“Get back to work, you lazy SOBs!”
The Republicans in the Senate and the
White House are as of today still very much undecided on what should be in the
next relief bill, but they’re all agreed on one thing: They don’t like the Democratic
proposal to extend the current $600 per week supplemental payment. Some of
them, like Sen. Graham, don’t think there should be any bill at all – we should
just let the whole supplemental payment idea drop when it expires at the end of
the month (although it’s effectively expired already, given how unemployment
benefits are normally calculated). Others – including Sec. Mnuchin, who seems
to be running economic policy now, for lack of interest in the White House
itself – want to be more generous and continue the current supplemental payment
at about $2-300 a week. This is more likely to become the GOP position.
Given that state unemployment benefits
normally provide $2-400 a week, which of course is no princely sum, this means
that the GOP is proposing at best to have the unemployed receive $4-700 a week,
vs. the $800-1,000 a week that they’re receiving now. For those of us with
income above that level, this might not seem to be a huge difference, but it
really is. In fact, economists have said that the $600/week benefit has a)
prevented the poverty rate from increasing during the pandemic, when it would
otherwise have increased dramatically, and b) provided the only real spending
support to the economy, keeping the US from perhaps sliding into a real Depression,
not just a severe recession. And that’s because it’s just about certain that
every dollar in unemployment aid is spent on essentials like rent and food –
nobody’s squirreling it away in Bermuda or buying a second home in Aspen.
What’s the Republicans’ reason for
being so much against extending the benefit at the current level? You might
have expected them to say things like “We just can’t afford it”, which is simply
nonsense in the middle of the worst economic crisis since the Depression – and very
much mirrors what Herbert Hoover was saying as the banks started collapsing and
people were thrown out of jobs in frightening numbers in 1932.
No, the Republicans’ real concern is
that by keeping the benefit at $600 a week, we will – horrors! – end up paying
people more than they earned when they had a job, and they’ll just continue to
sit at home until the benefits run out. This is a nice, traditional GOP-style
fairy tale, which is again much like President Hoover’s rationalizations for
not doing anything to support people as the economy collapsed in 1932 (although
the collapse was much swifter this time around). But it ignores these facts:
1.
If
people were voluntarily staying away from work, wages would be rising as
employers would be desperately trying to find workers. That’s not happening.
2.
If
these people were laid off and subsequently recalled, yet didn’t return to work
for whatever reason, they would have lost all unemployment benefits anyway. So
people are still receiving benefits because either they’re still on temporary
layoff or their old job is gone for good.
3.
Since
most of the laid off people lost health or retirement benefits with the layoff,
they have lots of other incentive to return to work, even if the wage is a
little less than they received before. And Trump – always trying to be helpful,
of course – refused to reopen the enrollment window on Healthcare.gov, so
people who lost their health coverage but still make too much to go on Medicaid
have no insurance at all. They should be extremely motivated to get their old
jobs back.
4.
So
the main reason the GOP wants to reduce the benefit isn’t to get people to go
back to their old jobs, but to induce them to search for new ones, which of course
is pretty hard when the unemployment rate is 14% or so.
5.
But
here’s the catch: There are certainly jobs to be had. They’ll most likely be at
a lower wage than what most people earned before and they certainly won’t be
glamorous, but at least the person will be able to work. For example, the meat
packing plants have lots of openings, since a lot of their employees have
gotten sick, and many have died. Why not go there?
6.
The
reason is obvious: Many of these openings are in unsafe workplaces. If we had a
real OSHA like we used to, they would be doing their best to make sure all
workplaces are safe. As it is, OSHA hasn’t investigated a single complaint
about unsafe workplaces due to the coronavirus. They literally close every
complaint by sending a letter to the employer asking what they’re doing about
the problem. Of course the reply is always “Thank you. We’re on top of this.” And
that’s all OSHA needs to hear to close the case.
So what the GOP is essentially saying
is “You need to get back to work, period. We don’t care whether the workplace
is safe or not, and we’re not going to do anything to fix it. In fact, we’re
going to exempt the employer from liability, so you won’t be able to sue them
if you do get sick. Oh…and be sure to vote for us in November.”
