Question

Do you think that the $600 per week EXTRA in UI benefits is overly generous? Why or why not? Should the $600 per week in EXTRA unemployment benefits be reinstated for the tens of millions of people who had a job in Jan. 2020 but do not have a job now? Why or why not?

Answer 1

Answer 1)

The U.S. Division of Labor's unemployment insurance programs give unemployment advantages to eligible workers who become jobless through no shortcoming of their own and meet certain other eligibility necessities. Unemployment protection is a joint state-government program that gives money advantages to eligible laborers. The USA is the most noticeably worst COVID-19 affective country around the world. Around 2 lacs individuals have passed on and in excess of 6 million individuals are corona positive.

USA has likewise face lockdown because of Corona infection. Because of this pandemic the US economy is confronting a major financial destruction after 2008-09 emergency. The economy has contracted 34% (around) in last quarter, unemployment rate is 8% and inflation is close around zero or can say the US is confronting the issue of deflation. The Covid emergency has cost some 36.5 million American jobs in two months with specialists notice that figures could top over the Great Depression in 1933. As indicated by new traditional model or AD-AS model the diminishing of AD is the primary explanation of monetary downturn.

Factors that directly affects the aggregate demand: Consumption, investment, government expenditure and net exports. Any increase in the above factor will lead to increase the output level and price level and vice-versa.As per the financial analyst during the monetary downturn, expansionary monetary approach or expanding government spending help to the economy and help in economy recuperation quick. At the point when the economy getting fall or get into the downturn then it contrarily influence the confidence level of buyers and financial specialists (producers) that adversely influence AD. However, when there is an increase in the government expenditure and transfer payments through government backed social security schemes like unemployment benefits then then as a result this will build the income level of individuals and it likewise increment their spendable income which increases the consumption level. Thus, I think its a decent step and a demand of time and the administration should expand it if the circumstance getting all the more most exceedingly worst.