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?

- Millions of people who lose their jobs in America also lose their health insurance. Should this be changed? If so, how? Is access to medical care a right? Should it be? Why or why not?

Answer 1

Hi,

Hope you are doing well!

Question:

Answer:

The U.S. Department of Labor's unemployment insurance programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own and meet certain other eligibility requirements. Unemployment insurance is a joint state-federal program that provides cash benefits to eligible workers. The USA is the worst COVID-19 affective nation worldwide. More than 2 lacs people have died and more than 6 million people are corona positive. USA has also face lockdown due to Corona virus. Due to this pandemic the US economy is facing a big economic downfall after 2008-09 crisis. The economy has shrunk 34% (around) in last quater, unemployment rate is 8% and inflation is near about zero or can say the US is facing the problem of deflation. The coronavirus crisis has cost some 36.5 million American jobs in two months with experts warning that figures could peak above the Great Depression in 1933. According to new classical model or AD-AS model the decreasing of AD is the main reason of economic recession. AD is directly affected by the following factors- consumption, investment, government spending and net export. When these factors increase its increase AD and vice-versa. When AD decrease its decrease output and price level. Decreasing price level decrease production and decreasing production increase unemployment and decrease income level. Decreasing income level further decrease AD. In AD cosumption play an important role and constribute for more than 61%. When the economy getting fall or get inter into the recession then its negatively affect the confidence level of cinsumers and investors (producers) that negatively affect AD. But when the government increase spending and transfer payment through social security scheme like unemployment benefits then its increase income level of people and its increase their spendable income that incraese consumption level. When consumption increase its increase AD and when AD incraese its increase production and price level. increase price level increase production level that decraese unemployment and increase income that increase AD further and boost economic growth. According to the economist during the economic recession expansionary fiscal policy or increasing government spending help to the economy and help in economy recovery fast. So, i think its a good step and a demand of time and the government should increase it if the situation getting more worst.

During this pandemic millions of people who lose their jobs in America also lose their health insurance that is not a good signal for the economy. We know this time the US is facing a pandemic that hit the US economy and citizens worst and the highest number of people have lost their lives and Corona positive. Other side the US healtcare facility is very costly or can say the highest in the world. Other side people have lost their job and the income level has decreased rapidly. So, in case of any mishapning people face a deep financial trouble. Other side it will affect their spendable income. The US economy has shrunk 34% in the last quater and it will damage more. The government should increase spending on helthcare facility and increasing the number of beds in public hospitals. Other side the government should try that the insured people keep continue their existing policy. The US is a welfare state and to provide supperior and strong heathcare facility is the responsibility of the US government and to get a better healthcare facility is also the right of the citizens of this country. The US government spend highest on healthcare facility in the world but this time its not sufficient due to this pandemic nad increasing cost. So the government should design a special policy to take the health of the citizen and work in the way of maximizing social welfare.

Thank You