The pernicious effect of the welfare cliff. While well intentioned, the federal coronavirus stimulus package disincentivizes work. Workers dropping out of the labor force often don’t return. The unemployed don’t pay taxes to pay for the unemployed.
Welfare cliff.
Labor force participation.
Relevant.
Workers Are Asking to Be Laid Off, Because COVID-19 Unemployment Benefits Pay Better than Work | Hans Bader
“The very people we hired have now asked us to be laid off,” Marietta wrote in a blog post. “Not because they did not like their jobs or because they did not want to work, but because it would cost them literally hundreds of dollars per week to be employed.” With the federal government now …