Economists warn scaled-back unemployment benefits would knee-cap recovery – By Niv Elis (The Hill) / July 21 2020
Economists are warning Congress that scrapping or substantially reducing unemployment benefits will pull the rug out from the economic recovery.
Expanded unemployment is front and center as the Democratic-controlled House and Republican-controlled Senate embark on negotiations for the next COVID-19 relief package.
Republicans argue the $600 in additional weekly unemployment benefits has created warped incentives by paying many people more than they previously earned at work. Democrats counter that the benefits, set to expire on July 31, are crucial at a time of historic unemployment.
“Already we’re worried that the economy is starting to weaken, and that’s before thinking about the government pulling back stimulus,” said Beth Ann Bovino, U.S. chief economist at S&P Global. “If the government starts to pull back some of the measures that were in place, those positive numbers that we saw, say goodbye to them.”
Continue to article: https://thehill.com/policy/finance/508234-economists-warn-scaled-back-unemployment-benefits-would-knee-cap-recovery
