Amnesty, Citizenship, compromise, COVID-19, expanded unemployment benefits, fairness, Illegal immigrants, illegal workers, immigrant workers, Pelosi, Pork Barrel, representation, Schumer, unemployment, US Congress, US House
A $600 per week supplement to regular unemployment insurance means that unemployed janitors receive unemployment benefits which are, on average, over 1 1/2 times more than what they earned working, “while janitors who continue to work at increased health risk in businesses deemed ‘essential’ have no guarantees of any hazard pay or increased earnings…” (Ganong et al. May 15, 2020 https://bfi.uchicago.edu/wp-content/uploads/BFI_WP_202062-1.pdf)
“It’s also unfair to the teachers, police officers, firemen, healthcare workers, and others who continue to get up and go to work to have someone on unemployment making more by staying home.” (US Senator Lindsey Graham, August 4, 2020)
Remember $600 is on top of regular unemployment benefits, which varies by state and earnings.
“Under the CARES Act, 68% of workers have [income] replacement rates above 100%. The median replacement rate is 134% and workers in the bottom 20% of the income distribution have replacement rates above 200%.” (Ganong et al. May 15, 2020 https://bfi.uchicago.edu/wp-content/uploads/BFI_WP_202062-1.pdf )
Working households are spending less and non-working more. That’s not fair.
And, people are supposed to stay home not shop:
“People who got the extra money did spend more than those with jobs. JPMorgan Chase Institute, a think tank associated with the bank, found that households receiving benefits spent 10% above pre-pandemic levels, compared to a spending drop of 10% for employed households”. https://www.npr.org/2020/07/27/895674685/-600-a-week-poverty-remedy-or-job-slayer How many went to beaches and protest-riots as a vacation?
It sounds like a free standing bill. If not what is it an amendment to?
“Aug 04 2020
Graham Introduces Amendment To Correct Pandemic Unemployment Assistance
WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today introduced an amendment that would make changes to unemployment benefits which have seen an estimated 70 to 80 percent of unemployed individuals making more on unemployment benefits than they did at their jobs.
Under the Graham amendment, unemployed individuals in South Carolina would continue to receive up to $326 from the state. The current $600 per week federal unemployment benefit would be lowered to $500 for the months of August and September.
Beginning October 1, an unemployed individual would continue to receive up to $326 a week from the state plus a federal benefit of up to $500. The benefit would cover up to 100 percent of an unemployed individual’s pre-pandemic wages.
“I’m sympathetic to those who have lost their jobs through no fault of their own and want to help make them whole,” said Graham. “However, we cannot continue the $600 per week federal benefit which is now paying unemployed South Carolinians over $48,000 a year. In many cases someone on unemployment has received a pay raise and is making more on unemployment than they did at their job. It’s also unfair to the teachers, police officers, firemen, healthcare workers, and others who continue to get up and go to work to have someone on unemployment making more by staying home.
“This amendment will help bring the system back into balance. Reshaping the unemployment benefit to continue helping people – but not paying them more in unemployment than they made when they were working – is very important to me.”
Ensures that states are reimbursed for 75 percent of unemployment costs for nonprofit, government agency, and Indian tribe employees.
Includes $2 billion to assist state unemployment systems in upgrading unemployment systems and ensuring better program integrity.
Provides $1.15 billion to states to process unemployment claims and upgrade systems.
Includes an emergency declaration to address pay-go concerns.
Graham noted that earlier this week the South Carolina Chamber of Commerce, South Carolina Restaurant and Lodging Association, South Carolina Retail Association, and National Federation of Independent Business wrote to the South Carolina congressional delegation expressing concerns about a continuation of the $600 per week federal supplement is harming South Carolina business.
“The additional $600 per week unemployment payment has caused many South Carolina businesses to face ‘recall resistance’ from employees because the extra-large benefit exceeds many individuals’ prior weekly earnings,” wrote the organizations.
