Federal Unemployment set to expire July 31? (1 Viewer)

B4YOU

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The offer is a flat $200/wk until October when the 70% of income up to $500 would take effect. A second $1200 at the same income limits plus $500/dependent. More PPP for companies with 50% revenue lost.

People would see a $400/wk reduction for 8 weeks or $3200. But if you are a couple with two kids you will get a flat $3400. I think this comes down to a timing issue. Lots of filers took weeks if not months to get the first $1200. If families see big gaps in funds, then there will be issues.
 

efil4stnias

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The offer is a flat $200/wk until October when the 70% of income up to $500 would take effect. A second $1200 at the same income limits plus $500/dependent. More PPP for companies with 50% revenue lost.

People would see a $400/wk reduction for 8 weeks or $3200. But if you are a couple with two kids you will get a flat $3400. I think this comes down to a timing issue. Lots of filers took weeks if not months to get the first $1200. If families see big gaps in funds, then there will be issues.

House wants 1200 per person capped at 6k per family.

Same qualifications as first round
 

Saint Greg

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How does that work?

When we get laid off in Indiana, Workforce One calls my employer and verifies that we were laid off. If my employer says that we refused work we don't get unemployment.

Yeah the unemployment office called my work to verify that I was furloughed in April. Did they call back every week to make sure I hadn’t been offered a job? I doubt it. I had to log in each week I was unemployed and answer questions before I got paid. But we had a guy in my department that refused the job a month ago but started back today. I’m guessing he wanted that extra month of government checks.
 

DaveXA

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House wants 1200 per person capped at 6k per family.

Same qualifications as first round

$1200 per spouse, $500 per child. Adult children in college...it depends. Didn’t claim my 2 older kids, one got $1200, and the other didn't for some unexplained reason. 2 younger teens got $500 each in addition to the $1200 for each of my wife and I. $3400. Could be higher with more young children but I don't see how cap is $6k when max for parents is $2400 total. Kids are $500 each. Weird number.
 
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Mr. Blue Sky

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The offer is a flat $200/wk until October when the 70% of income up to $500 would take effect.



Still too complicated .


Not trying to shoot the messenger (i know that you personally didn’t come up with the plan).. but that plan presumes that the states can collectively (and *correctly*, based on income) calculate and process 52 million peoples’ benefits in 2 months.. and the $200 per week bridge is too little.. i think most of us would be ok with a reduction from the $600, but not all the way to $200/wk.
 

efil4stnias

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$1200 per spouse, $500 per child. Adult children in college...it depends. Didn’t claim my 2 older kids, one got $1200, and the other didn't for some unexplained reason. 2 younger teens got $500 each in addition to the $1200 for each of my wife and I. $3400. Could be higher with more young children but I don't see how cap is $6k when max for parents is $2400 total. Kids are $500 each. Weird number.

No this go round house wants 1200 per person. Including dependent children.

Capping at 6k ( so fam of 6 gets max 6k.)

Same qualification levels as before 75k individual and 150k married.
 

efil4stnias

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Still too complicated .


Not trying to shoot the messenger (i know that you personally didn’t come up with the plan).. but that plan presumes that the states can collectively (and *correctly*, based on income) calculate and process 52 million peoples’ benefits in 2 months.. and the $200 per week bridge is too little.. i think most of us would be ok with a reduction from the $600, but not all the way to $200/wk.

Oh there will be negotiating by the House.

I suspect it will be tied to their wanting 1200 per person including dependent kids.
 

Saint_Ward

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Forcing businesses to close [rather than allowing markets to invent solutions] created this economic disaster. Maybe it was the right thing to do, maybe it wasn't. All I know for sure is that 2020 will be studied for decades.
What's the market solution for a bar? What's the market solution for large gatherings with food or drink? Entire industries are screwed either way.
 

Saint_Ward

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The issue isn't that 70% is too complicated for states to figure out. States are 4-5 months into the initial crush of claims and adding one formula to a state UI system shouldn't break it. However, systems always find a way to fail and will need weeks to months to implement. The benefit of a 70% number is that it should somewhat account for cost of living differences.

The issue is the federal government shouldn't subsidize low UI states. If you make $40K, median US wage, then 70% of that breaks down to a weekly of $538. If you live in a state with $550+ UI, then you would get nothing from the feds. If you live in a sub $300 max benefit UI state, then the feds will make up the difference.

