Larry Kudlow Argues Enhanced Unemployment Benefits Is a ‘Disincentive to Go Back to Work’
White House Economic Adviser Larry Kudlow is suggesting the $600 federal weekly enhanced unemployment benefits may be discouraging Americans from going back to work amid the coronavirus outbreak. CNN’s Poppy Harlow…
White House Economic Adviser Larry Kudlow is suggesting the $600 federal weekly enhanced unemployment benefits may be discouraging Americans from going back to work amid the Coronavirus Outbreak.
CNN’s Poppy Harlow asked Kudlow if President Donald Trump believes unemployed Americans need the enhanced benefits and if Kudlow still believes it is a disincentive to go back to work.
“Well, I think it is a disincentive to go back to work. We would, if we could, move it down very slowly and step by step. That’s something that we’ve all said publicly,” Kudlow said.
He added, “That’s something in the negotiations. Whether he has executive authority to change that… remains to be seen. Some of the lawyers think he does.”
Watch his comments below:
Harlow went on to question Kudlow about why he believes it is a disincentive to return to the workplace and what evidence he has to back his claim.
Kudlow cited a study from the University of Chicago, claiming two-thirds of Americans now have higher unemployment benefits than their wage.
Harlow challenged Kudlow arguing the study does not conclude what Kudlow is claiming.
He fired back noting there has never been a situation in prior economic downturns where unemployment benefits significantly exceeded wages.
Kudlow indicated states will continue with their unemployment benefits and believes Republicans can provide incentives to go back to work.
He listed the ways Republicans want to reward Americans for going back to work including a retention credit, re-employment bonus, and a payroll tax cut.
Kudlow said Friday the legal drafting of an executive order suspending the payroll tax was nearly completed. He believes Trump will sign it.
Kudlow told Harlow that Republicans are not trying to take away benefits, they are trying to create more incentives to go back to work.
“We are not trying to eliminate the federal benefits. What we’re trying to do is moderate them and reform them and put in the package, as I said, benefits and incentives to come back to work. That’s what we really want to do,” Kudlow said.
Democrat and Republican lawmakers continue to struggle to reach an agreement on the next relief package, following the enhanced unemployment benefits expiration on July 31.