In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the Families First Coronavirus Response Act (FFCRA) to try and tackle the COVID-19 pandemic. Unfortunately, swift action does not always yield success. Sweeping changes to the unemployment system—including a $600 weekly unemployment bonus—made sitting at home more profitable than working, forcing small businesses trying to rehire workers to compete against government benefits to fully reopen.
Since the unemployment bonus expired in July, the economic recovery has kicked into overdrive. Millions of Americans have returned to work, and unemployment has plummeted. Now, entrepreneurs are creating new startups at a record pace.
But talks of creating another unemployment boost could slam the brakes on that recovery and derail America’s comeback story.