Sounds like a winning re-election
strategy to me!
The
numbers
These
numbers are updated every day, based on reported US Covid-19 deaths the day
before (taken from the Worldometers.info site, where I’ve been getting my
numbers all along). No other variables go into the projected numbers – they are
all projections based on yesterday’s 7-day rate of increase in total Covid-19
deaths, which was 4%.
Note
that the “accuracy” of the projected numbers diminishes greatly after 3-4
weeks. This is because, up until 3-4 weeks, deaths could in theory be predicted
very accurately, if one knew the real number of cases. In other words, the
people who are going to die in the next 3-4 weeks of Covid-19 are already sick
with the disease, even though they may not know it yet. But this means that the
trend in deaths should be some indicator of the level of infection 3-4 weeks
previous.
However,
once we get beyond 3-4 weeks, deaths become more and more dependent on policies
and practices that are put in place – or removed, as is more the case nowadays
- after today (as well as other factors like the widespread availability of an
effective treatment, if not a real “cure”). Yet I still think there’s value in
just trending out the current rate of increase in deaths, since it gives some
indication of what will happen in the near term if there are no significant
intervening changes.
Week ending
|
Deaths reported during week/month
|
Avg. deaths per day during
week/month
|
Deaths as percentage of previous month’s
|
March 7
|
18
|
3
|
|
March 14
|
38
|
5
|
|
March 21
|
244
|
35
|
|
March 28
|
1,928
|
275
|
|
Month of March
|
4,058
|
131
|
|
April 4
|
6,225
|
889
|
|
April 11
|
12,126
|
1,732
|
|
April 18
|
18,434
|
2,633
|
|
April 25
|
15,251
|
2,179
|
|
Month of April
|
59,812
|
1,994
|
1,474%
|
May 2
|
13,183
|
1,883
|
|
May 9
|
12,592
|
1,799
|
|
May 16
|
10,073
|
1,439
|
|
May 23
|
8,570
|
1,224
|
|
May 30
|
6,874
|
982
|
|
Month of May
|
42,327
|
1,365
|
71%
|
June 6
|
6,544
|
935
|
|
June 13
|
5,427
|
775
|
|
June 20
|
4,457
|
637
|
|
June 27
|
6,167
|
881
|
|
Month of June
|
23,925
|
798
|
57%
|
July 4
|
4,166
|
595
|
|
July 11
|
5,087
|
727
|
|
July 18
|
5,476
|
782
|
|
July 25
|
6,971
|
996
|
|
Month of July
|
26,566
|
857
|
111%
|
August 1
|
7,311
|
1,044
|
|
August 8
|
7,668
|
1,095
|
|
August 15
|
8,042
|
1,149
|
|
August 22
|
8,434
|
1,205
|
|
August 29
|
8,846
|
1,264
|
|
Month of August
|
34,772
|
1,122
|
131%
|
Total March – August
|
191,460
|
I. Total
deaths
Total US deaths as of yesterday: 149,852
Deaths reported yesterday: 452
Yesterday’s 7-day rate of increase in total deaths: 5% (This number
is used to project deaths in the table above; it was 5% yesterday. There is a
7-day cycle in the reported deaths numbers, caused by lack of reporting over
the weekends from closed state offices. So this is the only reliable indicator
of a trend in deaths, not the three-day percent increase I used to focus on,
and certainly not the one-day percent increase, which mainly reflects where we
are in the 7-day cycle).
II. Total
reported cases
Total US reported cases: 4,371,992
Increase in reported cases since previous day: 56,066
Percent increase in reported cases since 7 days previous: 14%
III. Deaths as a percentage of closed cases so far
in the US:
Total Recoveries in US as of yesterday: 2,090,231
Total Deaths as of yesterday: 149,852
Deaths so far as percentage of closed cases (=deaths + recoveries): 7%
For a
discussion of what this number means – and why it’s so important – see this post. Short
answer: If this percentage declines, that’s good. It’s been steadily declining since
a high of 41% at the end of March. But a good number would be 2%, like South
Korea’s. An OK number would be 4%, like China’s.
I would love to hear any comments or
questions you have on this post. Drop me an email at tom@tomalrich.com
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