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Mon Jun 7, 2021, 02:54 PM

Cutting unemployment benefits early hurts workers and state economies

The decision by Republican governors in 25 states - including Maryland last week - to pull out of federal unemployment insurance (UI) support in their states is dangerously shortsighted. The most recent data show that the economy is improving but still far from healthy. Cutting back aid for jobless workers now, while suitable jobs are still not available for many of them, is not just cruel - it is damaging to these states' long-term economic health.

A robust unemployment insurance system serves three main purposes. The first is straightforward - providing a financial cushion to workers who lose their job through no fault of their own, so that they can still pay the bills and keep food on the table while they search for new employment. Aside from being the humane thing to do, providing this safety net is also economically prudent. No state economy benefits from workers and families falling behind on mortgages or auto loans, being evicted, having cars and homes repossessed, cutting back on food, or delaying or opting out of needed health care. Yet, these outcomes will become more likely in the states cutting aid for the jobless.

The states cutting UI are also undermining the program's second goal: to speed recovery by bolstering consumer demand. Unemployment insurance is one of the most powerful economic stimulus measures in a downturn. Unemployed workers tend to quickly spend every dollar they receive, helping businesses by keeping customers coming through the door. Notably, the UI programs that these states are ending are entirely federally funded - meaning they are dollars going into state economies straight from federal coffers. By ending these programs, governors are taking those dollars out of potential spending at businesses in their states.

Lastly, an adequate UI system gives jobless workers time to find suitable work, not just any job that's available. The long-term health of any economy relies upon making the best use of the available workforce, and that means making sure that people can find jobs that are appropriate for their skills and circumstances. Having highly trained teachers, construction workers, machinists or transit operators taking jobs in restaurants, retail or package delivery - if those are the jobs available - is a waste of those workers' investment in their craft and likely involves a pay cut. It also takes opportunities away from other jobseekers who might have been better suited for those roles - both of which represent a drag on workers' long-run earnings and the state's productive potential. And if skills-mismatched workers ultimately leave positions when something more appropriate for them becomes available, that's wasted recruitment and training expenses for employers.

https://www.msn.com/en-us/news/politics/cutting-unemployment-benefits-early-hurts-workers-and-state-economies/ar-AAKNrEg

They don't care. They'd cut off a limb if they thought it would spite the liberals.

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Reply Cutting unemployment benefits early hurts workers and state economies (Original post)
Yo_Mama_Been_Loggin Jun 7 OP
onecaliberal Jun 7 #1
ShazamIam Jun 7 #2
FoxNewsSucks Jun 7 #3
ShazamIam Jun 7 #4
MichMan Jun 7 #5

Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 03:08 PM

1. That is precisely what they want so they can blame President Biden.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 03:32 PM

2. And suddenly while employers are demanding workers, they stopped all talk of increased pay. (Yes a

few exceptions, McDonalds/Amazon.)

Remember way back in 2017 when they promised a wage increase in exchange for the fat tax cut.

None of the Republicans opposing the 15% income tax on business and corporations are not
talking about increasing the pay.

Current working class jobs pay is not sufficient to live on, not sufficient for child care, health care, transportation or even rent.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 03:52 PM

3. I wonder if there's a loophole

which lets them keep the unpaid money in the state fund, so they can use it instead of taxing corporations or billionaires.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 05:07 PM

4. The red state economies depend on workers being paid to little to live on.

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Response to Yo_Mama_Been_Loggin (Original post)

Mon Jun 7, 2021, 06:54 PM

5. This would a good opportunity for blue states to add an extra $300 in state UI

To show how a responsible state takes care of its residents

Regular state unemployment plus $300 Federal plus an additional extra $300 from the state.

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