Congress Should Give All Working Americans a $600 Raise
Washington can help cushion the blow to the economy without warping too many incentives.
A drive-though unemployment line.
Photographer: Joe Raedle/Getty Images North AmericaCongress is working to correct some of the warped incentives and potential unfairness created by its initial response to the economic crisis caused by the coronavirus. Because of an across-the-board boost of $600 per week in unemployment benefits, for example, some laid-off workers could now earn nearly $1,000 a week.
It’s not that they don’t deserve the compensation. It’s that, at nearly $50,000 a year, people on unemployment could be making far more than many essential workers do. Such generous benefits will make harder for businesses to keep their employees, leading to more layoffs and more difficulty restarting the economy once the virus has been contained. In addition, many workers still showing up at their jobs may feel slighted or resentful.