As Congress continues to debate new pandemic relief, a new analysis from the Economic Policy Institute finds extending and reinstating enhanced jobless benefits through 2021, in addition to getting the virus under control, could save or create 5.1 million jobs; boost GDP by 3.5%; and increase total personal income by more than $440 billion.
Reuters
December 4, 2020
The FPUC program expired on July 31, 2020. It provided eligible individuals with $600 per week on top of the weekly benefit amount they received from certain other UC programs, more than doubling what many Pennsylvanians would have received in traditional unemployment benefits alone. Economists believe that the U.S. economy weathered the coronavirus spikes in spring 2020 as well as it did in large part because of the additional income this program supplied to unemployed individuals and their families. We know that these dollars flow directly back into the economy. People used FPUC benefits to pay their rent or mortgage, to buy their groceries, and to continue discretionary consumer spending which helped support our fragile economy. The Congressional Budget Office estimates that renewing FPUC would drive the unemployment rate lower throughout 2021. On the other hand, the Economic Policy Institute estimated that ending FPUC has resulted in the loss of millions of jobs that would have otherwise been preserved by the boost in spending that FPUC provided. FPUC payments have added $16,113,457,128 to Pennsylvania’s economy between May 7, 2020, and December 1, 2020. Pennsylvanians have been struggling since FPUC expired on July 31, 2020.
Governor Tom Wolf
December 4, 2020
However, the above argument against the increase misses some important counterpoints. The purchasing power of the minimum wage is 17% less than it was in 2009 (Economic Policy Institute, June 17, 2019). In addition, the wage has not been adjusted to the increase in productivity and/or technical change over a period of time. The resulting increase in demand for labor due to productivity gains would absorb the increase in the number of workers attracted by higher wage, hence no unemployment. In addition, labor economists have argued that when workers are paid a wage rate that they deem to be fair, they are more loyal to their employers (thus decreasing turnover cost), work hard and increase productivity. Thus, the increase in productivity, labor force participation and increases in consumption expenditures would increase economic growth.
Standard Examiner
December 4, 2020
The US Department of Health and Human Services defines “affordable” child care as costing no more than 7 percent of a family’s income. In Massachusetts, according to the Economic Policy Institute, day care for a 4-year-old costs on average $15,095 a year, which is 16 percent of median income even in this high-wage state. And it’s certainly not the (overwhelmingly female) workers who are getting rich on this expensive service; the median wage for a child-care worker in Massachusetts is $27,680. Despite the many political paeans to the sanctity of the family, society still sees child care as a private responsibility, not a public good.
Boston Globe
December 4, 2020
Bernstein started working as a senior official at the EPI (Economic Policy Institute) in 1992. From 1995 to 1996, he served in the United States Department of Labor as the deputy chief economist. Then, he returned to EPI as a senior economist and the director of the Living Standards Program until he was selected by Biden.
Market Realist
December 4, 2020
Among the top 30 H-1B employers are major U.S. firms including Amazon, Microsoft, Walmart, Alphabet’s Google, Apple, and Facebook, according to a report by the Economic Policy Institute (EPI) in May.
Reuters
December 4, 2020
Valerie Wilson, del Economic Policy Institute, dijo en un comunicado que el impacto financiero desproporcionado de la pandemia en las comunidades de color refleja, y empeora, las disparidades raciales existentes en el país.
Reporte Hispano
December 4, 2020
“Senate Republicans allowed the across-the-board $600 [federal] increase in weekly unemployment insurance benefits to expire at the end of July, so last week was the 18th week of unemployment in this pandemic for which recipients did not get the extra $600,” Economic Policy Institute Policy Director Heidi Shierholz said.
People’s World
December 4, 2020
A U.S. worker who is paid $400,000 falls just below the threshold of the top 1%, according to figures from the Economic Policy Institute.
Common Dreams
December 4, 2020