Some Fear Unemployment Benefits Keep People from Returning to Work

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Some Fear Unemployment Benefits Keep People from Returning to Work

With millions of Americans losing work as a result of the coronavirus epidemic, some elected officials and experts are worried that expanded unemployment benefits are making the jobless problem worse.

 

As part of the coronavirus aid package, the federal government has increased unemployment benefits by $600 a month. This has led to a situation where some workers make more money with these benefits than they do at their jobs. As Congress considers whether to extend this higher payment, some are worried that doing so will hamper an economic recovery. After all, these critics of the program say, why would someone return to work if he or she can make more money being unemployed?

 

It is unclear how many people are deciding not to return to work as a result of the higher unemployment benefits. Treasury Secretary Steve Mnuchin this week reminded people that they could lose their benefits if they refuse to go back to work if their company can re-hire them.

 

The increased unemployment benefits end this summer. Some Democrats in Congress want to extend this program through next year. Republicans argue that the government should not make it more attractive to remain without work than it is to go to work. They say that this will slow down an economic recovery and hurt business owners who need workers to return. Democrats counter that this program is desperately needed by people who are jobless through no fault of their own.


Democrats are pushing for quick passage of a new coronavirus aid bill that could include these extension of enhanced unemployment benefits. Republicans want a slower process.

 

Do you think that paying an extra $600 in unemployment benefits per week gives people an incentive not to return to work?

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