The entourage of US President Donald trump is preparing to stop payments to the unemployed, appointed against the backdrop of the coronavirus epidemic and the collapse of the economy. This was stated by White House Economic Advisor Larry Cadlow, writes the Financial Times.
According to him, the administration decided to refuse benefits already in August, as the economy is recovering, and by that time there will be enough jobs.
Kadlow did not rule out that some kind of bonus would be paid upon returning to work, but it would be less than the current benefits, which amount to $ 600 per week.
The package of measures adopted to support the economy in March provided for such payments once a week, and the Congress, controlled by the Democrats, sought to extend their term until the end of the year. However, the Senate refused to consider the relevant bill.
Currently, according to the US Department of Labor, 21 million people are left without work. In May, 2.5 million jobs recovered, and the overall unemployment rate fell to 13.3 percent. However, as Robert Kaplan, head of the Federal Reserve Bank (DFB) of Dallas, pointed out, unemployment among the black US population in May fell to only 16.8 percent.
Meanwhile, the authors of the Bloomberg Economics study concluded that the current high values of the indicator may persist for a long time. To cope with the problem, the authorities will have to develop a more flexible approach to supporting the economy.