The only thing that can derail the recovery from the Covid recession — and that in fact is derailing it, judging by the latest jobs report and hints of inflation — is government policy.
The most glaring mistake is, as the economy expands, to continue supplementing unemployment benefits. Low-income Americans are rational actors. If they can make enough money to get by without working, they will do it.
So Republican governors are stepping in and trying to save their constituents from that most frightening phrase: “I’m with the government, and I’m here to help.”
According to the Daily Mail:
“Ron DeSantis announced this week that Florida would no longer accept Joe Biden’s federal unemployment benefit boost, making it the 23rd state to stop doling out the $300 per week payment to jobless citizens.
“The states, all run by Republican governors, argue that there are plenty of jobs available – and that the boosted benefits disincentivize their constituents to go back to work because they make more sitting and home and collecting.
“Floridians will no longer be eligible to receive the weekly Federal Pandemic Unemployment Compensation starting June 27, the Florida Department of Economic Opportunity (DEO) announced Monday.
“Joining the Sunshine State in opting out of the supplemental payments are Alabama, Alaska, Arizona, Arkansas, Georgia, Idaho, Indiana, Iowa, Mississippi, Missouri, Montana, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming.
“Nebraska, which similarly has a Republican governor, is also considering ending the scheme this summer.
“Maryland and Massachusetts, the last two remaining states with GOP governors, have not considered ending the benefits – and have even doubled down on the boost remaining in place until they expire. The two states are widely blue despite having Republicans in the statehouse.
“The $300 per week benefits are set to expire at a federal level in September.”