Unsurprisingly, reports quickly spread of business owners who tried to hire their employees back but couldn’t get them to return to work because, thanks to this expansion, welfare paid more than their regular job.

Extending these lush unemployment benefits would only cause further economic dismay and prolong the current downturn. A report from the nonpartisan Congressional Budget Office that found extending benefits through January 2021 (Schumer’s bill extends them even longer) would cause serious economic harm.

*snip*

Full Story

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zurg

Obviously. This has been tried before, it’s called Europe, look it up. Geez. A certain large percentage of Americans are certifiably imbecilic. 

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Howsithangin

Only if the limpdik Repubs in the Senate allow it to happen

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Ticked@TinselTown

Chuck the Shmuck is an open enemy of the American people, period.

The more evidence he provides, the more we should do something about it and make sure that he pays for his treason.

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RedSoloCup

Crying Chuck needs put in a coma. Not like he's already in one....

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RedSoloCup
3 hours ago, Ticked@TinselTown said:

Chuck the Shmuck is an open enemy of the American people, period.

The more evidence he provides, the more we should do something about it and make sure that he pays for his treason.

:exactly:

And soon.

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Confessor

Once again, this proves that government is the source of most problems. Law of (Un) or Intended Consequences and all that. 

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