While Democrats and Republicans continue to grapple with the next stimulus package, Treasury Secretary Steven Mnuchin suggests the $600 in enhanced unemployment benefits is doing more harm than good in some situations.
Appearing on ABC’s “This Week,” Mnuchin was asked by host Martha Raddatz if he believes the $600 in unemployment insurance is a disincentive to find a job.
“There’s no question. In certain cases where we’re paying people more to stay home than to work, that’s created issues in the entire economy,” Mnuchin said.
Raddatz pressed Mnuchin citing a study conducted by economists claiming they are not seeing evidence of the benefits affecting the rate at which Americans are returning to work.
Mnuchin suggested there are still some instances where those who are at home are paid more than those who are working.
“We know factually, there are cases where people are overpaid. There are cases where people underpaid. The issue is, we need to come up with an agreement to extend this,” Mnuchin said.
He added, “We need to get kids into school and we’re going to work every day until we reach a reasonable agreement that’s good for the American public.”
Watch his comments below:
Treasury Secretary Mnuchin tells @MarthaRaddatz “there’s no question” that $600 unemployment insurance is a disincentive to find a job in “some cases.”
— This Week (@ThisWeekABC) August 2, 2020
“There are cases where people are overpaid,” he adds when pressed about study refuting his argument. https://t.co/HNQgCe39RN pic.twitter.com/1zceOdxULW
According to Mnuchin, White House Chief of Staff Mark Meadows and himself put forth between three and four offers addressing the enhanced unemployment benefits.
“We put on the table a proposal. Let’s extend it for one week at the same rate while we negotiate so we don’t hurt the American public,” Mnuchin said.
House Speaker Nancy Pelosi (D-Calif.) claimed there is no evidence to suggest the enhanced unemployment benefits act as a disincentive for Americans to go back to work, as IJR previously reported.
Mnuchin revealed on Wednesday Democrats and Republicans are “very far apart” on reaching an agreement, as IJR previously reported.
Both sides will meet again for negotiations on Monday.
