President Biden and DC Democrats seem to want to keep subsidizing unemployment forever, or at least through September 6th, but many states are sick of it. Sunday, nine more states (Alabama, Alaska, Idaho, Indiana, Nebraska, New Hampshire, North Dakota, West Virginia and Wyoming) will join Iowa, Mississippi and Missouri in cutting off the extra $300 a week in pandemic unemployment benefits.
With the pandemic ending and businesses reopening, 9.3 million jobs were created in April. But many employers say they can’t get people to apply because they’re currently paid more to stay home than to take an entry level job. The benefits are especially lavish in blue states. For instance, in Massachusetts, someone on unemployment can make up to $1,155 a week, or the equivalent of $60,060 a year for not working, plus state-paid food and medical support. Why accept a job and take a pay cut?
Biden insists that there’s no connection between these payments and continuing unemployment despite plenty of job openings, and Democrats claim there are still many people who can’t find a job and need the support. But we’ll soon know for sure, thanks to the laboratory of the states. By the end of July, more than half the nation (26 states) will have ended the bonus pay. Only one of those states has a Democrat Governor (Louisiana.)
By comparing the red and blue states, we’ll soon know whether unemployment remains higher in states that subsidize it. And if we see a sudden exodus of people moving from red to blue states, we can be pretty certain that’s the only reason.
Note to anyone seeking to extend unemployment: don’t move to California because even they’re tired of people taking money and not even looking for work.