SHOULD EXTRA $600 CONTINUE?

Our panel weighs in on whether Congress should extend unemployment benefits beyond this month, when they expire.

ECONOMISTS NO

Applies a Band-aid to hemorrhaging wound. If unemployment benefits were provided from surplus government revenue saved for just such emergency, there are justifications. But continually spending nonexistent money has devastating lasting effects. Legal plundering and fabricating money from thin air while producing no goods or services is immensely inflationary. Not considering the consequences of unending massive deficit spending only temporarily and imaginarily extends the real inevitable compounding impacts soon to follow.

YES

Millions of Americans are still unemployed and are unlikely to return to work anytime soon. Not only will extending the benefits provide these individuals with the means to survive the pandemic, it will avert a collapse in spending that would dramatically slow the economic recovery. Ideally, rather than a set amount, the extra unemployment benefits beyond July would align with individuals’ lost income and vary by region according to the extent of business reopenings.

YES

It looks as if the reopening of the economy came too soon. Coronavirus cases are surging, and big parts of the economy may have to be shut down again. The negative impact on employment and income will hurt the economy by dampening spending. The extra money will help boost demand and allow people to pay their bills, including the rent and/or mortgage. Any worry about the payment being a disincentive is negated by the weak labor market that will likely last at least into 2021.

NO

We print money, further running up a record deficit, and increase the incentives to not work and somehow think this is good for the GDP? Extending unemployment is one thing or even the Paycheck Protection Program, but not bonus checks. Meanwhile, we terminate highly skilled foreign worker visas, mostly to tech firms, along with temp workers sought by farmers, making it even harder for them to produce anything or pick crops. I don’t get it, aside from short-term political motivations.

EXECUTIVES NO

It was a huge help to many people and infused billions of dollars into the economy quickly. But things have started turning around. Millions of people, unfortunately, are earning much more (many more than double) the amount of money they typically earn working. The $600, which now ends July 31 is $15 an hour on top of their normal unemployment check. It is time to wean workers off unemployment and encourage them to return to their jobs. If at all it should be lowered to $400 for August and September and then $200 for October and November.

NO

Unemployment benefits should not be structured in a way that disincentivizes working. The $600 supplement that put some beneficiaries over working wage lessened their enthusiasm for returning to lower paying jobs. Recognizing continued economic challenges from job loss, supplemental support through a more conditioned stimulus issuance might be a better path. Rejecting work should be a disqualifier. The unintended consequence resulting from the extra benefit indicates more focus is needed on livable wage policy.

YES

In our situation, the biggest problem is reduced demand for goods and services. There will not be enough jobs to return to until there is more demand for the things they provide. Unemployment benefits become rent and groceries. Unemployment checks are mostly spent back into the economy, thereby creating the demand we need. Ultimately, the extension of unemployment benefits should be based on macroeconomic recovery metrics, not arbitrary time frames.

YES

An abrupt end to the expanded benefit would be catastrophic to both the unemployed and to an economy that is on a federally funded life support of monetary and fiscal policy. However, while vital, these programs are not sustainable for the long term. Congress must focus its efforts on initiatives to contain the pandemic, treat the afflicted and develop an effective vaccine for the SARS-COV-2 virus, which is the underlying cause of our economic and personal suffering.

MARK FELIX AFP VIA GETTY IMAGES Thousands of unemployed Americans have received an extra $600 in benefits from the federal CARES Act. That benefit is set to expire at the end of July. Josh Bivens of the Economic Policy Institute argues the benefit must continue and points to it boosting GDP. Many Americans are earning more on unemployment than if they are working, leading some in the Republican-controlled Senate to not want to extend the $600 benefit, or at least lower the amount. Above, a bar owner changes the marquee in Houston at the end of last month.

Reginald Jones Jacobs Center for Neighborhood Innovation

Kelly Cunningham San Diego Institute for Economic Research

Norm Miller University of San Diego

Alan Gin University of San Diego

David Ely San Diego State University

Austin Neudecker Weave Growth

Chris Van Gorder Scripps Health

Phil Blair Manpower