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As I was watching the debate taking place inside the Republican Party and later between Republicans and Democrats in Congress over whether to extend the $600 federal unemployment weekly benefit set to expire on July 31, one thing struck me: We have forgotten why we did it in the first place.
Republicans were arguing the benefits were hampering the economic recovery because businesses couldn’t reopen as their would-be employees were making more money staying unemployed. Democrats were arguing the benefit needed to be extended while the coronavirus pandemic remains a part of life, since people are struggling amid high unemployment rates. Both arguments align with each party’s philosophies, but they miss the point: We want people to stay at home.
Unemployment traditionally is never meant to be a full substitute for salary and should be a lesser bridge to help workers and their families get by, until they find work again. The $600 extra was created specifically because we didn’t want people going out and looking for work, and certainly not entering the workforce. The bonus was created as part of the $2-trillion federal CARES Act, designed to help Americans and businesses navigate the self-induced economic shutdown, in an effort to get the surge in new COVID-19 cases under control. Keeping people at home was a big part of that plan.
But the effort to get the pandemic under control has failed. Nearly every day in July set a record nationally in the number of new cases, and we are once again nearing 2,000 daily deaths. As the economy reopened, cases surged as people and businesses had varying degrees of respect for social distancing and mask-wearing. A quick trip to a grocery store near my house reveals a significant portion of people who wear masks don’t know how to do so properly. (“Over the nose” is the new mantra in my house.) Even though Mass. hit its case peak months ago, the state is far from out of the woods. Since Gov. Charlie Baker’s economic reopening entered its third phase, new cases have been ticking up slightly.
If we are going to get to a full-throated reopening, we first must get the pandemic under control. To do this, we ideally need a comprehensive national testing, tracing and quarantining program to limit the virus’ spread. Since that is unlikely to happen any time this year, the best we can do is contain the pandemic through measures like limiting interactions among people. Let’s not take our eye off the ball.
– Brad Kane, editor
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Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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