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FX.co ★ US unemployment insurance benefit poses threats to country’s economy

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Forex-Humor:::2020-07-22T14:27:24

US unemployment insurance benefit poses threats to country’s economy

The US authorities still doubt whether to cancel or not the federal unemployment insurance benefit that was introduced to support people’s welfare during the quarantine period. The fact is that the US pays the largest compensation in the world and most citizens have decided to give up their jobs forever.

Since the beginning of the lockdown, the White House has been paying $600 a week to everyone who has lost a job.

Besides, people benefit from other types of aid depending on the state they live in. As a result, they have enough money and a lot of free time. That is why most experts suppose that US citizens have no reason to return to work.

“If you are making $50,000 a year, it is more advantageous to be on unemployment insurance than it is to go back to work,” Senator Rob Portman said.

In fact, most Americans prefer getting over $4,000 (290,000 Russian rubles) as federal benefits to going back to offices and factories. This may seriously affect the US economy.

However, on the other hand, if the government repeals the insurance payments, demand may tumble thus deteriorating the already alarming economic condition. Senators are still discussing the issue. Some of them have proposed to reward people who return to work with a weekly benefit of $450.

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