Thursday, April 22, 2021

High unemployment benefits and fickle government policies are stalling the recovery

Nor is the problem inexplicable, despite what might seem a puzzling persistence of double-digit unemployment in the restaurant industry.

On the federal level, the culprit is clearly expanded unemployment benefits.

Back in 2020, the nonpartisan Congressional Budget Office warned that by extending the emergency increase in unemployment benefits, Congress was risking having five of every six recipients earn more on unemployment than they could from work.

Given the capricious whims of governments gone tyrannical, unemployment benefits are a far more stable option than a job waiting tables.

Because workers collecting unemployment must usually at least go through the motions of finding work, the unemployment rate in some of these industries remains bafflingly high.

Conservatives have long warned that excessive unemployment benefits present a perverse incentive to lower-skilled workers.

"I think the $300 a week supplement for unemployment insurance, relaxed eligibility for unemployment insurance, and 100% federal subsidy for COBRA is going to hinder the labor market recovery at some point if it has not already," Furman recently told the Dispatch.

https://www.washingtonexaminer.com/opinion/editorials/high-unemployment-benefits-and-fickle-government-policies-are-stalling-the-recovery 

No comments: