There have been many proposed stimulus plans that have been discussed over the past few weeks. Some of these packages are just too extreme and don’t get any meaningful consideration by parties on the opposing side of the aisle.
But when a proposal does get a level of interest from somewhere like the White House, it’s worth noting because that type of proposal could have real potential.
There’s been a new proposal that would offer workers $450 a week on top of their wages were they to return to work. This payment would be offered until the end of July which is also when the enhanced unemployment benefits that offer $600 per week will expire.
This new proposal is motivated in part because of the current incentives that exist for people to not return to work.
According to an analysis from economists at the University of Chicago, nearly 70% of workers who are receiving enhanced unemployment benefits could actually be receiving more income than they were from their paychecks.
Basically, if you were making $50,000 a year it is more advantageous for you to be on unemployment insurance right now than to go back to work.
And hey, I’m not blaming some individuals for not wanting to get back to work. If the system is set up that way, the system is to blame — not the people relying on the system, in my opinion.
But this $450 a week proposal has received interest from the White House and Democrats might even be interested in supporting it.
“We’ve got to reward individuals for coming back to work,” National Economic Council Director Larry Kudlow told Fox Business this week. This back-to-work bonus is “something we’re looking at very carefully.”
Many Republicans have stated that they are looking for a stimulus package that is “narrowly tailored” to benefit the people who need it the most. (One of the biggest oppositions to another round of stimulus checks is that many people will receive them who just flat out don’t need them.)
This solution sounds like something pretty narrowly tailored since it is focused on getting people back to work who have been without work.
Of course, there are many Americans who are not on unemployment but still in need of financial assistance so that $450 a week proposal would not benefit them.
I personally could see this program getting introduced as a way to replace the enhanced unemployment benefits that are currently being offered.
But I can’t see this $450 a week benefit replacing another round of stimulus checks altogether. I still am optimistic that another round of stimulus checks will be going out.
Daniel Gillaspia is the Founder of UponArriving.com and the credit card app, WalletFlo. He is a former attorney turned travel expert covering destinations along with TSA, airline, and hotel policies. Since 2014, his content has been featured in publications such as National Geographic, Smithsonian Magazine, and CNBC. Read my bio.
How about the ones on social security who have worked all their lives we deserve consideration too
Yes I agree!
Especially when we depend on our investment income to supplement our social security. Our financial investments took a huge hit so we would be pulling out principal money, not investment earnings if we withdrew any right now. Also, we receive rental income from a house we own and both adults in the household have been laid off, so rent payments are late, short or just not paid.