Trump Economists Say Democratic States Harm Recovery by Not Ending Biden’s COVID Benefits

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Trump economists say Democratic governors risk ruining economic recovery if they don’t end Biden’s additional unemployment benefits, which could reach $25 an hour, leaving workers at home

  • A new report for the conservative Committee to Unleash Prosperity urges governors to cut Biden’s $300-a-week COVID payments
  • Casey Mulligan, Steven Moore and EJ Antoni found that households in 21 states could take home a wage of $25 per hour with all eligible benefits
  • In 19 states, benefits equal $100,000 for a family of four with two unemployed parents
  • About 25 states — all Republicans — have said they will end $300 weekly payments
  • Moore said: ‘If any state had to cut additional unemployment benefits, it should be the blue states’

Democratic governors run the risk of their states falling further behind the red states in rebuilding COVID-19 if they don’t immediately halt President Biden’s $300 weekly unemployment benefits, according to a new study.

It found that in 21 states, eligible households can receive a maximum wage worth $25 per hour in cash without working thanks to a large number of payments.

The benefits are under intense scrutiny as economists grapple with a sluggish labor market despite the end of lockdowns and widespread vaccine distribution.

Some 25 states — all with Republican governors — have announced they will end payments next week.

But Steven Moore, who ran President Trump for a seat on the Federal Reserve Board before dropping out, said blue states needed more of a lift.

“Right now, blue states in America have an unemployment rate about two percentage points higher than red states,” he said.

Rising job opportunities are used by opponents of additional unemployment benefits to argue it's time for President Biden to cut subsidies they say are a barrier to job search as shops and businesses reopen

Rising job opportunities are used by opponents of additional unemployment benefits to argue it’s time for President Biden to cut subsidies they say are a barrier to job search as shops and businesses reopen

Economist Steven Moore called on more states to end President Biden's $300 Supplemental Unemployment Benefit, which he said discouraged people from seeking work

Economist Steven Moore called on more states to end President Biden’s $300 supplemental unemployment benefit, which he said discouraged people from seeking work

In May, the US economy added 559,000 jobs, less than the 675,000 jobs economists had forecast, but better than the 266,000 workers showed in April.

In May, the US economy added 559,000 jobs, less than the 675,000 jobs economists had forecast, but better than the 266,000 workers reported in April.

“So if a state had to cut the extra unemployment benefits, it would have to be the blue states to get people back to work, and that’s not happening.”

The latest figures from the Bureau of Labor Statistics show 9.3 million unfilled jobs in America at a time when some nine million people are listed as unemployed.

Small businesses complain that they can’t attract employees.

Congress approved Biden’s $1.9 trillion American Rescue in March, extending Biden’s $300 surcharge until September.

But since then, 25 states have announced they would suspend payments in June or July, citing workers’ slow return to the job market.

The new report describes the impact of the payments. Authors Moore, Casey Mulligan, who was chief economist with the White House Council of Economic Advisers under President Trump and Antoni, of the Texas Public Policy Foundation, claim that in 19 states, benefits equate to $100,000 income for a family of four. with two unemployed parents.

When the COVID shutdowns were at their peak last year, there was no barrier to work, they write in a paper for the Committee to Unleash Prosperity.

“Whether that policy made sense a year ago or not, it’s clear that America today faces the opposite problem,” they continue.

“Demand for workers is very high now that the pandemic is almost completely behind us and businesses are reopening.

“Labour shortages are now a deterrent to economic growth, and in most states, jobs in most occupations are widely available.”

The most recent jobs report showed that employers added 559,000 jobs in May, less than Wall Street’s forecasts. It was the second time in a row that the numbers fell short of expectations.

Rep. Jackie Walorski, who sits on the House Ways and Means Committee, said even Biden had now admitted it was time to end the extra benefits.

“So after two dismal monthly job reports and with more than 9 million job openings left unfilled nationwide, President Biden even said it makes sense to end these enhanced benefits when they expire in early September,” she said.

“Of course we’d like them to end today.”

Last week, the president said they had done their job and would end as planned.

“A temporary increase in unemployment benefits that we’ve introduced has helped people who have lost their jobs through no fault of their own and who may yet need to get vaccinated,” he said during a visit to Delaware.

“But it expires in 90 days — it makes sense that it expires in 90 days.”

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