Living wage is 58k in Mississippi to 96k in New York

Silver2021

Living wage is 58k in Mississippi to 96k in New York.

The question is why should someone making poverty wages under 44k get 50k to 60k in unemployment benefits while staying at home doing nothing?

Because this recovery is going to be a bottoms up recover....from consumers to business and not trickle down recovery from businesses to consumers!

Remember most Americans moved from the middle class to poverty when the US moved living wage jobs staring with NAFTA in 2000 to China and Mexico. This over the last 20 years have hollowed out the middle class 58k to 96k jobs and replaced them with service or servant jobs like Amazon paying under 44k.

The result that most Americans live pay Pay check to pay check with less than $500 in savings for a rainy day.

So to shore up saving and increase spending during a pandemic were many are fearful for their lives, the goverment have decided to pay these workers a temporarily a living wage during the pandemic.

Now I understand that many will then prefer to protect themselves and not go to work making bank, but they will have a few thousands extra when things get better, they might go out and shore up the economy from the bottoms up.

If they are forced to go back making minimum wage, sure business will get their labor but the low incomes jobs might not support a rise in consumer spending to levels that would rejuvenate the economy substantially.

The economy was heading towards a recession anyway in January 2020 as the accelerating cost of living with rising rents and medical costs was eating a bigger portion of low wages leaving less and less for discretionary consumer spending.

Thus now the goverment have to choose to continue on the path of austerity which means this recession could turn into a depression and the recovery would be mute or non existence for a few years, or pay up with free covid 19 testing and contact tracing so maybe these workers would feel comfortable to spend the extra money.

Without that, they can force
people to go back to work paying them minimum wage, but that in my opinion is not going to bring back robust consumer demand in the middle the worst human and economic calamity in over 100 years.

If republicans don't do that, the stock market eventually will price in a steeper recession or worse a depression, hitting them in their pocket books were it hurts and forcing them to do what they did in April.

Let's see what happens next.

Comments (3)
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Silver2021
Silver2021

Next U.S. coronavirus rescue package not too far off, McConnell says...lol

Herkie
Herkie

"So to shore up saving and increase spending during a pandemic were many are fearful for their lives, the goverment have decided to pay these workers a temporarily a living wage during the pandemic."

If this was the motive for the extremely generous UI benefit then please explain to me why the government feels it is an appropriate income level to make disabled vets live on $36 thousand per year? When will we be able to get far enough ahead of the cost of living to save up for bad times like these?

The running thread through all your comment is dollar/value levels and how labor is being cut out of it. But, might I suggest that the real focus should be on the INFLATION that has boosted the median household income to over $61k below which you are going to struggle or fail.

If the government wants to shore up the overall economy by simply flogging the unemployed with vast amounts of cash then why not a lower but more widespread (fairer) UBI for the duration? Since giving it to a few and expecting them to be the locomotive that pulls the entire economic train of consumer spending is basically how we got into this economic mess, allowing the top 10% and espeicially 1% to capture all new national income and then some. What they are doing now with the 24 carat UI benefit is simply creating another gilded class that will be financially secure at the expense of all those that are not lucky enough to be included. Yet it is the same locked out people that are going to have to cope with the new higher prices and rationed goods and services.

When goods and services shut down as with Covid, and only slowly reopen at greatly reduced capacity, it will be seen that demand is returning before business to meet that demand. That means the goods and services are either going to first come first served (and long waits) ot to he willing to pay the most. By the time these platinum benefits end these people will have collected six months worth of checks and had no place to spend it all. People like me will be outbid. I am already seeing that. If the benefits are extended till January I might as well put my house on the market now. I will not be able to afford to live in it.

Fixed income older Americans, the ones with the highest death rate in Covid, are also now going to experience something in the region of a 40% decline in purchasing power of their incomes. And it might well not stop there.

Silver2021
Silver2021

I Agree that veterans have been neglected with many are sick and homeless without goverment help. Goverment are ready to go to war but don't want to deal with the long term consequences of the damage they do to veterans.

I see were you are coming from and for the pain this is causing you.

That's were universal basic income might be the way to go for veterans.

What do you think?


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