The federal Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act, was a massive piece of legislation. For example, one thing the CARES Act did was to establish a temporary federal unemployment benefit in addition to state level benefits. These payments did help jobless Americans keep their households afloat and provide a boost to spending. However, at the same time the overall costs mounted, many companies started sounding the alarm about filling openings. Soon, many wondered how the lapse in unemployment benefits would affect the economy. Now, we will find out.
At the end of July, the $600 federal unemployment boost expired. Most agree there is a need for continued enhanced benefits for the most needy. However, there is some debate about the generosity and threshold for eligibility. For the time being, Congress continues to debate how to proceed.
Both parties are trying to negotiate a bipartisan agreement. However, because the aid package is so wide-ranging there is much more to be done. One thing all parties agree is that there are major differences remaining between them on a wide variety of issues. As a result, it may take quite some time until Congress passes another stimulus package. In the meantime, there is a growing interest in what will happen next.
ISEG Research Fellow Abigail Devereaux Featured on NPR’s Up to Date to Discuss Outcomes from the Lapse in Unemployment Benefits from the Federal Government
On August 3, 2020, Steve Kraske interviewed Dr. Abigail Devereaux, Research Fellow at the Institute for the Study of Economic Growth (ISEG), on “Up to Date” on NPR in Kansas City. To begin with, Dr. Devereaux explained how the Senate and House were making progress on extending unemployment benefits. In addition, Devereaux covered recent economic studies on the impact on job incentives.
Discover all this and more on the episode “How Lapsing Federal Unemployment Benefits Could Affect The Economy In Kansas & Missouri”. Listen to Dr. Devereaux’s appearance online at KCUR.