Why slash the unemployment bonus?


The government support created by The Cares Act has actually increased personal income since the start of the recession. But Americans haven’t been holding onto this money. They’re spending it, and spending it on important things, research suggests. Analysts from the Kellogg School of Management at Northwestern University that analyzed how people spent their stimulus checks found that individual spending went up for food, household items, and bill payments, including rent, “suggesting that many people were using the funds to obtain necessities and catch up on bills.” Nor has it been a disincentive for Americans to go back to work because, well, they’ve started going back to work.