Posted on 05/07/2021 5:38:46 PM PDT by rickmichaels
People who lost their jobs in the pandemic are now earning more in benefits than they did in wages, creating a nightmare economic situation that is stopping people from returning to work and in turn, driving up inflation.
In March 2019, the average weekly payment to an unemployed person was $348 when combining federal and state unemployment payments.
That nearly tripled to $938 in April 2020, when Trump passed COBRA - a temporary economic plan that boosted weekly unemployment payments by $600 and also gave employed people one-off stimulus checks. COBRA expired in July and the unemployment boost was halved to $300-a-week. Now, they are $638-a-week on average and they'll stay that way until September 6 at least.
It means, someone who was working 40 hours a week before the pandemic now gets nearly $16-an-hour to do nothing at home, which is more than double the federal minimum wage of $7.25.
Bank of America estimates that anyone who earned $32,000 before the pandemic can now get more from a combination of state and federal unemployment benefits. They are also allowed to claim benefits for up to 39 weeks - nearly a full year - whereas before, it was capped at 26 weeks. The average US salary in 2019 was $31,133.
It has created a scenario where restaurant workers, cleaners, retail workers and other people who slogged for minimum wage are simply choosing to stay at home because they earn more and are not put at risk of catching the virus.
Now, the only way for businesses to make up for it is by raising their prices - and Republicans are up in arms about the fast-paced inflation it is causing.
(Excerpt) Read more at dailymail.co.uk ...
Explains the dismal April jobs report.
When our founding fathers wrote of “life, liberty, and the pursuit of happiness,” they did not have sitting around with hand-held self-gratification screens in mind. We should not underestimate the desire of many to be enslaved.
Made enough money on unemployment to get by.
It is way more satisfying to earn it.
I’m not sure that’s exactly right. But close. The new Pandemic Relief fund which spent $1.9 trillion, 91% of which went to interests with lobbying power, cut the federal taxpayer benefit from $600 a week to $300 a week. I am really shocked more leftists aren’t outraged by that.
So, depending on the state, maybe $100-$300 a week in unemployment, plus $300 from feds, barely adds up to $30,000 a year. Of course I am not factoring taxes. But $30,000 a year for doing nothing beats $36,000 to bust your but for some jerk 40 hours a week I’ll give you that.
Isn’t 32k per year about 15 dollars per hour? The new de facto minimum wage, because of this price support.
Stupidest thing I did was start a business and work for myself. I’m going to do everything I can to get on the dole now. $32,000 per year is higher than my budgeted retirement goals. Working is for chumps.
Don’t be deceived.
It is those of us who are working that are being enslaved.
Those that sit at home doing nothing while being provided for by the government reap the benefits of our enslavement.
Speaking as a slave, I can say no one wants to be enslaved.
My sense is they are not taking more from you, but printing bucks out of the blue. They have to go somewhere. They don’t disappear when spent.
Again, the siren call of conservatives has been, “man yearns for freedom.” Based on recent observations I’m not sure that’s true.
Every dollar created out of the blue is an invisible tax on anyone who holds or earns dollars.
This is the beauty of the concept of the Petro-dollar and why the US defends the practice with extreme violence when it is challenged.
The Petro-dollar permits the US government to tax the entire world by creating dollars out of whole-cloth. Thus is US inflation shared with the entire world.
When, eventually the Petro-dollar ends and all of the US dollars held as hard currency overseas comes flooding back to the our shores inflation in triple digits or greater will be realized.
I do not think it is that simple. We’ll see.
Bkmk
I’ve NEVER been on welfare. I wouldn’t even know how to go about it. Heck! Maybe I’m just missing out. All I ever did is work and pay taxes. Don’t I feel like the “sucker”!
Meanwhile people working at nursing homes are “essential” so they get to continue working for the same old $10/hr.
Biden open jobs for illegals those who didn’t return find out gravy train derailed S.O.L. ensues cars become the new RV’s.
Obama act 2
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.