May 02, 2020

Dems sneak huge increase in unemployment into the must-pass recovery bill

In the rush to get money to jobless people, congress churned out a $2 trillion spending bill called the CARES Act.  And in the rush to get that out, Democrats managed to slip in a bomb:

Buried deep in the bill--now a law--is a huge increase in federal unemployment benefits.

But hey, how could anyone object to a huge increase in unemployment bennies, eh?  All low-income voters will both support it and vote for the Dems who slipped it in.

Wait...why will low-income voters cheer?  Cuz if I understand it, only unemployed people get...um...unemployment benefits, eh?

They'll cheer because the huge increase now makes it more attractive to stay unemployed than to work, if a job pays less than $15 per hour.

Yep, the much higher unemployment checks mean people will make more on unemployment than in a job paying less than $15 per hour.

Wow, how cool is that, eh?  Dems have been pushing for a higher federally-mandated minimum wage for years but couldn't get it passed because every economist knew it would and did kill jobs.  So now they've accomplished the same thing by a different route.

The Wall Street Journal did the math: “The $600 payment aligns with working full time at $15 an hour.  Half of all full-time employees earn less than $957 per week, but with the bomb slipped in by the Dems, unemployment benefits will average $978 per week.

It doesn't take a PhD to predict the result:  By giving people more money NOT to take a job, Democrats have made it harder for companies to hire people for less than $15 per hour.

Many analysts have noted that every dollar increase in the minimum legal hourly wage causes employers to figure out how to get by with fewer employees.  Of course Democrats don't believe that, just as they don't believe in the laws of supply and demand.  Or indeed, in any economic theory other than their one core belief:
"We're congress, so we'll tell you peons exactly what you can and can't do, down to the color of your shoelaces."

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