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Once this is over, I think we should define a new category of unemployment: That which is in response to a public health or safety crisis. This new category should have different rules and benefits. For instance, "looking for work" should not be a requirement to receive it. 1/4https://twitter.com/EconomicPolicy/status/1242457429062963200 …
EPI estimates that 3.4 million Americans filed new claims for unemployment insurance this past week, which would raise the unemployment rate by 2 percentage points from 3.5% to 5.5%. https://www.epi.org/blog/coronavirus-record-breaking-spike-in-ui-claims/ … pic.twitter.com/8Zihx0D2TwI believe the benefit for "public health unemployment" should be equal to or close to the employee's normal compensation. Also, if employers don't resume paying the employee, they should be held responsible for the difference between normal benefits and these higher benefits. 2/4
Unlike normal unemployment, which is claimed by and paid to the worker, this Public Health Unemployment should be claimed by the employer on behalf of employees. Post-event, employers would account for money and prove its distribution to employees. 3/4
Some will argue that replacing income at 100% would be very expensive. Yes, this is certainly the case. However, it is also the only way to limit massive damage to the economy. This kind of unemployment creates a public benefit. Costs should follow benefits. 4/4
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