Cut Unemployment Benefits and Boom, Magic Fairy Dust

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So, we are about to see something truly incredible: 2 ideologies battling it out in real time with a clear winner in the end. Who will it be? Only time will tell. What am I talking about? Enhanced unemployment benefits will be cancelled in some states and the prevailing wisdom says when that happens, people who have been opting out of the workforce will return in droves. (If you remember, I talked about this before.) As a hint of what could happen, check out this quote from The Daily Caller.

A businessman who owns two restaurants – one in Florida and one in New York – said business is booming in the sunshine state after the state brought back the job search requirement for people receiving unemployment benefits while on Fox & Friends Wednesday morning.

“It’s just like that, magic fairy dust,” Buddy Foy Jr., owner of Chateau by the Lake, said. “Now you have to look for a job, the waiver is being removed for that search requirement for unemployment. And in the last 5 days, literally everyday it’s building to more and more.”

“We got zero phone calls in five months for jobs, we filled our jobs through referral, Steve, through our current employees. And in the last 5 days, our staff is saying ‘I can’t keep answering the phone, we have to serve customers’.”

Meanwhile his NYC location is struggling to find workers because enhanced benefits are still in play. Click here to watch the full video interview.

So, will this scenario play out nationwide? Quite possibly. As of now, only 18 states are opting out of enhanced federal unemployment benefit programs while the rest are not. Here is a list of the ones that are.

Alabama: Governor Kay Ivey announced that Alabama will end participation in all enhanced federal unemployment benefits on June 19, 2021.

Arizona: Governor Doug Ducey announced that Arizona will cease participation in enhanced federal unemployment benefits on July 10, 2021. Governor Ducey also announced a plan to offer eligible full-time workers a $2,000 “back to work” bonus to get “as many Arizonans as possible to rejoin the workforce by September 6, 2021.” The order also provides a smaller bonus for part-time work and provides child care support, educational opportunities and rental assistance to entice Arizonians to return to the workforce.

Arkansas: Governor Asa Hutchinson has announced that the state will cease all enhanced federal jobless benefits effective June 26, 2021. Governor Hutchinson made the announcement in a letter to the Arkansas Division of Workforce Services.

Georgia: Governor Brian Kemp announced that Georgia will cease participation in federal pandemic unemployment programs on June 26, 2020.

Idaho: Governor Brad Little has announced that effective June 19, 2021, Idaho will end its participation in enhanced federal unemployment benefit programs.

Iowa: Governor Kim Reynolds announced that Iowa will end participation in federal pandemic related unemployment on June 12, 2021.

Mississippi: Governor Tate Reeves announced via social media that he has directed the Mississippi Department of Employment Security to cease participation in the enhanced federal unemployment benefit programs on June 12, 2021.

Missouri: Governor Mike Parson announced that Missouri will cease participation in all federal pandemic-related unemployment benefits on June 12, 2021.

Montana: Governor Greg Gianforte will cease all enhanced federal unemployment benefits on June 27, 2021. Governor Gianforte also announced a plan to offer unemployed workers a one-time $1,200 “return-to-work bonus” to the first 12,500 Montanans with active unemployment claims as of May 4, 2021, who

  • discontinue receiving unemployment benefits;
  • accept an offer of employment in the state of Montana; and
  • complete at least four full weeks of paid employment.

North Dakota: Governor Doug Burgum announced that effective June 19, 2021, the state will opt out of the federally funded enhanced unemployment programs.

Ohio Governor Mike DeWine announced that effective June 26, 2021, the state will opt out of the federally funded enhanced unemployment programs.

South Carolina: Governor Henry McMaster will cease participation in all six enhanced federal unemployment benefit programs on June 30, 2021.

South Dakota: Governor Kristi Noem announced that effective June 26, 2021, South Dakota will end its participation in federal pandemic-related unemployment assistance programs.

Tennessee: Governor Bill Lee gave notice to the DOL that the state intends to end participation in all federally funded pandemic unemployment compensation programs, effective July 3, 2021.

Utah: Governor Spencer Cox announced that Utah will opt out of all enhanced federal unemployment benefit programs, effective June 26, 2021.

Wyoming: Governor Mark Gordon will withdraw Wyoming from participation in federal pandemic-related unemployment programs on June 19, 2021.

Let us all mark our calendars for one year, no, 6 months… no, 3 months after all of the states listed above have opted out of the enhanced federal unemployment benefit programs. If more people are looking for work than they did prior to the benefits being cut off, it will prove that if you pay people so much money in benefits then they will not seek work. Likewise, if you put a time limit on the benefits then, they will seek work. And yes, there will be arguments to the contrary; of this I am sure. But at the end of the day, the results will speak for themselves.

That’s it for today. More tomorrow. 😉

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