Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.If extra federal unemployment insurance is cut to $200 per week, consumer spending will slump 28%, according to a study releasedConsumer spending would drop 12% if the extra unemployment benefit is slashed to $400 per week, the study found.
If extra federal unemployment insurance is cut to $200 per week, it will reduce the wage replacement rate by 44% and lead to a 28% drop in consumer spending,Even a cut to $400 in extra weekly unemployment insurance would lower the wage replacement rate by 29%, and lead to a 12% fall in consumer spending, the study found.
The study comes amid a debate on the future of the extra federal unemployment insurance benefit. In March, the CARES Act established an additional $600 per week to unemployed Americans, But at the end of July, the benefit expired without a plan in place for what aid is coming next to the roughly 30 million Americans who are still unemployed. When it expired, the average weekly UI benefit fell to about $257 from $812, suggesting a 68% decline in the wage replacement rate, the study found.
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