Across the nation, Americans are desperate for a second stimulus check to help with financial strains caused by the coronavirus pandemic, Now, it has been reported that more than 30% of U.S. citizens need the federal $600 unemployment benefit, that had been provided by the CARES Act, in order to late through just one month. The Motley Fools' The Ascent did research on the unemployment benefit, polling almost 2,000 Americans who've faced some type of income loss since COVID-19 cases first spiked in March. The data revealed 28% of women and 20% of men have lost all their income due to the pandemic.
The CARES Act coronavirus stimulus relief bill provided an additional $600 in federal unemployment for those affected by the pandemic. This was on top of what was provided by the state benefits. That additional benefit is set to expire on July 31. In their newly proposed HEALS Act bill, Republican politicians want to decrease the federal benefits to $200 a week. This would only last until states are able to put a 70% wage replacement plan into place. That new plan would also need to be calculated to meet the specific needs of each individual recipient. Forbes notes that, with as much as unemployment offices are taking on current, this could be difficult to implement.
Massive cuts to current unemployment benefits would be catastrophic for the tens of millions of Americans who are now out of work.
This proposal from Senate Republicans is a nonstarter. https://t.co/ao5B0D16TP— Cory Booker (@CoryBooker) July 29, 2020
Many economic experts have offered their thoughts and opinions on the loss of the $600 unemployment benefit, with most saying that it could be detrimental to the nation's economy. "Emergency unemployment insurance is supporting the economy through this extraordinary pandemic and recession and putting a floor under what would otherwise have been an even worse situation," Ernie Tedeschi, an economist at Evercore ISI, told CNN. Tedeschi served as a senior adviser at the Treasury Department during the Obama administration.
"It's been a life preserver. Not only is it keeping afloat households, but it's also keeping afloat lots of businesses, Peter Ganong, an assistant public policy professor at the University of Chicago said. "If people are spending more, then it's creating jobs." At this time, there is no word on when the new stimulus bill may be officially decided on.