Unemployment rate fell faster in 22 states that eliminated supplemental benefits early Federal unemployment insurance benefit slowed employment growth Unemployment rate fell faster in 22 states that eliminated supplemental benefits early By IKE BRANNON and SAMUEL WOLF | November 10, 2021 Shortly after the advent of the COVID-19 pandemic, Congress passed the CARES Act, a $2.2 trillion bill designed to alleviate the negative economic consequences of government-mandated shutdowns. Included in the bill was a $600 weekly federal unemployment bonus payment on top of the state benefits that unemployed workers already could receive. Since the combined federal/state unemployment insurance benefit was greater than the weekly wages of many employees, some economists worried that it might depress employment growth. We decided to examine whether the federal bonus payments served as a disincentive to workers returning to jobs once the economy rebounded. During the throes of the crisis, when many restaurants, retail establishments and other businesses were closed, the boost helped people weather job losses. But to prevent the supplemental benefits from discouraging a return to the workforce, lawmakers set them to expire after six months. That changed in August 2020 when the Trump administration, via executive order, extended the benefit at half of the original $600 rate. The American Rescue Plan, which passed in March 2021, extended this $300 weekly benefit until Sept. 6, 2021 — although states had the discretion to end it earlier, and many did. Read Full Story Here Share This Email Share This Email Share This Email What We're Reading -Independent Institute: For want of trucks, Christmas may be lost for many Americans -The Daily Signal: 'Build back better' bill would build a bigger, not better IRS bureaucracy Our work in advancing free markets, opportunity and prosperity in the Badger State is only made possible by generous donations from our supporters. We never have, and never will, accept government funding. Donate online or email Angela Smith, Director of Development. The Badger Institute is a 501(c)(3) tax-exempt nonprofit organization. Donate Now Listen to our New Podcast "Free Exchange" Free markets, limited government, and individual liberty- you know these principles, now hear the stories of the men and women who embody them and the policies that advance them. Listen as the team from Wisconsin’s Badger Institute come together to demystify, explore, and discover ways to make communities in our state freer and more prosperous, one episode at a time. Subscribe to the Podcast The Badger Institute | 700 W Virginia St, Suite 301, Milwaukee, WI 53204 www.badgerinstitute.org Unsubscribe [email protected] Update Profile | About Constant Contact Sent by [email protected] in collaboration with Try email marketing for free today!