Clock Just Ran Out on $600 in Weekly Unemployment Benefits

As noted earlier today the Clock Just Ran Out on $600 in Weekly Unemployment Benefits while Republicans debated alligator sausage, literally. 

Moments ago, the Republicans finally reached a decision internally, but it's one that will not fly with Democrats.

GOP to Propose Aid Bill With Extra Jobless Benefits Set to Expire

Wall Street Journal reports GOP to Propose Aid Bill With Extra Jobless Benefits Set to Expire.

After days of disagreements between the White House and GOP lawmakers, Republicans are set to release their proposal for the next coronavirus relief bill on Monday with millions of Americans on the verge of losing expanded unemployment benefits.  

Lawmakers now have little time before the $600 weekly supplement to jobless benefits ends. In negotiations with Democrats, three months before the election, an agreement on unemployment insurance might prove to be the most difficult to reach.

Benefits Have Already Expired

I do not understand such comments. Benefits ended today.

The last full week in July ends Saturday July 25 for most state UI programs. And that is when the benefits expire, not July 31.

Republican Proposal Details

  1. Eliminate the $600 weekly benefit and replace that with a means test to rejigger benefits so that they replace roughly 70% of a worker’s former wages.
  2. Another round of direct $1,200 payments to would be sent to the same group of Americans as the last round—$1,200 to individuals with adjusted gross incomes below $75,000 and married couples making less than $150,000. Payments would be gradually reduced for incomes above those levels before they are phased out entirely. 
  3. $100 billion in aid to schools and universities and additional money for coronavirus testing.
  4. State and local governments would get no additional aid, but more freedom on how to spend previous money.
  5. The Republican bill would make it harder to successfully sue businesses, schools and health-care providers in coronavirus-related cases.
  6. Estimated total cost of about $1 trillion

Cap Assistance

“It’s going to cap the assistance at a level that is consistent with people going back to work,” Larry Kudlow, the top White House economic adviser, said of the Republican proposal on CNN’s “State of the Union” on Sunday.

Bickering Might Last Weeks

Democrats will be incensed by points 1 and 5.

Deal Unlikely or Impossible Before Benefits Expire?

Bipartisan negotiations—which Senate Majority Leader Mitch McConnell (R., Ky.) has said he expects to take at least a few weeks—are unlikely to yield an agreement before the supplement jobless benefit ends.

Again, I truly do not understand such comments. 

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Benefits just expired. 

Unless a deal is worked out this week and made retroactive, there will be missed checks. 

What If?

White House chief of staff Mark Meadows suggested on ABC’s “This Week” that Republicans might try to pass a smaller package, which would include extended unemployment insurance, and then “negotiate on the rest of the bill in the weeks to come.” Democrats have rejected that approach.

Didn't the Republicans just reject that approach as well? 

We find out Monday. Trump could change his mind overnight 

Advantage Democrats

Because of Republican delays, Democrats can hold out for more and blame Republicans for all of it. 

Under this scenario, they would agree to a deal after a couple of weeks, then blame Trump and the Republican Senators for the difference between $600 and the 70% replacement.

Philosophically Speaking

Philosophically, people should not make more being unemployed than employed.

Politically speaking, the Republicans just stepped on a landmine.

Democrats Favored to Win the Senate

Earlier today I commented, Democrats Favored to Win the Senate.

This update will not help the Republican cause. Please click on the above link for details.

Trump Will Lose to Biden

For analysis of why Trump will lose to Biden, please see Only 13 Percent of Voters are Still Undecided

Republican bickering can easily turn things into a Democrat tidal wave.

Mish