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> Further, it can only happen if the unemployed person qualifies for the maximum benefit in their state, which the vast majority of unemployed people do not. T
by votepaunchy 6y ago
> Further, it can only happen if the unemployed person qualifies for the maximum benefit in their state, which the vast majority of unemployed people do not.
This is backwards. The lower the income the greater the relative benefit from the fixed $600 assistance since as a rule of thumb unemployment pays a little over half of the replacement wage.
The simple solution would be for the government to also pay employed low-wage workers. Then, everyone can continue to buy food and pay rent and no one is earning less while working.
- skwb 6y agoThe $600 UI benefits were mostly done as a means of practicality, because our unemployment systems were so out of date to efficiently calculate someone's actual wage. It's sorta a general broad stroke implimentation that figured that sure, some people may be "overpaid" compared to their regular wage, but the political necessity of passing it ASAP was so great that any delay would be immensely costly.
- dragonwriter 6y ago> The $600 UI benefits were mostly done as a means of practicality, because our unemployment systems were so out of date to efficiently calculate someone's actual wage. It wasn't about actual wages, which state unemployment systems already handle just fine. It was that many systems are too difficult to rapidly change to incorporate complex formula adjustments, but a flat +$N is more easily doable.
- skwb 6y agoNot necessarily so! Gig (and self-employed) workers were included to participate in UI under CARES act, who normally are not eligible for UI benefits [1]. You are correct however in clarifying my statement above. [1]. https://www.marketplace.org/2020/06/05/when-does-the-expanded-covid-19-unemployment-insurance-run-out/ https://www.marketplace.org/2020/06/05/when-does-the-expande...
- dragonwriter 6y ago> Not necessarily so! Gig (and self-employed) workers were included to participate in UI under CARES act, who normally are not eligible for UI benefits Sure, and handling them is a potential system problem, but not one addressed by the flat $600 vs. a more complex add-on choice.