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IPFS News Link • Economy - Economics USA

Keep your handout money, Joe!


Five Republican governors are declining federal coronavirus aid from President Joe Biden by ending the $300 per week enhanced unemployment benefits in their states.

The moves from GOP Governors Kay Ivey in Alabama, Asa Hutchinson in Arkansas, Tate Reeves in Mississippi, Greg Gianforte in Montana and Henry McMaster in South Carolina over the last week comes after Republicans demanded Biden drop the boosted benefits. 

The enhanced federal payments were created last year to assist those put out of work in the midst of the coronavirus pandemic, but governors are now worried their states' economies won't recover if people continue to be incentivized to not work.

'It has become clear to me that we cannot have a full economic recovery until we get the thousands of available jobs in our state filled,' Reeves tweeted Monday.

The move to reject the extra money comes as new expert analyses show those who made $32,000 before COVID-19 hit are now making more in benefits staying at home and collecting than if they were to go back to work.

The average U.S. salary for an individual in 2019 was $31,133. This means the average Americans could earn more money in coronavirus-era benefits instead of going back to work. 

Mississippi's governor wrote in a statement declining the boost: '[I]t has become clear that the Pandemic Unemployment Assistance (PUA) and other like programs passed by the Congress may have been necessary in May of last year but are no longer so in May of this year.'  

Hutchinson said Tuesday morning it's time to stop paying workers to stay home.

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