Today, Monday, US authorities stopped granting Corona pandemic subsidies to the unemployed under the CARES program approved last year, which affects an estimated seven million American workers.
This decision comes after the monitoring mandates Republicans will stop this program starting nowIn a moment in which the United States celebrates Labor Day, which falls today.
This occasion was not a happy one for the unemployed, as the pandemic benefits for the unemployed, approved in March last year, end today.
Congress had expanded the safety net for the unemployed during the pandemic, through the CARES Act, worth more than two trillion and two hundred billion dollars.
Although the aid was never meant to be permanent, it was authorized to grant it twice, the last of which was through the $ 1 trillion nine hundred billion “American bailout” approved by President Joe Biden. and by members of his Democratic Party in Congress last March.
At the same time, people who are entitled to benefits will continue to receive them under the normal unemployment programs applied in the states, but the expiration of the additional amount of three hundred dollars a week means that their income will decrease.
Twenty-six US states, mostly governed by Republicans, had interrupted, in everything or in part, the pandemic subsidies to the unemployed from the beginning of the year.
One studio of American and Canadian universities said the spending in these states decreased by twenty percent after this decision.
Meanwhile, the economy is still far from a full recovery, as it has yet to replace the 5.3 million jobs lost during the pandemic, with employers opening just 235,000 jobs last August.
The decision to stop pandemic aid to the unemployed places further pressure on the Federal Reserve’s upcoming plans, through which it seeks to ease the purchase program of asset and then moving towards gradual increases in interest rates, which raises doubts that these challenges will hamper the Fed’s future plans to accelerate the pace of economic recovery.
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