In Less Than 14 Days, The Government Will Sever Its $600 Per Week Unemployment Lifeline

Zero Hedge:

Even scarier than the pandemic for some in this country is the idea that they may have to actually get up off the couch, look for employment once again and earn money the old fashioned way: doing something productive.

It’s now less than 14 days until Americans surviving on $600 per week in extra unemployment benefits could see their “lifelines” come to an end. The program, which was designed to increase unemployment during the pandemic, has accounted for a majority of the Treasury’s $100 million in jobless payments last month and is scheduled to end before August, according to Bloomberg.

At the same time these benefits end, the Fed will continue to pump billions, if not trillions, into capital markets, facilitating an even further spread between the “haves” and the “have nots” in the country. For many Americans, it also means that they may have to dive into the meager savings they have. 

Stimulus talks in Washington seem to be stalled at the moment and until they progress, there will be no extension of the benefits. Democrats are calling to extend the program (surprise) and the Trump administration is battling to try and cap the amount that Americans can receive, rightfully claiming that the extra unemployment is a disincentive to return to work.

Employers are also standing with the Trump administration, arguing the obvious: the bump in unemployment has disenfranchised potential workers from going back to the job market. Despite this, job postings are lower by about 23% than they were in 2019.

One 63 year old former maintenance supervisor interviewed by Bloomberg called the extra $600 per week “a lifeline to our pre-pandemic existence.”

“It’s going to put me in an extremely uncomfortable and possibly threatening situation with my housing,” he said about the program potentially ending.

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