“This provision is inadvertently impeding businesses’ ability to fully re-open and get our state’s economy back on track…In South Carolina, employers are seeing first-hand the unintended consequences of the extra $600 weekly benefit that exceeds many individuals’ weekly earned wage. DEW (Department of Employment and Workforce) reports that they have seen incidents of individuals refusing work because they make more on unemployment. Employers are being told stories of ‘ghosting,’ a scenario in which an applicant is applying for a job, interviewing, but not showing up for work in an effort to continue to receive the extra unemployment benefits.””
: https://www.lgraham.senate.gov/public/index.cfm/2020/8/graham-introduces-amendment-to-correct-pandemic-unemployment-assistance Will the upgrades be US workers or foreigners? That part sounds like pork barrel, in part.
“unemployed janitors who worked at businesses which are closed can get UI benefits equal to 158% of their prior earnings, while janitors who continue to work at increased health risk in businesses deemed “essential” have no guarantees of any hazard pay or increased earnings…” See: “US Unemployment Insurance Replacement Rates During the Pandemic” Peter Ganong, Pascal Noel, and Joseph Vavra May 15, 2020 https://bfi.uchicago.edu/wp-content/uploads/BFI_WP_202062-1.pdf Includes great charts-diagrams showing per state differences. See especially Figure 3, which shows how much, on national average (median), people who sit home vs work make in weekly earnings (deciles).
Federal Minimum workers wage $7.25 x 40 = $ 290 per week so unemployed earn almost 3 times the amount of those working, ie almost 300% more, according to Figure 3.
Beginning Walmart workers wage $12.00 x 40 = $480 per week. They would make almost twice as much by staying home, according to Figure 3. That’s not fair.
“Walmart Boosts Starting Hourly Pay to $12 for Some Staff in Test” By Matthew Boyle https://www.bloomberg.com/news/articles/2020-01-24/walmart-boosts-starting-hourly-pay-to-12-for-some-staff-in-test
“At the request of your staff, the Congressional Budget Office has examined the economic effects of extending the temporary increase of $600 per week in the benefit amount provided by unemployment programs…. Roughly five of every six recipients would receive benefits that exceeded the weekly amounts they could expect to earn from work during those six months…“. https://www.cbo.gov/system/files/2020-06/56387-CBO-Grassley-Letter.pdf
Even large companies won’t be motivated to pay more, if the “Democratic“ Party bill passes, because they can legally hire illegal workers. Under their bill illegals can work for “90 days after the date on which such public health emergency terminates. “ The employer won’t even be penalized.See SEC. 191203. TEMPORARY PROTECTIONS FOR ESSENTIAL CRITICAL INFRASTRUCTURE WORKERS. “ HR 6800 https://www.congress.gov/bill/116th-congress/house-bill/6800/text Pelosi-Schumer are aiming to replace Americans.
Excerpts from FAIR news release
“House Passes HEROES Act Amnesty
By Preston Huennekens | FAIR Take | May 2020
The battle for the Phase IV coronavirus bill is officially on, as House Democrats laid out their demands by passing H.R. 6800 – the HEROES Act by a vote of 208-199. This FAIR-opposed bill would grant a de facto amnesty to illegal aliens working in “essential” industries, give them stimulus checks, release nearly everyone detained by ICE, and expand some forms of legal immigration.
This follows a pattern established during the Phase III coronavirus stimulus debate which eventually produced the $2 trillion bipartisan CARES Act. The final version of the CARES Act was devoid of any troubling immigration provisions, which infuriated some progressive House Democrats. Soon after passing the CARES Act, scores of House Democrats demanded that the next round of funding (Phase IV) include illegal aliens…
During CARES Act negotiations, the Senate’s GOP leadership stripped the House’s immigration demands out of the final product. The question becomes this: how hard will Speaker Pelosi fight for the HEROES Act’s immigration provisions in the final Phase IV stimulus bill? Alternatively, how hard will Leader McConnell fight to keep these sections out?...” Read more here: https://www.fairus.org/legislation/federal-legislation/house-passes-heroes-act-amnesty