Sunday, August 2, 2020

Paying people not to work is not an economic stimulus

A study for the Committee to Unleash Prosperity by University of Chicago economist Casey Mulligan estimated 10 million fewer people working by the end of the year, thus killing any chance of a "V-shaped recovery."

Under the Pelosi policy, 4 out of 5 unemployed workers are getting paid more not to work instead of returning to a job, according to the Congressional Budget Office.

Employers are now telling me that to get workers back on a construction crew, factory line, or restaurant worker, they won't work unless they get a paid cash amount of $100 or $200 a shift, so they can still collect the unemployment benefits.

Magically, if I pay my child who gets up and mows, lawns, and works hard 40 hours a week and I pay my other son even more money for staying home and playing computer games, this strategy is going to lead to more work effort in the Moore household.

Paying people not to work is no way to expand economic output, more jobs, and more prosperity.

They are all offered their jobs back a month later, but only 50 come back to work.

Under the Pelosi scheme, the 50 who work hard get less money than those who stay home and watch TV. The suckers here are the ones who return to the job.

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