Business

Small business owners in the US endorse $600 a week profit

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Small business owners in the US endorse $600 a week profit

Around 30 million unemployed Americans are now on tenterhooks waiting to see how to replace the $600-a-week temporary unemployment aid provided by the Cares Act. The House and the Senate remain well apart on a solution as the constitutional controversy over its usefulness and purpose persists. What should not be left out of the conversation is an unlikely, but multiple, community of people who support the additional benefit: small business owners.

This is a complex problem.

Those I know in the corporate world have dealt with the extra government $600 bill. They argue that a huge number of their workers — especially hourly and part-time workers — have stopped returning to the workforce because the offer gives them more money than they used to work which just allows them to stop working.

Are Small business owners in a difficult position?

Yet several experiments – such as this one by a group of scholars at Yale University. They have shown the reverse to be valid. The report found “no evidence” that employees earning the extra federal unemployment insurance were prevented from working. And that “people with more favorably extended compensation have resumed working. At a rate comparable to or marginally faster than others.”

Nonetheless, as the Wall Street Journal pointed out. The report omitted part-time staff and other “short-term jobs” who made up the vast majority of employees. They’re who benefited more from the federal lift. “Today, a Louisiana worker who made $2,400 from part-time jobs. All last year would collect $2,516 a month in unemployment benefits. About $29 a week from the state plus $600. An ordinary worker in Ohio who had earned $17 an hour ($680 a year) was willing to collect $940 a year with the federal increase.”

The controversy continues.

Nevertheless, other small business owners also believe that the rewards will continue. Why? For what? Especially at a period when their businesses were unable to pay salaries. Due to the self-inflicted economic crisis of the country, it has provided a safety net for their workers.

 

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