to shore up a battered economy on Tuesday. Among its planks: extending the federal boost to weekly unemployment payments past July for up to $400, but tying it to the economic health of individual states.
The economists said that beefing up payments for jobless workers provides substantial bang for the buck, especially with the"With the highest unemployment rate since the Great Depression, maintaining unemployment insurance support is essential both to protect families and support demand," the group. "This makes economic sense: Evidence shows that every $1 paid in unemployment insurance adds $1.50 to the economy.
They went on: "But extending the $600 weekly unemployment insurance benefit enacted at the start of the shutdown does not make sense now, when better protections against covid-19 are being put in place and the unemployment rate is coming down." Their proposal would provide income support for jobless workers by granting a weekly benefit of up to 40% of their wages, pegged to a state unemployment rate of 15% or higher. The federal boost would be phased out when the rate drops to 7%.
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