Brother can you spare an employee? How Biden benefits are grinding the economic recovery to a halt

The New York Post:

SAVAGE PREDICTED THIS WOULD HAPPEN, OVER A YEAR AGO IN HIS CONVERSATION WITH SCOTT ATLAS (LISTEN HERE IF YOU HAVEN’T HEARD THAT PODCAST)

When it comes to free money, Americans may be getting too much of a good thing.

Under President Biden’s recently enacted $1.9 trillion American Rescue Plan, workers who lost their jobs to the pandemic shutdowns and scale-backs are now earning more in unemployment benefits than they did in wages. And that is stopping people from returning to work — just when employers are trying to reopen across the nation. 

The unemployed are getting an extra $300 a week in federal benefits through Labor Day. That’s on top of state unemployment benefits averaging about $320 per week.

It all adds up to an average of $638 per week in combined federal and state unemployment payments. In 2019, that combined amount averaged out to $348 per week.

The payout had been $938 in April 2020, when Trump passed a temporary plan during the height of the pandemic that boosted weekly unemployment payments by $600 and also gave employed people one-shot stimulus checks.

That ran out in July and the unemployment boost was cut down to $300-a-week which runs through Sept. 6. 

The unemployment payments work out to $15.95 an hour based on what would have been a 40-hour work week — more than double the federal minimum wage of $7.25 an hour. 

The government’s generosity came under scrutiny from economists, business owners and lawmakers Friday after the Bureau of Labor Statistics announced that the U.S. economy added just 266,000 jobs in April, well below estimates.

According to economists at Bank of America, the combined unemployment benefits mean that anyone earning less than $32,000 a year can potentially receive more income from unemployment aid than from their previous jobs.

“We should be clear about the policy failure at work here,” Sen. Ben Sasse (R-Neb.) said in a statement. “

More at The New York Post

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