THE LOGAN ALLEC SHOW

Is the Stimulus Too Generous to the Unemployed?

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The CARES Act provides for an extra $600 weekly payment to those on unemployment during these turbulent times.  This would cause some people to make more money while on unemployment than they would while working!  Let me know in the comments what you think about this!

So here are the details:

Let's say someone makes $15 an hour before taxes and all that, so that's $600 a week for a 40-hour week.

And let's say they get laid off.  What happens?

Well, they apply for and get unemployment from their state.  And how much is that for?

It depends on your state.  Here in California someone who consistently made $15 an hour for the past couple years could expect approximately $300 per week in unemployment benefits.

But they would also get $600 a week due to the CARES Act.

Add that $600 due to the CARES Act plus $300 for normal unemployment, and what do you get?  $900 per week.

So this person who was earning $600 per week for giving an employer 40 hours of their life, every week.

Now, as they sit at home, hopefully liking and subscribing to this channel, they get a 50% pay raise because they're getting $900 per week from the government.

Now for fun let's annualize $900 per week.

$900 per week times 52 weeks in a year is $46,800.

That's more than the median annual income in this country.

So what do you think?

On the one hand, those who don't make a lot of money, those who only make a few hundred dollars a week in the first place, sure, they may need more money right now.

But on the other hand, I could see how it wouldn't sit well that someone could make more money for not working than they would have made while working.

Does this stimulus in fact encourage laziness?

I want to know what you think about this because although I lean in one direction here, I like to keep an open mind.

So let me know in the comments what you think about this situation!

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Logan Allec is a CPA and highly-sought-after personal finance expert who went from $50,000 of debt at age 21 to millionaire by age 30. He believes that money, as one of the best tools we have to live an incredible life, is something that everybody should master. And he’s on a mission to teach you what he knows about money, both through his experiences overcoming his own financial challenges as well as through the skills he’s developed as a veteran financial pro.

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