Is COVID-19 Relief Encouraging People Not to Work? Dems Say, 'No Evidence.' When Have Dems Needed Evidence?

Townhall.com ^ | May 13, 2021 | Larry Elder

[Kaslin]

"Experts" predicted 1 million jobs would be created in April. The actual number fell far short, at 266,000. Republicans warned that overly generous COVID-19 relief benefits create a disincentive to work.

The day before this disappointing jobs report, Bloomberg wrote: "In earnings calls and business surveys, executives often blame stimulus checks and generous unemployment benefits for hampering hiring efforts. ...

"Friday's employment report, which is projected to show the economy added 1 million jobs in April, should offer new insight into this mismatch and whether it's deterring growth."

When the numbers came in, Biden administration officials lacked no shortage of excuses. Some potential workers, they argued, feared going back to work because of COVID-19; many schools had still yet to resume in-school learning, particularly burdensome for single parents; we're still early in the bounce back from the COVID-19-stricken economy; one month's worth of numbers does not a story tell; and employers just need to raise wages.

Labor Secretary Marty Walsh urged perspective: "Well, you know, under normal circumstances, and certainly we're not living in normal circumstances, the 266,000 job gain a month is a good number. Unfortunately, we're still in the midst of a pandemic."

resident Joe Biden rejected the elephant-in-the-room possible explanation for the disappointingly low April job numbers -- that the generous provisions in the COVID-19 relief packages, coupled with state and local aid, create a disincentive for people to go back to work. Biden dismissed "loose talk that Americans just don't want to work.... The data shows that more workers are looking for jobs, and many can't find them."

But Bloomberg wrote, "Anyone who previously made less than $32,000 per year is better off financially in the near term receiving unemployment benefits, according to economists at Bank of America." Blog writers for the libertarian Cato Institute wrote: "Combined with state unemployment benefits, around 37 percent of workers can currently make more unemployed than in work. A low-income worker in Massachusetts previously earning $535 per week faced a pre-pandemic replacement rate of unemployment insurance benefits to earnings of 48 percent ($257). Now, the same worker would obtain benefits worth 104 percent of their pre-recession earnings ($557)."

But not to worry because, writes The Washington Post, a Labor Department spokesperson says his office "has not seen evidence" that the COVID-19 relief benefits incentivize people not to work.

Since when does the Biden administration require "data" or "evidence"? Where is the evidence that a $15 minimum wage will do more good than harm, given that the overwhelming consensus among economists is that minimum wage loss hurt the unskilled? Where is the evidence that a $2.4 trillion "infrastructure investment" plan will do more good than harm, given the necessary massive tax increases? Where is the evidence that universal pre-K for the poor will improve results K-12, given the "fade out" effect that shows no long-term benefit?

There is, however, a great deal of evidence that burdening the economy with more taxes and regulations hurt growth. Eight years into the New Deal plan designed to rescue the economy from the Great Depression, President Franklin Delano Roosevelt's secretary of the Treasury, Henry Morgenthau, wrote: "We have tried spending money. We are spending more than we have ever spent before and it does not work.... I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises.... I say after eight years of this Administration we have just as much unemployment as when we started... and an enormous debt to boot!"

But as long as politicians, in the name of compassion, take money from one party to give to another; borrow money to be paid later with interest; and print money which ultimately triggers inflation, who needs evidence?

[Alberta's Child]

I think the generous unemployment benefits are only one part of the problem here. Personally, I would remain unemployed and collect even the basic unemployment benefits before I ever went back to work for an employer who insists on treating the workplace like it’s a hospital ICU.

[Sacajaweau]

Biden might check the news and listen to the employers.

[usconservative]

We have self admitted moochers here on FR who are saying they're going to suck on the government teat as long and hard as they can, thanks to our Government printing money, driving inflation up and keeping people from working.

Yep, we sure do. And Communists on here too saying the same thing. Just back track through my recent posts to find one of 'em. Easy peasy.

[glennaro]

Some Democrat/Leftist said recently that it's not the more lucrative unemployment benefits that are discouraging people to return to work as much as it is fear of telling customers to wear a face diaper. I agree that the widespread forced masking of healthy people is a factor, but not in this way. Rather, it's because many still-irrationally frightened employers will require returning workers to cover their faces for the entire time they're on the job.

America's new motto (with apologies to New Hampshire): "Live Masked or Die!"

[SharpRightTurn]

Good column.

[cuban leaf]

I had a 150 mile round trip commute. I was going to retire last year. But I’ve been working from home for 13 months with no end in sight. I gain $750 after tax dollars a month (commuting costs), three hours a day, and save a ton on eating out.

I even worked the last five weeks in Seattle while liquidating my dad’s estate (I work in Kentucky).

I don’t know that I will retire until I reach my wits end regarding sound quality in WebEx meetings. It’s practically free money. And I’m in IT which means it’s fairly hefty. I’m not killin’ the golden goose here.

[Alberta's Child]

I’m self-employed. If my business was ever forcibly shut down under government orders related to this stupid COVID hysteria, I would have no qualms about squeezing every penny out of the government’s coffers for the rest of my life.

As it is, I only stayed in business because I steadfastly ignored every government order that told me to shut down.

Actually, to be more accurate I should say that I never even acknowledged receiving any such orders in the first place.

[BitWielder1]

'No Evidence" = I don't want to hear it. LALALALA!!!

[jdsteel]

I am currently vacationing in the free State of Florida.

Last night, at the long drive thru line at McDonalds, there was “Help Wanted…signing bonus” signs outside and a small, overworked staff (including a manager taking orders) inside.

Don’t tell me there is no evidence hefty unemployment benefits aren’t to blame.

[HartleyMBaldwin]

You’re right about the masks. I wouldn’t mind a part-time job during retirement, and I can pass any drug test, not to mention show up on time and work hard every shift. But I won’t wear a stupid, useless mask (and I’m not planning to get vaccinated any time soon, either).

[Not_Who_U_Think]

Just speaking for myself, if my choice was to return to work and wear a mask all day, or collect anything close to the same wages by staying home, it would be an obvious choice for me.

I am sure that many workers in retail and other customer-facing positions feel the same way about masks. But you’re not hearing about it.

[Bernard]

Well, jobs were created. They just weren’t filled.

[rightwingintelligentsia]

I’ve enjoyed WFH this last year as well. Unfortunately, they’re making us all go back to the office next month. Really, there’s almost no reason that my job cannot be done remotely. But the Company laid out millions for a fancy building and they don’t want it going to waste.

[rockrr]

I retired in 2019 and planned to return to part time employment after a much needed decompress from a crappy job. I didn’t anticipate the insanity of ControlaVirus and am now waiting until the madness passes.

It’s looking like it may be a long wait...

[Jay W]

Democrats have never needed evidence. That is why it is so difficult to have a rational conversation with them about anything.

It really is freaky, like they’re possessed or psychotic.

[Thommas]

Well put.