Wednesday, July 29, 2020

State scale problem

Mainers face income drops, more delays as Congress mulls virus unemployment extension

More than 84,000 Mainers filed continued claims for the week ending July 18, the most recent week for which data are available, marking a downward trend. But the expiration of the extra $600 is coming as some are still waiting to receive their first benefits, as issues with the state’s online interface and difficulties reaching state workers by phone have led to significant delays.

A proposal floated by Senate Majority Leader Mitch McConnell, R-Kentucky, on Monday would replace the $600 with $200 per week while giving states two months to match 70 percent of workers’ previous wages, The Washington Post reported. In Maine, the change would amount to a 43 percent drop in income for individuals receiving the average benefit.
Significant changes to the program, including switching to sliding benefits correlated with previous wages, would likely pose an administrative problem for states including Maine that have struggled to keep up with increased demand throughout the coronavirus pandemic.

Boldface.
Most states face this, covid is a black swan. But the continuing scale problems plague the small states while the large states are looking for massive pension scale solutions.  Suggest we get educated economists.

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