States That Ended Jobless Benefits Saw Worse Jobs Gains

[applegrove]

States That Ended Jobless Benefits Saw Worse Jobs Gains

August 5, 2021 at 3:12 am EDT By Taegan Goddard 22 Comments

https://politicalwire.com/2021/08/05/states-that-ended-jobless-benefits-saw-worse-jobs-gains/

"SNIP.......

CNBC: “About half of U.S. states withdrew federal funds for the unemployed months early to encourage out-of-work residents to find a job. But mounting evidence shows that policy gambit hasn’t yet paid off.”

“UKG, a payroll and time-management firm, found that shifts among hourly workers in those states grew at about half the rate as states that continued the benefit — the opposite trend of what one might expect.”

......SNIP"

[2naSalit]

1. Our body-slammer gov...

Cut the funds and decided to use what was left as hiring incentives, didn't work. Still seeing "help wanted" signs all over the place. This is a heavily trafficked tourist area and shitty jobs are available everywhere. Even the McD's is offering over $15/hr and nobody is taking it.

[cstanleytech]

2. Makes sense that they saw slower growth as it took money out

of the local economy that would have helped support businesses create more jobs.

[Johnny2X2X]

3. Nailed it

Republicans still don't understand the basic truth that our economy is built from the ground up, not the top down. People having money to spend is what drives all of the economic activity in the country.

[Midnight Writer]

5. Exactly. Less money means less purchasing and that means less demand and fewer jobs.

Republicans don't see that economic stimulus works best when it is targeted to people who will actually purchase goods and services rather than to target the wealthy who will squirrel the money away.

[Probatim]

6. The Marginal Propensity to Consume drives economic growth

That's what you're referring to.

Every benefit to the working class gets poured back into the economy - unemployment benefits, food stamps, child tax credits, and the list goes on. And each of these benefits generates returns that are several times their cost.

Tax cuts to the wealthy have always been shown to take money out of the economy. If you give a billionaire a giant tax cut - he's going to spend a very, very small portion of that money. And none of it goes to creating jobs.

The working class spends every nickel they get. And that drives growth.

[Hortensis]

4. "other elements...particularly in personal lives," make going back "really difficult."

“Unemployment benefits were not the thing holding people back from going to work,” according to Dave Gilbertson, a vice president at UKG. “There are other elements out there, particularly in their personal lives, making it really difficult to go back to work.”

That loss of income badly disrupts the structure of lives that enables people to go to work each day is not new information.

Locations, homes, clothing, transportation, child care, health, money, are ALL critical to ability to work. It's why we call these benefits "safety nets" -- to keep people able to restore their wellbeing.

[malthaussen]

7. Or, ya know, the exact trend of what one might expect if he had half a brain. n/t

[crickets]

8. K&R for visibility.

[applegrove]

9. Like the $1000 a month basic income experient. Give people money and

they have the wherewitall to find a job.

[DallasNE]

10. This Is Exactly What I Would Expect To Happen

When you cut benefits you take money out of the economy and that makes for softer demand for goods and services. Softer demand means fewer workers needed to meet the demand. Pretty basic stuff.

[erpowers]

11. Another Republican Idea Proven Wrong

Surprise, Surprise, another Republican idea has been proven wrong. Hopefully this result has been getting a large amount of attention. This needs to be reported on every major news network and every major news show.