Just offer a flat $250-350 federal benefit. If they still want to do a 70%, then do it over the combined state UI and federal base amount. Most people will be covered by the lower federal flat amount that is already in place with less chance of system failures. States could even run the %-over checks as a separate issuance a month or two later if needed.

Edit: remove some text

Honestly, looking at it, it's not that big of a cost, compared to other parts.

As of June there were about 30 Million people receiving unemployment benefits. Not sure if all of them quality for CARES Act money, but let's assume they do.

$600/week, over 13 weeks, for 30M people.. That's $234Billion. Not chump change, but also, less than the approximately $290 Billion spent on the stimulus checks to all Americans, The $500Billion for the Treasury to use however, the $350Billion for the PPP.

Make it $400/week, and it's $156 Billion.

I'll use myself as the example again, the $600/week, with me missing 2 days a week was almost a break even point. With me now only missing 1 day of work a week, it's a slight advantage to me. So, in a way, it's a bonus for still working through this.

If I were actually laid off or furloughed.. no way the $275 from Florida plus the $600 from the Fed would pay my bills. I'd be able to cover rent, electric, water, and maybe some food. Lots of things would have to go. Would probably have to sell a car..
 

Saint_Ward

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We'll never know, will we? Just because you can't imagine a solution, doesn't mean one doesn't exist.
It's been 6 months. 4-5 since the first shut downs. I have plenty of ideas, my creativity isn't the problem, I'm asking, where are the solutions? The market has had time. Maybe, the reality is, that the market can't fix this. We need to take our medicine. But, that's out the window too, since most people are inherently selfish.
 

B4YOU

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What's the market solution for a bar? What's the market solution for large gatherings with food or drink? Entire industries are screwed either way.

We need to let some businesses fail, especially in the Accommodation and F&B sectors that offer low wages and low margins. Some will go out of business. Reduced competition and increased demand on those that remain will see margins increase. People will start a business or expand when they see vacant property with existing equipment and good industry margins. These sectors were arguably over saturated pre-Covid. The banks can take losses on commercial real estate until the business cycles back to growth.
 

Saint_Ward

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We need to let some businesses fail, especially in the Accommodation and F&B sectors that offer low wages and low margins. Some will go out of business. Reduced competition and increased demand on those that remain will see margins increase. People will start a business or expand when they see vacant property with existing equipment and good industry margins. These sectors were arguably over saturated pre-Covid. The banks can take losses on commercial real estate until the business cycles back to growth.
My issue is that bars will make a ton of money, but are COVID-19 spread factories. What's the solution to allow them to remain open, but not spread the disease? People were going, because they're stupid and think the risk isn't a big deal.

There is no way to follow the various state and CDC guidelines.

What you're talking about is going to happen eventually, because there is no way various sectors can stay out of business... but we need them to be shut down, since they can't be opened safely. It's a rock and a hard place.
 

Saint Greg

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If I were actually laid off or furloughed.. no way the $275 from Florida plus the $600 from the Fed would pay my bills. I'd be able to cover rent, electric, water, and maybe some food. Lots of things would have to go. Would probably have to sell a car..

See that's why a one size fits all solution isn't good. When I was on furlough my take home pay from the government would come to just under 40k/yr...take home. The average salary in my town is 25k. The median household income is 50k..before taxes and healthcare and 401k. This is big money being given away here.
 

Mr. Blue Sky

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Honestly, looking at it, it's not that big of a cost, compared to other parts.

As of June there were about 30 Million people receiving unemployment benefits. Not sure if all of them quality for CARES Act money,




Ive seen that it’s 52 million people out of work due to Covid, not sure if correct but ive seen it a couple different places
 

Mr. Blue Sky

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. This is big money being given away here.



Except it’s not.


As ive mentioned before, nobody getting rich off the types of money we’re talking about, not even close.. There isnt a perfect answer, and it might not be 100% equitable in every town in America.; god forbid someone who’s been subsisting on near poverty wages (which is what $25k a year in the year 2020 is) might have a little more in their pocket during a finite, temporary period of time, which is what this is.. That same exact amount of money would amount to a pay cut in a lot of places in America, but not to sound like a broken record, iT just needs to be As simple and easily implemented as possible.
 

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