White House: "Bonus for Returning to Work... Economic Recovery 'V-Shaped'"

Kudlow, "Really Regretful" About Powell's Remarks on 'Uncertain Recovery Speed'

Donald Trump (right), President of the United States, and Larry Kudlow, Director of the National Economic Council
[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The White House is planning to provide a $600 bonus to workers who lost their jobs due to the novel coronavirus infection (COVID-19) pandemic if they return to work early. Additionally, the $600 weekly unemployment benefits paid to workers who lost their jobs due to COVID-19 will end as scheduled on July 31. This is interpreted as a measure to encourage work motivation amid criticism that some are earning more income through government support than before losing their jobs.

Larry Kudlow, Chairman of the White House National Economic Council (NEC), revealed this plan in consecutive interviews with CNN and Fox News on the 14th (local time).

Chairman Kudlow appeared on CNN's State of the Union and described the expanded unemployment benefits as "probably more than the existing pay," pointing out that "when combining the usual unemployment benefits and the support under the stimulus package law, some receive more money than their pre-COVID-19 job earnings."

The United States has been providing an additional $600 weekly on top of existing unemployment benefits as many workers faced the risk of layoffs due to the COVID-19 crisis.

He stated, "This measure was effective for the first few months, but not anymore." Kudlow emphasized, "We do not want to hinder the process of people returning to work."

He further announced that this measure will end as scheduled on July 31 and explained, "We are considering giving an additional $600 bonus if people return to work."

Until now, bonuses were given to secure livelihoods due to unemployment, but now cash payments will be made under the premise of returning to work.

This differs from the fourth economic stimulus bill being pushed by the Democratic Party, which includes extending the expanded unemployment benefits until January. The White House and the Republican Party have clearly opposed this.

According to the Becker Friedman Institute at the University of Chicago, about two-thirds of workers who lost their jobs due to COVID-19 are receiving more money from the government than their previous workplace wages.

The issue is how many people will return to work and receive the new bonus. Kudlow and the CNN host even debated this point.

Regarding this, Kudlow asserted that the U.S. economy will recover sharply in a V-shaped manner and that a significant number of jobs will be restored early.

Kudlow said, "The possibility of a V-shaped recovery is very high," adding, "The unemployment rate will fall, and next year will be another solid year."

Kudlow criticized Federal Reserve Chairman Jerome Powell’s statement at a press conference on the 10th, where Powell said the speed of economic recovery is very uncertain and "it will be a long journey and take time," calling it "really regrettable."

This content was produced with the assistance of AI translation services.