$600 Unemployment Checks May Return. Trump, GOP May Be Shifting Stance On It.

TOPLINE

President Trump and Republicans appeared to back down from their firm opposition to extending $600 unemployment benefits on Friday but remained at an impasse with Democrats on a solution, even as the benefits officially expired.   

KEY FACTS

What to watch for  

Pelosi (D-Calif.), Senate Minority Leader Chuck Schumer (D-N.Y.), Treasury Secretary Steve Mnuchin and Meadows met at the Capitol on Saturday morning to discuss the $600 benefit and other elements of the next stimulus package. 

Crucial quote

Trump took to Twitter on Friday and expressed perhaps his most aggressive pitch to extend the benefits yet:

Surprising fact

A study from Yale University published last month found that expanded jobless benefits did not deter those workers from finding employment. Meanwhile, a separate study from the University of Chicago found that 68% of unemployed workers received more in benefits than they did working their previous jobs. 

Key background

Slashing unemployment benefits could have a devastating effect on the economy. Mark Zandi, chief economist at Moody’s, told Forbes that if the benefits are decreased to $200-per-week through the end of the 2020 (a proposal that has been floated by GOP lawmakers) U.S. GDP would see a decline of 1.15%. If the payouts are eliminated completely, it would result in a GDP decline of 1.3%, Zandi says, and 1.1 million more in job losses.

Further reading

Trump, GOP soften on opposition to $600 jobless benefit (Associated Press)

As $600 Weekly Unemployment Benefits Expire, Here’s The Latest On When More Relief Could Come (Forbes)

Congress leaves town without a coronavirus stimulus deal, allowing $600 unemployment benefit to end (USA Today)

Slashing $600 Unemployment Benefits Would Be ‘Absolutely Devastating’ For U.S. Economy (Forbes)