While Donald Trump desperately attempts to spin historically bad economic numbers and over 34,000 Michiganders apply for unemployment in the last week alone, Michigan voters are seeing the devastating effects of his failed record. Here’s what they’ve been reading:
“You just look out the window and you know things are grim,” said Justin Wolfers, a professor of economics and public policy at the University of Michigan. “The first, second, and third most important things for the economy right now are the progress of the disease.”
Jobless rates in Michigan had been steadily recovering since the initial upset caused by the novel coronavirus pandemic three months ago. But that pattern broke at the end of June, where new jobless claims rose.
At the end of July, enhancements to the unemployment system made to accommodate the strain the coronavirus placed on the economy start to expire.
That $600, included in a government relief package enacted in late March, has helped millions of workers stay in their homes and pay bills even as the unemployment rate surged to its highest levels since World War II.
But President Trump has pushed a back-to-work bonus to replace unemployment’s enhancements as part of a broader approach to paint the economy as recovered. Trump took a celebratory tone discussing June jobs numbers.
Moving forward, claimants receiving unemployment benefits will collect money only from the state, which maxes out at $362 a week. That’s unless Congress approves new legislation extending the $600 extra benefit.
By and large, Democrats are pushing for an extension, either at the full or a reduced amount, while many Republicans argue the $600 encourages claimants to not go back to work because they make more collecting unemployment…
Michigan has one of the highest rates of unemployment compared with other states — topping 21% in May compared with 13% nationwide, and is among the states distributing the most money in unemployment benefits.
State officials estimate that a backlog of more than 75,000 landlord/tenant cases could be filed once the ban is lifted, compared with the nearly 17,000 cases that are filed a month normally, a number that will likely increase if renters aren’t back to work and can’t afford rent payments.
The surge in jobs added to the economy in June brought the unemployment rate down to 11.1 percent. But some Michigan Democratic leaders find the numbers misleading, believing the large number of jobs added in June are reflective of businesses reopening from the coronavirus shutdown.
Many wonder how a new surge in cases will impact the economy.
“We have to look at numbers with a grain of salt,” said Hillary Scholten, Democratic Candidate, US House MI Dist. 3. “Those were pre-spike numbers…”
“The story to economic recovery is not as simple as it seems,” said Rep. Jon Hoadley, Democrat Representing MI 6th Congressional District. “The willful inaction from Congressman (Fred) Upton (R-St. Joseph) and other Republicans who voted no on the Heroes Act, signals we don’t have folks who fight for Michigan families.”
The Michigan Democratic Party held a press conference featuring congressional candidates Rep. Jon HOADLEY (D-Kalamazoo) (MI-6) and Hillary SCHOLTEN (MI-3) to decry D.C. Republicans for not extending supplemental unemployment benefits and how President Donald TRUMP’s “failed COVID-19 response has hurt Michigan workers.”
Their story represents that of many Michigan families feeling the pinch from the White House. State Representatives like Jon Hoadley (D-Kalamazoo) believe the key to recovery is more federal support.
“While our road to recovery for public health continues to be uncertain, as we see inaction coming out of the federal government, we also know that our road to economic recovery is bumpy at best,” he said.
Hoadley spoke to reporters about the economic situation facing Michiganders. Hoadley connected the situation that Michiganders like Carls face to the larger inaction and mismanagement from the Trump Administration. Additionally, as The ’Gander reported, measures that strengthen unemployment are temporary and starting to expire.
At the end of July, an additional $600 per week in unemployment that Michiganders count on will expire. It’s unlikely that boost will be extended, as national Republicans have called it a mistake.
