Hi everyone! This is Dr. Nitin Chhoda and welcome to my channel Ignition Time.
Where I give you important news and balanced news about the future of your
finances, the future of stimulus checks, unemployment benefits and all things
related to your finances. Now this has been the clearest indication yet of
what's likely to happen to the $600 a week federal unemployment booster which
is a lifeline for many of my subscribers, which is a lifeline for millions of
Americans. I'm going to let you listen to the words of the US Treasury secretary
Stephen Mnuchin and then I'll give you my analysis after he's done talking.
Basically, what the Treasury secretary said was that the Trump administration
wants to cap, wants to limit enhanced unemployment benefits in the next relief
package and he wants to make sure that workers do not get benefits that amount
to more than they're former wages. When he was specifically asked about this, he
said and I quote "you can assume it will be no more than 100% of what they
were receiving prior to losing their job. So yes, we want to incentivize people to
get back to work." So he specifically said we want to incent people to get back to
work. So let's listen to the words of the US Treasury secretary right now. Plan
for that as it relates to the enhanced unemployment. We've been very clear. We
knew there was a problem with enhanced unemployment. In that certain cases
people were paid more than they made in in their jobs, that was a technical fix.
We were in an emergency, we went along with that, we're gonna fix that, technical
fix. We're gonna make sure that people are incented to go back to jobs. I've
heard stories of where companies are trying to get people back to work and
they won't come because the enhanced unemployment but we'll we'll fix that
and we'll figure out an extension to it that works for companies and works for
those people who will still be unemployed. Now this is very important if
you heard the words of the Treasury secretary. He said - we were in an
emergency, we are going to fix the technical fix that's exactly what he
said and he said so that people are incentivized to go back to work. Now what
exactly does he mean by technical fix? Does that mean that the $600
unemployment booster will go away because that's going to be that's going
to be devastating for millions of families. When he was
specifically asked about this question, let's hear about what he had to say. A
cap on those benefits at 100% of whatever that worker was making before.
You can assume that it'll be no more than 100%. So yes we want to
incent people to go back to work and even at 100% if people have
jobs we want them to go back to work. So enhanced unemployment is intended for
people who don't have jobs in particularly industries that are that
are harder to rebound so we will not be doing it in the same way and we're in a
dramatically different situation. Many businesses are open. Many businesses want
to hire more people today. So there are 2 things here worth noting. 2 things
that really jumped out at me. The first is and these are his words - even at 100%
if people have jobs we want them to go back to work. But the question is
where are the jobs? What happens to individuals who lost their jobs what
happens to my view was my subscribers who've lost their jobs through no fault
of their own it's it's not our fault that we were impacted by this and this
resulted in us losing jobs that we had for many years many decades in some
instances and the second thing that he said was enhanced unemployment is
intended for people who don't have jobs particularly in industries that are
harder to rebound so we will not be doing it the same way so what he's
basically saying is they took a broad approach because there was an emergency
and because there was a technical glitch some individuals ended up getting a lot
more money than they should have gotten because they weren't making that money
prior to this emergency and therefore those individuals now have an incentive
to not want to go back to work according to him again these are the words of the
US Treasury secretary as I understand them please understand that I am in
favor of benefits for those who needed them more so again don't shoot the
messenger but as far as what the Treasury secretary said it appears that
the next unemployment benefits package could either be limited to some sort of
an income threshold because the Senate Majority Leader Mitch McConnell has
thrown out some numbers like $40,000 it may be a starting point for negotiations
but the Treasury Secretary's even minuchin and you see him here on
your screen he specifically said that they want to fix this glitch and he said
we will not be doing it the same way so that's it everybody thank you so much
for watching I will keep you updated with fair and balanced news as it comes
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learn something new in this video thank you so much for watching I'll see you in
the next video bye