|Unleash Prosperity Hotline
|We at CTUP are sick of the Washington-speak that the $1 trillion debt spending bill that has just been finalized, is a “stimulus” for the economy. Wall Street evidently buys into this nonsense as well.
CTUP senior fellow and University of Chicago economist Casey Mulligan finds that the $300 a week bonus unemployment benefits for the next three months will lead to roughly three million fewer Americans employed over this period. This is because with the new law roughly half of unemployed workers will make more money staying on the couch than going back on the job. By the way, there are 6.7 million job openings in America today, according to the latest Bureau of Labor Statistics report.
The advocates of the high unemployment benefits have been wrong all year. According to the study: “In May, CBO said that the unemployment rate would average 15.8 percent in Q3 (most of which was after the CARES Act $600 a week UI bonus expired), whereas in fact it averaged 8.8 percent. It projected that the unemployment rate would be 11.5 percent for the final quarter of 2020.” Instead, the unemployment rate fell rapidly over this period even with no additional stimulus spending.
Paying Americans not to work is a pretty dumb strategy to “stimulate” an economy.
Subscribe to receive our full hotline