ABSTRACT

Impact of Additional Unemployment Insurance Benefits on Employment and Economic Recovery: How the $600-per-Week Bonus Could Backfire   [open pdf - 340KB]

From the Key Takeaways: "[1] Much of the CARES Act [Coronavirus Aid, Relief, and Economic Security Act] attempts to keep workers connected to employers during the crisis--but the $600 unemployment bonus is incentivizing job losses. [2] The extra $600 per-week benefit could increase unemployment by 13.9 million, and reduce GDP by up to $1.49 trillion. [3] To help Americans stay employed, and to mitigate the economic downturn, lawmakers should cap unemployment benefits at no more than 100 percent of wages."

Report Number:
Backgrounder No. 3490
Author:
Publisher:
Date:
2020-04-29
Series:
Copyright:
Heritage Foundation. Posted here with permission. Documents are for personal use only and not for commercial profit.
Retrieved From:
Heritage Foundation: https://www.heritage.org/
Format:
pdf
Media Type:
application/pdf
URL:
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