2020 will be the year that changed how we look at the US economy forever.
With unprecedented benefit packages and relief programs from COVID-19, the economic shakeup has been asking people what type of impact this will have long-term, let alone the next six months. Considering that we’re in an election season, both sides are going to want to win over their base while working with the benefits people have been happy to receive.
When factoring everything else in our polarizing year, we’ve decided to put together a list of five considerations we could anticipate for the second half of 2020. Here’s what you should know:
A Stall In Benefits
While programs like PUA and PPP have been great in keeping people afloat, most benefits run out in late-July. With no current plan in place by Congress to replace or extend these programs, we could see a stall in benefits, or quite possibly no more financial relief at all. Considering that this is an election year, both sides are going to exacerbate what they believe their base wants, however, it’s to be determined just how the public reaction will be when the second batch of relief packages hit the congressional floor.
On the left, moderate and progressive Democrats have been proposing everything from a $2,000 per month UBI to extending the current plan into the Fall. On the right, Republicans’ biggest fear is that people are unwilling to go back to work since they’re making more off of unemployment than their actual jobs. To combat this trend, they’re proposing changes such as ‘back to work’ bonuses. Ultimately, both sides will have to come to some sort of agreement to make their constituents happy, which might boil down to raising the minimum wage.
Unemployment Staying Stagnant
With ongoing debates and the added potential of unemployment benefits extending without any incentive to go back to work, a lot of employment opportunities might simply be left on the table. Of course, this could crash a lot of companies that have relied on maintaining and growing from cheap labor; and those who can hire might be forced to go with less experienced talent if they can’t increase their pay grade. The numerous factors at play between the value of wages versus unemployment could leave employment in flux for the next few months, especially if there isn’t much incentive for a lot of the workforce to go back (including those who had positions that are now rendered obsolete).