Unemployment is a big problem for the United States. In a typical two-week period, we would expect around half a million United States workers to file claims for insurance of unemployment. Nevertheless, we have seen almost 10 million filings over the past two weeks. Thus, we are having an incredible economic catastrophe.
The question is if we can cope with this catastrophe. Early indications are that we might be handling disaster of the fast-moving economy as severely as we deal with the pandemic fast-moving that is a reason for it.
the United States wants to handle the unemployment issue.
Here case thing to realize is that we are not facing a current recession, at least for now. Most job losses are inevitable. Thus, necessary: they are a part of social distancing for limiting the coronavirus outbreak. So, we are going into the equivalent of the economy of a medically induced coma. Thus, some face functions temporarily shut down for giving the patient a chance to heal.
That means that the principal of economic job policy right now is not for providing the stimulus. Thus, it is to sustain gross domestic product and sustain employment instead. Moreover, it is for providing life support for limiting the hardship of Americans who have temporarily lost incomes.
To be sure, there is an extreme risk that we all have a current recession on top of the induced coma. Nevertheless, for now, the focus must be to help those in need.
Unemployment Issue
The positive news is that the Coronavirus AID, Relief, and Economic Security Act (CARES) Congress passed last week on paper. It means it will provide a lot of economic support for life. Nevertheless, negative news is that it seems as if it can be weeks, even months, before severe amounts of cash flow to those who need the aid right now.
Journalists keep referring to the CARES Act as a “stimulus package.” Nevertheless, it is disaster relief. The best piece for the legislation is a significant enhancement of unemployment benefits, which, by the way, Democrats forced unwilling Republicans to include. Not only the laid-off workers will get much more than they would typically get, but many workers who were not previously covered by the insurance of unemployment, such as independent contractors and freelancers, are supposed to receive full benefits.
The legislation provides loans to small businesses. That loans will delete, becoming into the straight subsidies. It will be in case companies use the money for maintaining their payrolls.
Both programs are perfect ideas and helpful ideas. Nevertheless, the trouble is that both have a hard time to begin. And time is what millions of Americans who are in stress and living on the edge, don’t have.
Benefits of unemployment: offices of State unemployment are overwhelmed by the surge in the applications that are not ready for disbursing these extra benefits. They might not be ready for quite a while.
A crippling lag in processing is what small business loans are facing. The potential borrowers are either being told that they will have to wait three weeks or unable to complete the forms; moreover, for some reason, the federal government is channeling small-business lending through private banks.
