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Unemployment benefits: California EDD mistakenly pays workers who still have jobs

Hi everyone! This is Dr. Nitin Chhoda
and welcome to this important episode of Ignition Time, where I talk to you about
what economists are saying. Economists are saying that continued unemployment
boosts, continued unemployment benefits will be more valuable, more
important in helping the economy recover then stimulus checks. Yes, you heard that
right. I'm going to cover THREE things in this video. The first is – why I'm
personally in favor of this idea. Number 2, exactly what the economists are
saying and I do believe there are times like these where the politicians should
listen to the economists because normally they just tend to disregard the
economists. Says you know these geeks and these nerds who just work on computers
and work on numbers. I think the politicians should listen to the
economists. And number 3, I'll give you some surprising new information about
the impact of unemployment benefits on the general population. I'll give you
some data that's actually going to surprise you. So make sure you stick
around till the end of the video. Now if you're an existing subscriber, welcome. If
you are a new subscriber, please consider subscribing below and please enable
notification so you get instant updates from me going forward. And if you learn
something new from this video I would really appreciate it if you click the
like button because a lot of research goes into the planning, the execution, the
editing and the launching of these videos. So with that being said let's go
ahead and get started. While I personally in favor of continued unemployment boost
to those who need it the most as opposed to just one-time stimulus checks. One of
the reasons for my financial success is that I didn't have to worry about the
consistency of income. In my case, if you look at my homepage video, if you look at
my background I've got businesses, I've got rental properties that bring in
consistent revenue. So for me I personally don't have to worry about
whether money is going to come in or not even in the middle of an economic crisis.
Now I know that not everyone has that luxury but what do we have? What
does the average low wage earner and the middle income earner have? They have
their jobs which by the way don't exist right now because millions of Americans
specifically the low wage earners and the middle income earners have lost
their jobs and number 2, the consistency of income in a situation
like this comes from unemployment benefits. So my point is when an
individual knows they consistent income coming in, not a
one-time stimulus check but consistent income whether it's through your job
whether you know if you lost your job then you know that's gone and whether
it's through unemployment benefits. If you do have unemployment benefits that
are continuously paying you then you are able to escape what I call the cycle of
poverty. You are able to now start to make better decisions, just able to start
to make more responsible decisions. Will there be some individuals who you know
take the money and play video games or waste the money or do things they're not
supposed to do. Absolutely, there's waste, there's fraud in every system but I'm
talking about the 99% of individuals who will be helped with consistent
unemployment benefits and a consistent unemployment boost and not just a
one-time stimulus check. Remember, this study was about unemployment boosters
doing more than stimulus checks. It wasn't about you know unemployment
booster should happen in stimulus check should not happen. This was a comparison
and this was data from economists so there you go I've given you my personal
opinion on what I think should happen because again consistent income releases
the pressure releases the cloud of uncertainty allows you to breathe easy
allows you to make decisions that are in your best interests hopefully in the
interests of those around you it prevents you from doing things that
could be potentially risky that could be potentially harmful for you so there you
go now let's listen to what economists had to say because some economists had
some pretty interesting things to say so I'll link to this article in the
description below and I'll also show you the article on the screen economists
estimate that a new 1.5 trillion dollar pandemic relief package will be needed
to stabilize the US economy with the most critical aspect of the funding that
should be allocated towards continued enhanced unemployment and food
assistance benefits the basics food assistance benefit now the $600 federal
booster has been estimated to have kept 10 million Americans out of poverty but
as you know the $600 federal booster scheduled to expire at the end of July
now Moody's Analytics chief economist Mark Zandi
and Howard economics professor Raj Chetty said at a briefing
with the Center on Budget and Policy Priorities this week that's spending on
enhanced Supplemental Nutrition Assistance Program or also known as a
snap program in addition to increase unemployment assistance will provide the
most meaningful boost to the u.s. GDP with a one-year perspective so in short
in the next one year if unemployment benefits are boosted is the $600 booster
continues and if there's more funding towards these nutritional assistance
program then have the economy get back on track that will help more and more
individuals and also there's no question that the house and the Senate need to
see eye-to-eye and need to do something quickly in order to come up with the
solution for extended unemployment benefits we know the position of the
Senate we know the position of the house but there was one encouraging sign which
is that the Speaker of the House Nancy Pelosi recently said she was interviewed
on CNN's State of the Union and she specifically said we have to find a
compromise because we must extend it that's what Nancy Pelosi Speaker of the
House said on CNN's State of the Union and she was specifically talking about
extending the $600 a week federal boost so she was talking about the extension
of unemployment benefits that are due to expire at the end of July at the time
I'm making this video now as you know the Republicans want her back to work
bonus want individuals to get back to work and the Democrats want to extend
unemployment benefits have covered that elsewhere on my channel so I'm not going
to repeat that over here but before I get into some surprising information
about unemployment benefits that you probably weren't aware of
in fact when I read this I was pretty surprised myself and by the way that's
what I believe makes a strong case for continued unemployment boosts as opposed
to a stimulus check so I have a question for you for all of my subscribers for
all of my viewers what do you think is a better option do you think extended
unemployment benefits specifically the $600 a week federal booster will be more
valuable than a stimulus check or do you think a stimulus check will be more
valuable than the $600 a week extension for the for the federal booster for the
unemployment benefits which do you think will actually help individuals more I'd
