Obama’s Top Economist Warns About COVID Unemployment Benefits

Harvard University economist Jason Furman suggested in a new study that the American Rescue Plan’s expansion of unemployment benefits could be harming the United States’ post-pandemic economic recovery.

Furman’s study argues that a lack of childcare options for working parents of young children is not causing the country’s poor jobs numbers. Instead, he writes in the study, “the continued concern about the threat of getting COVID-19 at work or expanded unemployment insurance benefits and eligibility” are the key “factors responsible for the slow employment recovery and depressed labor supply.”

Are parents of young kids dragging down employment?

I was surprised by the answer @jasonfurman, @kearney_melissa, & Wilson Powell found when they looked at the data. That is good, because it means I learned a lot from their paper: https://t.co/s2TsuLaewO pic.twitter.com/hec3705VTu

— Michael R. Strain (@MichaelRStrain) May 17, 2021

The study was co-authored with Harvard University professor Wilson Powell and University of Maryland professor Melissa Kearney. Furman previously served as the chairman of President Barack Obama’s Council of Economic Advisers.

The study provides new evidence for Republicans and conservative economists, who argue that the ARP’s unemployment benefits expansion was a key contributor to April’s poor jobs numbers. At least 22 states with Republican governors have rejected the expansion.

“It’s hurting our productivity,” Georgia Gov. Brian Kemp said of the expansion. “Every small business owner, and the workers that are currently working, they need more people.” (Read more from “Obama’s Top Economist Warns About COVID Unemployment Benefits” HERE)

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