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It's my understand that the unemployed and the out of work "gig" workers will receive an ADDITIONAL $600/week under the new economic stimulus bill. This is in addition to any unemployment benefits they may get, and is also in addition to the $1,200 per adult that they will get.
Let's do some figuring here. Suppose the unemployed get $250 per week in unemployment insurance. That figures out to about $6.25/hour for a 40 hour week. Now let's suppose they get an additional $600 per week. That figures out to about $15/hour. If we combine these two numbers, that figures out to $21.50 per hour. And this doesn't even count the $1,200 which they will receive in a lump sum.
So, a waitress, bartender, ticket taker, uber driver, store clerk, or other person who had a relatively low paying job will now be able to receive $21.50 per hour (plus their $1,200 lump sum) without lifting a finger for the next 6 months. And if there happens to be two such unemployed workers in the same household, they'll be able to draw $43/hour for a 40 hour week of doing nothing for the next 6 months.
I realize that this is not a lot of money for some areas of the country, but in other areas $21.50/hour for one worker or $43/hour for two is pretty decent money for sitting at home and watching reruns on TV. I can imagine that there may be quite a few waitresses, bartenders, and burger flippers who won't be too eager to return to work for the next 6 months.
EDIT: I apologize if this particular subject has been covered in another thread. I haven't read all the threads in the Economics forums.
We pay a lot of people to change their behavior. Farmers are paid to grow certain things. I just read they are paying Dairy farmers to dump thousands of gallons of milk. Money is a big motivator.
We pay a lot of people to change their behavior. Farmers are paid to grow certain things. I just read they are paying Dairy farmers to dump thousands of gallons of milk. Money is a big motivator.
This "payment for dumping" of milk is a very temporary thing and was not planned. It was due to the sudden reduced demand for milk brought about by the CV situation closing down a lot of restaurants and schools who normally buy a lot of the milk product. You can't just flip a switch and shut off milk producing cows. Well, I suppose you could slaughter them, but then you'd have a very difficult time starting production again.
"For now, Dairy Farmers of America, the cooperative the Elbe family belongs to, has agreed to pay them for their milk that’s being dumped. But, like most coops, DFA is in tough financial shape and can only afford to do that for so long."
Yeah, that's kind of the point. I'd still rather be working but I don't know how much so I may be on partial UI in the months to come. I'm winding down on my existing work now and at this point so far I've brought in about 20 hours of work in the last two weeks. Better than nothing and it gives me something to do but it's not like I can survive on 10 hours a week indefinitely.
It's my understand that the unemployed and the out of work "gig" workers will receive an ADDITIONAL $600/week under the new economic stimulus bill. This is in addition to any unemployment benefits they may get, and is also in addition to the $1,200 per adult that they will get.
Let's do some figuring here. Suppose the unemployed get $250 per week in unemployment insurance. That figures out to about $6.25/hour for a 40 hour week. Now let's suppose they get an additional $600 per week. That figures out to about $15/hour. If we combine these two numbers, that figures out to $21.50 per hour. And this doesn't even count the $1,200 which they will receive in a lump sum.
So, a waitress, bartender, ticket taker, uber driver, store clerk, or other person who had a relatively low paying job will now be able to receive $21.50 per hour (plus their $1,200 lump sum) without lifting a finger for the next 6 months. And if there happens to be two such unemployed workers in the same household, they'll be able to draw $43/hour for a 40 hour week of doing nothing for the next 6 months.
I realize that this is not a lot of money for some areas of the country, but in other areas $21.50/hour for one worker or $43/hour for two is pretty decent money for sitting at home and watching reruns on TV. I can imagine that there may be quite a few waitresses, bartenders, and burger flippers who won't be too eager to return to work for the next 6 months.
EDIT: I apologize if this particular subject has been covered in another thread. I haven't read all the threads in the Economics forums.
As I understand it, it is UP TO an additional$600/w, depending on what their actual earnings were. AIUI, it is not an automatic$600/week.
Besides, "these people" don't usually have money to do things like invest in the stock market.
I don't see you posting a thread railing against people who invest in the market and then sit back "being paid" as the stock market makes them money while they "sit at home watching reruns on TV".
True, if "these people" had the chance, and could learn how to, and would actually do it, they could use the extra money TO invest it in the stock market in an IRA, or a Roth IRA.
Right now, though since most stores are closed, they will probably use the extra money for things like rent, utilities, and FOOD for themselves and their families.
All forebarance payments WILL become due and payable when this lets up. So they don't get out of paying their rent, etc.
Also, unenployment is only a PARTIAL payment of lost wages, NOT ful reimbursement. So the up to $600/w may help replace just the total wages lost. I think that was the idea behind boosting unenployment payments, not to "unjustly enrich" them.
Besides, would you rather they "sit back and watch TV" while collecting welfare, on the taxpayers dime??
Some of the businesses they worked for WON'T come back, the smaller Businesses won't be able to weather the crisis for an unending unknown term. There may be a shortage of jobs once things "return to normal".
Even some indebted major large companies may not come back, they will go bankrupt without sales.
Lastly, this won't "magically" be over and "everything back to normal" when the crisis is deemed "over". These people may actually need the extra funds to pay up the high bills like rent when all back rents or payments become due and payable all at once.
And, even when they do go back to work, there will be a lag time before the paychecks, either weekly or biweekly become Regular again.
Hopefully they will be smart enough to use the extra funds to keep current on their bills, or get ahead of the game, and be smart enough to do things like start IRA s or Rotgs as I mentioned above.
Welfare? Extra unemployment? Which would you rather have? At least SOME of the unenployment is paid into by employers for the insurance against job loses, so it's not all direct taxpayers money.
Best to all who have lost their jobs during these uncertain times....
You cannot receive the new $600/week for six months. The maximum time, under the current bill, is to receive it from April 5th to July 31st - so just under four months. Another thing to keep in mind is that the people who have lost their jobs may now have to pay for their own health insurance, which isn't cheap. I, for one, wouldn't want to be without health insurance during a pandemic.
"Under the Federal Pandemic Unemployment Compensation (FPUC) program, eligible individuals who are collecting certain UI benefits, including regular unemployment compensation, will receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020."
You cannot receive the new $600/week for six months. The maximum time, under the current bill, is to receive it from April 5th to July 31st - so just under four months. Another thing to keep in mind is that the people who have lost their jobs may now have to pay for their own health insurance, which isn't cheap. I, for one, wouldn't want to be without health insurance during a pandemic.
"Under the Federal Pandemic Unemployment Compensation (FPUC) program, eligible individuals who are collecting certain UI benefits, including regular unemployment compensation, will receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020."
Thanks for the correction about ~4 months instead of 6 months duration.
As for the health insurance part, well, I doubt that many of the waitresses, bartenders, ticket takers, and burger flippers have health insurance benefits as part of their job.
I certainly hope that everyone gets their job back very quickly and that things can return to normal very soon. I just don't want to see a situation where people make more money staying home than they would make by working. If they do, that won't bode well for the re-start of many businesses... until the benefits run out.
Besides, "these people" don't usually have money to do things like invest in the stock market.
I don't see you posting a thread railing against people who invest in the market and then sit back "being paid" as the stock market makes them money while they "sit at home watching reruns on TV".
True, if "these people" had the chance, and could learn how to, and would actually do it, they could use the extra money TO invest it in the stock market in an IRA, or a Roth IRA.
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I don't see your point with the part I bolded. People that are investing in the stock market are usually doing it with their own earned money, not a government handout.
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