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There was plenty of money that went to individuals as well and I imagine that's driving retail stocks and now consumer prices. 68% of unemployed workers who rec

by bko 5y ago

There was plenty of money that went to individuals as well and I imagine that's driving retail stocks and now consumer prices. 68% of unemployed workers who received benefits were eligible for payments that are greater than their lost earnings: > As a result, though, many people may now be eligible for substantially more money while unemployed than they made while they were working. A new analysis by Peter Ganong, Pascal Noel and Joseph Vavra, economists at the University of Chicago, uses government data from 2019 to estimate that 68 percent of unemployed workers who can receive benefits are eligible for payments that are greater than their lost earnings. They also found that the estimated median replacement rate — the share of a worker’s original weekly salary that is being replaced by unemployment benefits — is 134 percent, or more than one-third above their original wage. A substantial minority of those workers, particularly in low-wage professions like food service and janitorial work, may end up receiving more than 150 percent of their previous weekly salary. https://fivethirtyeight.com/features/many-americans-are-getting-more-money-from-unemployment-than-they-were-from-their-jobs/ https://fivethirtyeight.com/features/many-americans-are-gett...

lumost 5y ago
I suspect these amounts are ultimately a pittance compared to the 20% annual price gain in housing. A common theme of those choosing to no longer work is that housing makes many jobs cost prohibitive to do.
- topkai22 5y ago
  Not sure I get the argument here— federal enhanced unemployment benefits have been over since September, so there is no longer a monetary benefit to remaining on unemployment in almost all cases. Are you arguing people aren’t relocating or something to that effect?
  - lumost 5y ago
    My argument is that government spending on unemployment insurance and direct payments to individuals is tiny relative to money printed by the Fed and stashed in assets via QE
ramphastidae 5y ago
I keep hearing this talking point brought up but I just don’t get it. If you’re making more on unemployment, you’re poor and need money for essentials. It’s unlikely you’re investing in stocks. Also, unemployment doesn’t last forever (mine ran out in less than a year). What am I missing?
- deleted 5y ago
  [deleted]
- harambae 5y ago
  >you’re poor and need money for essentials. It’s unlikely you’re investing in stocks I used to think this way as well, but after browsing /r/wallstreetbets I am not at all convinced you need to have wealthy or responsible to invest/trade/gamble in the stock market. And unemployment abuse is a larger more complex topic.

by bko 5y ago

lumost 5y ago

I suspect these amounts are ultimately a pittance compared to the 20% annual price gain in housing. A common theme of those choosing to no longer work is that housing makes many jobs cost prohibitive to do.

topkai22 5y ago
Not sure I get the argument here— federal enhanced unemployment benefits have been over since September, so there is no longer a monetary benefit to remaining on unemployment in almost all cases. Are you arguing people aren’t relocating or something to that effect?
- lumost 5y ago
  My argument is that government spending on unemployment insurance and direct payments to individuals is tiny relative to money printed by the Fed and stashed in assets via QE

ramphastidae 5y ago

I keep hearing this talking point brought up but I just don’t get it. If you’re making more on unemployment, you’re poor and need money for essentials. It’s unlikely you’re investing in stocks. Also, unemployment doesn’t last forever (mine ran out in less than a year). What am I missing?

deleted 5y ago
[deleted]
harambae 5y ago
>you’re poor and need money for essentials. It’s unlikely you’re investing in stocks I used to think this way as well, but after browsing /r/wallstreetbets I am not at all convinced you need to have wealthy or responsible to invest/trade/gamble in the stock market. And unemployment abuse is a larger more complex topic.