love to hear what you have to say so click below click the comments section
below and please tell me what you think I'd
love to hear from you I'd love to engage in a healthy debate and I want to know
what you think I personally believe that the sick
hundred dollar federal booster if it is extended in some way shape or form
specifically to individuals who need it the most
that's what makes more sense to me but I'd love to again hear from you and see
what you have to say so please sound off in the comments section below now I'm
going to give you a few pieces of information that are probably going to
be surprising and these are these this data actually makes the case for for an
extension of the $600 week federal booster so recent research from the
Chicago Federal Reserve finds that people receiving unemployment benefits
are actually more likely to search for a new job now again I know the Republicans
think that hey we need individuals to get back to work the question is where
are the jobs I'll get to that in just a second but again research from the
Chicago Federal Reserve suggests that individuals who receive unemployment
benefits actually more likely to search for a new job
then those who stop receiving aid in other words if you're receiving
unemployment benefits you're more likely to look for a new job
very interesting I'll link to that a link to that article below
from the Chicago Federal Reserve so you can check it out for yourself also a
report from Harvard economists and Chetty is one of them The Economist that
I mentioned earlier also finds that a general fear of the pandemic again a
general fear of the pandemic not the state mandated shutdowns that is what
restricts business activity that is what prevents individuals from going in
getting a haircut that's what prevents individuals from going out to eat a
general fear of the illness is the primary cause of reduced economic
activity and job loss think about this for a second the state shuts things down
the state has mandated social distancing guidelines but it is the fear of the
illness that keeps people away more than what the state and what the federal
government said that's what the that's what they report from Howard economists
said so I will link to that in the description below so what this basically
means is if the fear associated with this pandemic with this illness goes
away things will start to get back to normal we will start to resume our
normal life because we want to we don't need the state and the federal
government to tell us that we know that if we feel comfortable going out there
we know that if we feel that we're going to be safe going out there then things
gradually start to get back to normal that is that is quite significant now
also the capacity to really restore economic activity without fundamentally
addressing the health concern is limited these are the words of the Harvard
economist Chetty as far as economic policy goes
mitigating the hardship of people who've lost the most is likely to be the most
effective so what he's basically saying is help should go to those who need it
the most but he did say that there's a public health safety aspect to this and
once that's tackled that should allow all of the things to fall back into
place gradually in our economy now let's go back to Moody's Analytics chief
economist Mark Zandi what Zandi said and according to him stimulus checks are
among the least impactful forms of fiscal support projected to boost GDP
one year out in simple words he thinks that the economy will not improve a year
from today with just stimulus checks he and this is what the Harvard economist
Chetty said he adds that April's stimulus payments helped lower-income
households recover in the short term by paying for things like food housing and
households recover in the short term by paying for food housing and essential
bills though businesses that benefited the most were primarily large online
retailers such as Amazon ironic isn't it high income households were more likely
to save any stimulus funds that they receive rather than spend it so
individuals who had more money just ended up saving the money and
individuals who had very little money or no money ended up spending the money on
simple items on the basic things like food and living expenses so in his
opinion in the Harvard economist opinion it didn't really boost the economy it
provided a simple form of sustenance if you will and nothing more
so Chetty said what's the bottom line going forward we should be focusing on
unemployment insurance and expanding safety net programs like Snap
fundamentally because those programs provide what he calls social insurance
they mitigate economic hardship in a time of crisis now I know there are a
lot of things that are not certain in the world that we live in I know there's
a lot of anger there's a lot of frustration specifically with the
government and specifically with this whole situation that has been thrust
upon us through no fault of our own one thing is for sure the
decisions that the government makes in the next few weeks are going to impact
the American economy the American workup and the belief and the faith in
government for a long time to come I know that a lot of us are struggling
right now and are trying to get through the next few days and I'm trying to put
food on the table and trying to keep the lights on my advice to you would be to
try and learn new skills my advice to you would be to try and as best as you
can once you weather this crisis try and improve economically try and create
savings try and get better at investing so that we don't have to depend on the
government going forward I know that everyone's struggling out there I know
that a lot of individuals are suffering I feel for you I'm trying to help you
with my channel and hopefully I've been able to give you some ideas to get
through this this horrible crisis there is a short-term and a long-term aspect
to this I do believe that the government should help those who need it the most
in the short term that's what we depend on government for but in the long term I
believe we need to be more professionally more financially
independent which would which involves learning new skills getting better at
what we do perhaps even changing careers so that we become indispensable for
employers if some of us want to start our own business then by all means go
ahead and start your own business but in the future we need to fundamentally
reengineer the way we've looked at our jobs the way we looked at our place in
in the world the way we've looked at our finances and the buffer that we create
for ourselves the cushion that we create for ourselves must be greater going
forward I hope I was able to give you some ideas in this video I I'd love to
know what you think do you think the unemployment booster is going to be more
important more relevant more useful then stimulus checks when it comes to your
financial future when it comes to the GDP the American GDP the economy in the
next one year which is essentially what this video is all about what this
article was all about and what those economists were talking about thank you
so much for watching if you're not an existing subscriber yet please click
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