Backing that up, the Economic Policy Institute just released analysis indicating that reducing the payments to $200/week, one of the “compromises” Mitch McConnell is considering, would cost as much as 3.4 million jobs over the next year. They’ve estimated that if it goes away entirely, it would slow the growth of GDP by 3.7% over the next year, resulting in 5.1 million fewer jobs being created.
Daily Kos
July 27, 2020
The Economic Policy Institute estimates that eliminating the $600 addition could cost the economy over 5 million jobs.
Augusta Free Press
July 27, 2020
The $600 benefit has buffered the blows to the overall economy and individual households, according to a blog by Josh Bivens, the director of research at the nonprofit Economic Policy Institute. He said extending the $600 benefit through the middle of 2021 would boost the quarterly gross domestic product by an average of 3.7% and increase employment by 5.1 million workers.
If the $600 payments aren’t extended, jobs will be lost, Bivens said in an email. Income losses will result in lower demand for goods and services and cut the demand for workers, he added. Colorado would lose 66,898 jobs over the next year, according to the think tank’s estimates.
Denver Post
July 27, 2020
Expanded unemployment insurance has recently been shown to have added more than $800 billion to the economy, but the expansion is set to expire on July 31. According to the Economic Policy Institute, ending this expansion prematurely could cost the economy more than 5 million jobs.
Center for American Progress
July 27, 2020
According to a study published last year by the Economic Policy Institute, Massachusetts has the second highest childcare costs in the country, slightly better than Washington, D.C. The average monthly cost in the state was $1,743 for infant care and $1,258 for prekindergarten.
BU Today
July 27, 2020
As layoffs continue, some economists fear that reduced payments won’t be enough to help struggling Americans as more states halt re-openings and businesses shutter. In May and June, 7.5 million unemployed Americans went back to work, and roughly 70% of that group would have made more drawing unemployment, according to Heidi Shierholz, senior economist and director of policy for the left-leaning Economic Policy Institute.
“Concerns about the work disincentive simply ignore the realities of the labor market for working people, who will be very unlikely to turn down a job for a temporary boost in benefits, particularly when it is now clear that jobs are going to be scarce for a very long time,’’ Shierholz said in a blog post.
“Cutting off the $600 cannot incentivize people to get jobs that aren’t there.’’
Press Connects
July 27, 2020
Others argue that there are more unemployed workers than job openings, as senior economist Heidi Shierholz wrote in a blog post for the Economic Policy Institute, or that people aren’t returning to work because it’s not safe for them or their families.
“Cutting off the $600 cannot incentivize them to get jobs; it will just cause pain,” Shierholz wrote.
ABC News
July 27, 2020
A recent analysis from the Economic Policy Institute reported nearly 11 percent of the workforce is out of work with no real opportunity for return, and a recent Navigator poll estimates nearly 7 in 10 respondents want the Trump administration and Congress to expand the $600 weekly unemployment aid at least through January 2021.
Ms. Magazine
July 27, 2020
Business Insider
July 27, 2020
Economists have argued that the FPUC add-on is supporting the economy during the pandemic. Josh Bivens, director of research at the left-leaning Economic Policy Institute, argued that economic growth is constrained by the lack of demand and helping households spend rather than cut back will spur growth.
He estimated that continuing the $600 enhanced benefits until July 2021 will increase the gross domestic product by 3.7 percent and will add more than 5 million jobs. Nevada is projected to add 84,000 jobs and have the highest boost in GDP in the country at 7.5 percent.
Nevada Independent
July 27, 2020