DONALD Trump is considering offering a $450 weekly bonus the encourage people back to work. It comes as nearly 39million Americans have lost their jobs due to the coronavirus pandemic. ⚠️ Read our coronavirus live blog for the latest news & updates White House economic adviser Larry Kudlow said yesterday the Trump administration is considering […]
DONALD Trump is considering offering a $450 weekly bonus the encourage people back to work.
It comes as nearly 39million Americans have lost their jobs due to the coronavirus pandemic.
Read our coronavirus live blog for the latest news & updates
White House economic adviser Larry Kudlow said yesterday the Trump administration is considering rolling out a bonus scheme.
It is aimed at encouraging people back to their jobs as some workers may think they are better off on the $600 unemployment payments introduced in the coronavirus stimulus package.
The bonus was first proposed by Ohio senator Rob Portman – and it is understood any such scheme would expire at the end of July.
American unemployment is at its highest since records began as businesses closed across the country due to the outbreak
Speaking on Fox News, Mr Kudlow said: “It may well be, it’s something that we’re looking at carefully.
“Senator Portman has a good idea. He understands incentives and disincentives.
“The trouble with the $600 plus-up, and maybe we needed it in that emergency period, but frankly it’s a major disincentive to go back to work and we don’t want that.
“We want people to go back to work.”
He added it is unlikely the current unemployment benefits will survive into the next round of coronavirus legislation.
A study published this month by the University of Chicago showed two thirds of workers who lost their jobs are eligible for unemployment that exceeds their lost wages.
Democrats are pushing for the unemployment payments to continue, but Republicans fear the cost is too high and is actively encouraging people to stay home.
The bonus scheme has been gaining momentum as Congress remains deadlocked over the next coronavirus relief bill.
Americans last month received $1,200 stimulus checks from the government as part of Trump’s $2.2trillion rescue package.
It was designed to prevent the economy going into free-fall as businesses were forced to closed their doors.
The US continues to have the highest case count and death toll in the world, with 1.7million infections and 100,572 fatalities.
President Trump has been keen to get the US moving again – with the economy shrinking by 4.8 per cent in the first quarter, the worst since the recession in 2008.
Republicans are hopeful that as the US continues to reopen the economy will improve and they can wean people off federal support.
Encouraging people back to work is key, as if workers refuse to return businesses cannot get going again.
Democrats have argued that Congress needs to approve more aid now to help people through into 2021.
President Trump’s senior economic adviser Kevin Hassett warned on CNN that unemployment figures for May could be “north of 20 per cent” – and said he expected it to be higher again in June.
Mr Hassett said the figures could remain in double digits until November, but was hopeful recovery will begin over the summer.
He added: “This was the biggest negative shock ever, but we also had the biggest policy response ever.”
