Ending pandemic unemployment aid has not yielded extra jobs—yet
American states that cut off extra benefits have seen increases in hardship, but not in employment
ONE OF THE questions gripping America is the extent to which generous unemployment benefits are distorting the economy. When covid-19 began to spread last year, Congress expanded unemployment insurance (UI) by topping up payments, allowing recipients to claim for longer and widening the eligibility criteria. The aid helped preserve incomes during lockdowns and fuelled consumer spending during the recovery. In March lawmakers extended federal funding for the benefits. But it is due to expire on September 6th—with consequences that are uncertain.
This article appeared in the Finance & economics section of the print edition under the headline “Disappearing incentives”
Finance & economics August 28th 2021
- The new Powell doctrine
- Ending pandemic unemployment aid has not yielded extra jobs—yet
- Out of Bill Ackman’s SPAC woes comes innovation
- Russia cultivates alternatives to Western financial firms
- Trading in Japanese government bonds is drying up. Does that matter?
- Xi Jinping’s talk of “common prosperity” spooks the prosperous
From the August 28th 2021 edition
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The great-man theory of Wall Street
Why finance is still dominated by bold individuals
Hong Kong’s property slump may be terminal
Demographics and geopolitics will make a recovery harder
Why everyone wants to lend to weak companies
An unanticipated side-effect of Donald Trump’s election victory
American veterans now receive absurdly generous benefits
An enormous rise in disability payments may complicate debt-reduction efforts
Why Black Friday sales grow more annoying every year
Nobody is to blame. Everyone suffers
Trump wastes no time in reigniting trade wars
Canada and Mexico look likely to suffer