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This is a common mindset when individuals make more money through government assistance than they would at work. This is what’s occurring as the government’s efforts to help people deal with the coronavirus leave many with more money a week than what they made before the pandemic.<\/p>\n
Businesses across the country are left with a shortage of people applying for jobs with them. One McDonald’s franchise offered people $50.00 for coming in to do an interview. However, they fell short of the responses they needed to fill job positions.<\/p>\n
From The Washington Examiner:<\/span><\/p>\n Under the status quo, the federal government is supplementing existing state-level benefits with an extra $300 per week until September. This means that nearly 40% of workers can earn more from staying on the welfare rolls than from returning to work. Many others can earn 70%, 80%, or 90% of what they were making.<\/p>\n In Massachusetts, for example, one can earn up to $1,100 a week on unemployment benefits under the current system. That’s far more than the $600 a week one would make working a $15\/hour job. Is it any wonder so many employers are struggling to hire?<\/p>\n One of the most basic lessons of economics is that human behavior responds to incentives. We know that when the government places a tax on cigarette sales, for example, people smoke less. Similarly, when the government subsidizes higher education, more people will go to college.<\/p>\n What did lawmakers expect would happen when we subsidized unemployment and disincentivized working?<\/p><\/blockquote>\n