As early as 2009, Nancy Pelosi notoriously announced that the best way to revitalize the economy is to issue more and more food stamps and unemployment benefits . The more people who collect benefits, the better. At the time, the idea seemed ridiculous. Now, this kind of economic illiteracy seems to have become common sense.
This is a recent headline in The New York Times: "The end of the $600 unemployment bonus may bring millions of people over the edge."
This is the "news": "When March When thousands of Americans began to lose their jobs, the federal government stepped in a lifebuoy: additional unemployment benefits of $600 a week to allow workers to pay rent and buy groceries and buffer the economy.  Deteriorating again, if Congress does not take action to extend life, the life jacket will disappear within a few days. This may cause a wave of evictions, causing more economic harm to millions of Americans, and further damage to the economy.
These benefits are not "lifeguards" but job killers. A study by University of Chicago economist Casey Mulligan for the "Unleashing the Prosperity Commission" estimates that by the end of this year, The number of working Americans will be reduced by 10 million, thereby stifling any chance of a "V-shaped recovery."
Perhaps this is why Pelosi is so determined to retain the policy. This means that voters were unemployed when they participated in the polls in November. The rate is very high. How convenient for Pelosi and Joe Biden.
By the way, there are now 5 million vacancies in the United States today, close to the highest level in history. This is a strange dilemma. Even with about 25 million unemployed. Of Americans, employers also hang "help" signs on the windows.
This is the reason. According to data from the Congressional Budget Office, under the Pelosi policy, five-sixths of the unemployed receive non-work pay The salary is higher than returning to work. We estimate that even if the economy improves, most workers earning $30 or less can remain economically unemployed. Many workers can earn twice the unemployment income. If workers get a job Instead of accepting, they should lose their unemployment benefits. But workers know how to play the system. They may pretend to be sick, and the employer is unwilling to bring contagious workers back to the office or factory.
The employer now tells me to let the workers Back in the construction team, factory line, or restaurant, unless they get $100 or $200 in cash per shift, they will not be able to work so that they can still receive unemployment benefits. The Economist recently wrote, The additional unemployment benefits do more harm than good. Freedom groups march in the streets to try to pay for these six months.
This policy is what I have long called economic discrimination. Somehow, if I give it to me Children get up a week, mowing and hard-working children pay 40 hours a week's salary, and I give my other son more money to stay at home and play computer games. This strategy will result in more workload. In Moore’s family, I assure you that this will not.
Keeping people out of work is no way to expand economic output, increase employment opportunities and promote prosperity. According to this tortuous logic, we should start paying the unemployed $5,000 a week , And our recovery will indeed be jaw-dropping.
This is not only bad economics, it also includes many other aspects. It also violates the basic principles of fairness. Think of a building where 100 employees have been laid off. Company. A month later, they were all offered jobs, but only 50 people returned to work. Under the Pelosi plan, 50 people who worked hard earned less than the 50 people who stayed at home and watched TV.  The only way for politicians to "stimulate" the economy and reduce unemployment is to incentivize more economic life Produce. This is why it makes sense to reduce payroll taxes. We hope President Donald Trump, who supports this idea, will not give up. Starting on or around August 1, every worker (including nurses, technicians, sanitation workers, truck drivers, and home care service providers including economic heroes) will receive a 7.5% salary increase. The wage cost of each small business will be reduced by 7.5%%. Workers like to cut payroll taxes at a ratio of 2 to 1.
Skeptics complained that payroll tax cuts only help those who have jobs, not the unemployed. error. The best way to help the unemployed Nancy Pelosi is not to distribute food stamps and unemployment benefits. It is providing people with jobs, salaries and economic ladders. Liberals seem to have forgotten another thing: there is dignity and educational value at work, instead of having welfare checks paid by others.
More information: RealClearPolitics.com