Kudlow Suggests a Return to Work Bonus
Economic Advisor Larry Kudlow says unemployment benefits are dissuading people from returning to work.
Kudlow wants the U.S. to stop providing the added $600-a-week to unemployment benefits and to instead have a bonus for when workers return to work. "We're paying people not to work. It's better than their salaries would get…The jobs are coming back and we don't want to interfere with that process," Kudlow told CNN.
The current increase in unemployment benefits expire in July. "Lawmakers are expected to debate another round of legislation responding to the economic fallout from the pandemic in the coming weeks. Democrats want to extend funding for the enhanced unemployment payments," the Wall Street Journal Reports.
"Unemployment benefits are administered and paid out by states, but the federal government is funding the $600 benefit boost as part of emergency legislation adopted to respond to the coronavirus." Larry Kudlow confirmed that he did not want to remove unemployment benefits entirely.
Mr. Kudlow said that White House was considering "a reform measure that will still provide some kind of bonus for returning to work."