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General Category => Economy/Business => Topic started by: mystery-ak on August 10, 2020, 05:34:08 pm

Title: Local spending to drop as much as 44% if unemployment boost expires: Study
Post by: mystery-ak on August 10, 2020, 05:34:08 pm

Local spending to drop as much as 44% if unemployment boost expires: Study
by Jay Heflin, Business Editor |
 | August 10, 2020 11:23 AM

The failure to extend the $600 weekly unemployment bonus payment that expired last month would lead to a 44% decline in local spending if it is not renewed, according to a study circulated Monday by the National Bureau of Economic Research.

The paper, which has not yet undergone peer review, also found that reducing the payment to $400 would lower spending by 12%, while cutting it to $200 would shrink spending by 28%.

“We find that higher replacement rates lead to significantly more consumer spending,” concludes the study, written by economists affiliated with six different universities.

The report’s findings come as Republicans and Democrats debate extending the benefit.

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https://www.washingtonexaminer.com/news/local-spending-to-drop-as-much-as-44-if-unemployment-boost-expires-study (https://www.washingtonexaminer.com/news/local-spending-to-drop-as-much-as-44-if-unemployment-boost-expires-study)