Americans have had to form a completely new plan to deal with the economy in the year 2020 when an unprecedented shutdown was deemed necessary for the preservation of millions of lives. Americans were willing to do whatever it took to keep themselves, their friends, and family alive. What they weren’t willing to do was let the nation slip into an economic depression after it was safe to go back to work, but that’s almost what happened.
Thanks to the quick thinking and skilled leadership of several Republican governors, states that took common-sense measures to fix the economic problems showed that the economic downturn didn’t have to continue, but that success seems to be still resisted by the governors of the more liberal states in the union.
An article in The Bongino Report highlighted what “Pandemic-era unemployment” was doing, and how now that there is a legitimate labor shortage, it is a think of the past, thanks to Republican leadership. The report showed that in April of this year the economy added more than 550,000 new jobs, and there were a record 9.3 million job vacancies
“Among the culprits for the shortage have been enhanced federal unemployment benefits, which give a $300 boost in addition to other state-level unemployment benefits. Since traditionally low-paying sectors such as foodservice and leisure and hospitality have yet to recover fully, there’s a strong case to be made that the extra benefits are deterring people from looking for work (and who can blame them?). Due to the enhanced benefits, many are in the position where they can either earn more by not working or earn close enough to what they would [be] working that work isn’t worth the effort,” the Bongino report stated.
However, this is not at all an across-the-board bad thing. As it turns out more than half the states in the union have taken measures to fix their labor shortage, including demolishing their weekly $300 increase in unemployment benefits, which were going to expire nationally in September of this year. However, the states that ended the extra benefits stopped them for an estimated 3.8 million Americans (if you’ll notice here, that’s around double the labor deficit that America is currently facing.
This halt in extra funds did what common sense would dictate was going to happen and people are going out to hunt for jobs. The deficit in these Republican lead states have had a steeper increase in employment than states that kept the extra “free money” for formerly gainfully employed citizens.
“The 26 states that have announced their plan to end participation in the $300 weekly unemployment bonus have seen a 12.7 percent decline on average in initial claims over the past week,” the fiscally-conservative Foundation for Government Accountability reports. “Meanwhile, states that have indicated they will continue participating in the unemployment bonus programs have seen an increase in initial claims by an average of 1.6 percent during this same period. The 12 states that have officially opted out of the $300 weekly bonus thus far have seen consistent declines each week since ending participation in the bonus.”
In other words: Republicans and Democrats are once again complaining about the same very obvious problems, that’s unemployment and a job deficit, but as usual, they both have very different solutions. Democrats want to again subsidize people doing nothing and getting a lot of money for it and Republicans took away the benefit to the actions they wanted to pause. Guess which one works? And guess who is whining, even though the problem (which everyone agreed we had) is getting solved?
So, to recap: Republicans treated their states like parents dealing with an unruly teenager and won the day. All others are still the proverbial parent watching their child scream and throw a tantrum in the grocery store aisle while the other patrons give them a wide birth and talk about them in hushed tones. Also, the parents of the screamers are giving out parenting advice.