One of Joe Biden’s first acts after moving into the White House was to extend federal benefits for unemployment.
Republicans fought this measure tooth-and-nail, claiming it was time for people to go back to work and that the only thing keeping them on their couches was the Biden bonus money.
New data proves that claim to be true, as states that have ended the unemployment bonuses are seeing declining unemployment numbers that far exceed states that still have the benefits in place.
Pay Them More
Make no mistake about it, the unemployment bonus put in play by Democrats did have a secondary purpose.
By paying people more money to sit on their couches, Democrats were hoping to drive wages up.
Joe Biden said it himself when asked about it, telling small business owners to “pay people more” money if you want them to come back to work.
This coming from a man that has never run a business and has no idea what doubling wages overnight can do to a small business owner.
The Data Proves It
Jobs reports during the Biden term have only started to improve with the June report, and that was because roughly two dozen states have or will end the added bonuses.
If that had not happened, Biden would have likely seen another horrible report in June.
States halting the bonus money saw a 33 percent drop in new jobless claims in June.
Compare that to the mere four percent drop in states that did not halt the programs and you can see how much of an impact that bonus cash is having on people staying on their couches for as long as possible.
One state that halted the program was Mississippi, after its Republican governor, Tate Reeves, saw a rather disturbing trend.
Reeves stated, “I continued to see increases in the number of unemployed and, in some weeks, increases in the new regular claims that were coming in.
“So, I felt we had to make a decision because if we wanted to experience a full economic recovery, we had to get our people back to work.”
Casey Mulligan, former White House Council of Economic Advisers chief economist and a University of Chicago economics professor, broke it all down quite simply.
He stated, “If you pay for something, you’re going to get more of it.
“If you pay for unemployment, you’ll get more unemployment.
“There are really no surprises in what’s happening here.
“I know the Biden people act surprised, but this is something we predicted as a quantitative matter and all the different patterns were known and predicted over a year ago.”
There are only two possible conclusions here…
First, either Biden and his economic advisers were just flat-out wrong,
Or, they purposely tried to drive wages by extending this program when it was clearly no longer needed.
Either way, it is yet another black mark on Biden’s record as the White Hosue occupant.
Source: Daily Caller