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End of unemployment benefits will cause millions to suffer

End of unemployment benefits will cause millions to suffer

End of unemployment benefits will cause millions to suffer
August 01
22:09 2020

Since the beginning of the coronavirus pandemic, we have seen how terrible our president has reacted to the crisis. Trump has repeatedly refused to believe that COVID-19 was real and did not react properly to help the people in this country. His administration continues to deny that COVID-19 is an actual threat to our country and continues to push an aggressive reopening plan in multiple states.

As the pandemic worsens, the governors are not responding quickly enough, but rather sluggishly. While their reaction to the pandemic is bad, they made sure to protect the economy. Since the virus, we have seen a huge spike of people who have lost their jobs and have filed for unemployment. This prompted the signing of the CARES Act.

In March, the government approved to give people who had filed for unemployment an extra $600 due to the pandemic. This small gesture helped the economy from fallout and kept many from worrying about how they were going to pay their bills. This helped to avoid far less misery than one might have expected from a crisis that temporarily eliminated 22 million jobs, and in some metrics, poverty actually declined.

The unemployment benefits have helped millions that were struggling while in lockdown. Without those extra funds rolling in, we would have seen a lot of people cutting back as well as missed rental payments and evictions all over the country. While the money was helpful for many families, it was not expected to last forever.

The $600 weekly supplement is set to expire July 31, which is this upcoming Friday. State unemployment benefit weeks normally end Saturday or Sunday. So the supplement will have already ended in most states. On July 25 or 26, workers will start to see a major drop in their wages this week. As time starts to get closer, we see no sense of urgency from the Trump administration about helping the people who will suffer from the lack of income.

It has been very apparent since the beginning that Trump and his administration have always lagged behind when coming up with a plan to help society. As the coronavirus positive rate continues to increase, we do not see him taking action to help slow down the curve. Taking this money away from families that rely on this to help feed their families as well as pay bills will have a major effect on the economy.

The current reasoning for ending unemployment is the idea that citizens should be out looking for new jobs to help the economy instead of relying on government assistance. How do they expect people to find jobs during a pandemic? If there are not many jobs available to take, then what else can they do besides sit in the house?

Even if people were to find jobs, they would probably not be paid the same amount before due to the lack of revenue being brought in because of the pandemic. While people fear the end is near, they have finally announced what they will do about the unemployment benefits.

Can we note that they waited until the week of July 31 for them to announce that they have made changes to the unemployment benefits? Imagine families worrying about how they would survive next month without that extra $600. Before they added the extra money, you were only getting a small percentage of what you normally would make at work.

Senate Republicans want to replace the extra $600 a week to only $200 a week. In most states that is a 43% cut in total benefits. Can someone explain to me how this will help anybody by cutting the cost? The extra $600 was working perfectly fine and we will not see a change in society until they can slow down the spread of COVID-19. If the spread continues to get worse would that take us back to another lockdown?

They are just trying to find ways to stay relevant and show people they have control over their funds. This extra $200 is only temporary until they come up with a suitable way to implement a 70% income replacement formula. The new plan will go through until September and in October, they will supposedly have a new formula.

If they put in this new formula, a lot of people would see a cut in benefits as well as cuts from their pay they would have received if they would still be working. A lot of people now rely on this extra $600 because it was more than what they were receiving before.

A 70% income replacement would give the average fast-food cook who is making $11 an hour about $316 in total unemployment benefits per week. That would be about a third of what the average American gets with the current policy. Do they honestly believe this will help the economy by giving people less money than what they were making before the pandemic?

If states cannot figure out the 70% formula before the October deadline, they can apply for a waiver from the Labor Department to continue paying the fixed $200 a week for up to two months. We can only imagine how many states are going to drag this process out due to them being understaffed and not caring.

The people in this country do not want to struggle or be forced out of their homes. What is not broken should not be forced to be fixed. They are forcing a change on something that was working perfectly fine. Help slow down the spread and then we can return back to work.

Featured Illustration: Austin Banzon

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Daija Bostic

Daija Bostic

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1 Comment

  1. JD
    JD August 03, 13:38

    “Since the beginning of the coronavirus pandemic, we have seen how terrible our president has reacted to the crisis. Trump has repeatedly refused to believe that COVID-19 was real and did not react properly to help the people in this country. His administration continues to deny that COVID-19 is an actual threat to our country and continues to push an aggressive reopening plan in multiple states.”

    You will fit right in with today’s media as none of the above is factual and rooted in opinion.

    Reply to this comment

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