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Stimulus Bill: Unemployment Benefits Won’t Exceed Former Wages

Steven Mnuchin in the frame
Source: CNBC.com

Stimulus Bill: Unemployment Benefits Won’t Exceed Former Wages:Β On Thursday, Treasury Secretary Steven Mnuchin said that President Trump has announced that the stimulus bill isn’t going to exceed the previous employment wages.

Also, read Stimulus Check: All The Details We Know!

It means that the officials are going to cap unemployment benefits to ensure that the citizens aren’t getting more than what they were earning previously.

National Unemployment

Due to the advent of Coronavirus Pandemic, many people have reported unemployment in 2020. Over 1 million people got laid-off their jobs this year. This pandemic has cost people their lifetime earnings.

However, the USA government signed a bill for COVID relief. It is- Coronavirus Aid, Relief and Economic Security Act i-e the CARES Act. In this act, the government gave some money to the citizens (who got affected financially and physically) for basic needs.

Mitch McConnell in the frame
Source: CNBC.com

Unfortunately, the citizens took advantage of this relief package and stopped working entirely.

Also, read Trump Says Second Stimulus Check Is Coming β€œVery Soon!”

Why Are The Employment Benefits Getting Capped?

Mnuchin recently gave an interview on CNBC. During the interview, Steven told about the problems they faced after they gave the unemployment benefits. He said:
“I have heard stories of where companies are trying to get people back to work, but they won’t come because of the enhanced unemployment benefits. But, we’ll fix that and figure out an extension to it that works for companies and work for those people who will still be unemployed. We are going to make sure that people are incented to go back to their jobs.”

In any case, the unemployment benefits are going to expire on 31st July. However, Steven also said that he is in favour of extending the unemployment benefits, but, it should protect the employers and employees. Also, people should work rather than sit home and take advantage of the benefits.

All About The Unemployment Benefits

The CARES Act got signed in March to encourage stay-at-home orders. Workers got $600 per week in addition to their regular unemployment benefits. It encouraged the jobless workers to not look for work.

Unemployment benefits impacted lots of people. Experts say the benefits are necessary for the poor as jobless rates have shot-up in America.

However, Mnuchin said that Senate Majority Mitch McConnell said that the new stimulus bill is going to be up by the end of July 2020. Do you think they should extend unemployment benefits? Let us know below in the comment section!

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Pranjali Hasotkar

I weave words into meaningful catastrophes.

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