The Democrats and activists in the media are deafeningly quiet when it comes to the unemployment rate. At this stage, determining the explanation for this isn’t a difficult task. Numerous instances have arisen demonstrating that the left’s claim that unemployment benefits did not contribute to the high unemployment rate is a blatant falsehood. Indeed, the results of a recent poll have all but pushed the end of the “unemployment benefits” myth into the box. According to Morning Consult’s study, about 1.8 million jobless Americans have turned down jobs because unemployment benefits pay them more than a job would. The figures show precisely what Republicans have been screaming about how increased government jobless benefits cause individuals to remain home since the beginning of this year.
Moreover, in the wake of this reckless strategy, American firm’s tiny and medium-sized enterprises have been facing severe labor shortages, which has harmed their bottom lines. In addition, the presence of a “we’re hiring” sign in the window of a restaurant, store, or other sort of small company is familiar in many areas. However, according to Axios, 29% of those actively collecting unemployment benefits responded by saying they declined job offers during the pandemic. Forty-five percent of the Group replied to a follow-up query stating they had expressly rejected employment due to their generosity of the benefits.
The federal government’s assistance is set to expire at the end of September. However, due to the high unemployment rate, many governments have already halted the payments. At the end of June, it was reported that the unemployment rate in those states had dropped dramatically. According to The Wall Street Journal, the number of people getting unemployment benefits is decreasing quicker in Missouri and 21 other states that have terminated enhanced and extended payments this month, signaling that ending the assistance may motivate more people to work.
Furthermore, Morning Consult’s chief economist, John Leer, has also expressed concerns that reducing unemployment benefits too soon might result in additional difficulties. He asserted that there would be some searching and matching frictions at work when people transition from unemployment benefits to wage income. The financial burden on the economy is not worth the risk of unemployment benefits. The COVID-19 pandemic and ensuing lockdown have already decimated small companies. However, even after the recovery, they are having difficulty running their operations properly, and the shortage of employees is undoubtedly a contributing factor. Despite the left’s determination to keep as many Americans on welfare as possible, the return to normalcy appears to be progressing well.