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$600 Unemployment Benefits Set to Expire: What that Means for Your Wallet and the Economy

The CARES Act added $600 a week to the unemployment benefits. That extra money is set to expire at the end of next month if lawmakers fail to act.  In this video we are going to talk about what that would do to the economy and your wallet

Since the $2 trillion CARES ACT passed in March, Americans who lost their jobs have been able to collect an additional $600 a week in unemployment benefits in addition to what the individual states have been paying.

Thanks to May’s unexpectedly decent jobs report, Republicans are feeling less pressure to renew the $600-per-week federal unemployment benefits that have been keeping many families afloat through the pandemic.

I wouldn’t really consider adding 2.5 million jobs to the workforce a victory when nearly 40 million people lost their jobs. That’s only a gain of 6% of what was lost.  That’s still nearly 38 million people still out of work.

There are so many people out there right now that are hurting, trying to make ends meet, and are in need of additional assistance to sustain the basics.  And republicans are still taking a “wait and see” approach which I go into more detail in this video right here.

You have lawmakers that are saying to let the additional unemployment benefits expire because you have people who are not inclined to go back to work or find a job because they are making more on unemployment than going back to work. I get it! 

You do have millions of people who are out of work that would like to get back to work, but you have many companies that are closing, filing for bankruptcy, and down and cutting their staff.  So the jobs are not out there, and when a company is hiring the competition is so high and full of people who were executives competing for minimum wage jobs.

Saving lives shouldn’t be a political issue.  The pandemic is real, at the time of this recording nearly 125,000 Americans have lost their lives and to be honest many people are not comfortable to go back to work due to having just lost a parent, a friend, or a loved one to this virus.

Given that approximately 10% to 15% of U.S. GDP is driven by consumption, allowing those benefits to expire will strip more than 20 million Americans of a total of nearly $842 billion to spend.

Josh Bivens, director of research at the Economic Policy Institute predicts that “Keeping the supplemental $600 in place through the middle of next year “would provide an average quarterly boost to GDP of 3.7% and employment of 5.1 million workers,”.

That’s largely because Americans would have more money to spend which would in turn prevent retailers from closing their doors and layoffing more workers