The lost wage assistance program could be difficult to implement as it excludes workers with the lowest wages
The FBI reported that unemployment insurance fraud increased during the pandemic.
Photo: ERIC BARADAT / . / .
Under the executive order that President Donald Trump signed on Saturday to provide $ 400 in unemployment benefits per week, it will be insufficient to face the economic crisis triggered by the coronavirus pandemic, a group of economists and unemployment experts warn.
Among the four executive orders signed by President Trump before the failure of the negotiations in Congress to extend financial aid, the new order will allow to extend weekly unemployment benefits but now at a reduced rate of $ 400.
The benefit seeks to replace the $ 600 dollars that ended on July 31 that were given to unemployed Americans as additional help, in addition to the unemployment payment that the states provide. Under the new order, the federal government would cover $ 300 per week and the states would be responsible for contributing the remaining $ 100.
Economists and unemployment experts have mentioned that the lost wage assistance program would be difficult to implement in a timely manner as it excludes some of the lower paid workers who need the help. The order could also face a legal challenge on whether the president has the authority to enact the program.
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Under the new order, this is how the extension of unemployment insurance:
Under the CARES Act signed in March, anyone who receives unemployment benefits was entitled to receive the increase of $ 600 per week. Under the new executive order, beneficiaries must receive at least $ 100 state unemployment assistance to qualify for the $ 400 federal increase. However, the new order could leave out lower income people, especially to people who depend on tips or living off a part-time job.
An estimate of Eliza Forsythe, a labor economist and adjunct professor at the University of Illinois, Urbana-Champaign, points out on her Twitter account that only 6% of regular unemployment insurance beneficiaries earn less than $ 100 in state benefits. In this way the lack of income and support for. Part of the government would continue among the people with the lowest income.
The White House told The Washington Post that the $ 100 dollars per week it would be the minimum resources per week to qualify for unemployment benefits and a way to curb fraud. According to the FBI, unemployment insurance fraud increased during the last months that were related to the Identity Theft.
Related: $ 600 a week for unemployment drops as much as $ 5 in some states as workers wait for a new relief plan.
Under the CARES Act, people who are self-employed and those who are dedicated to the entertainment industry had the right to receive benefits for a minimum of half the average unemployment benefits in their states. It is likely that many beneficiaries of Pandemic Unemployment Assistance will be able to reach the initial payment of $ 100 dollars in order to get an additional increase of $ 400 dollars per week.
The people who receive the extended support of 13 weeks under the Emergency Pandemic Unemployment Compensation also could qualify for the federal raiseas long as they are receiving at least $ 100 in state aid.
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