Buffalo, NY (WBEN) The $300 unemployment boost rolls out today, but there's no word on if Congress will pass another stimulus package before November's elections.
Congressman Brian Higgins is pleased to see the $300 boost. "More money in the pockets of the people, more demand in the economy. More demand in the economy more growth," says Higgins.
"I think it will help in lieu of us not coming together on a new stimulus. I commend the president for showing leadership and doing this on his own," says Congressman Chris Jacobs. "$300 in additional unemployment assistance to folks who are suffering the consequences of the COVID situation. That's money in their pockets to spend in the local economy. I think it's a good thing," says Jacobs. " He believes the $300 is more reasonable than the $600 last time because companies told him some people weren't interested in coming back because they were making more money on the sidelines.
As for passage of a stimulus before November, the congressmen are divided. "It doesn't look likely, to be truthful," says Higgins. "It's incumbent upon federal government during a national emergency to marshal the resources of the federal government to ensure the county, state, and city, all of whom have had less revenues and incurred more expenses because of a pandemic that's really no one's fault." Higgins says the government needs to get ahead of COVID19, only then will there be a chance to rebuild the economy.
"I'm still hopeful that people in Washington will focus on who elected them, and the needs of the people of their home communities that they significantly have," says Jacobs. "I will be there voting Monday to make sure we fund the government in general, but I assume a lot of us will be advocating to get to work to help those in need as we get out of the COVID crisis."
Ed Hutton of Niagara University says while the unemployment boost is helpful, "there is still an unemployment rate over 8 percent, so there are a lot of people without jobs, and people making less than what they were."
If there's no passage of a stimulus before November, Hutton says the Fed may have to step in. "I would expect this would put more pressure if the economy starts to falter that this will have to come from the Fed. The Fed has said it will do whatever it takes to keep the economy moving," says Hutton.
He anticipates an opportunity for new businesses. "The PPP program helped businesses get started and I think for people who don't have jobs right now, the jobs they had don't exist anymore. I think what Congress needs to do is to stimulate the start of new businesses," believes Hutton. "Although a lot of businesses have gone away, there's opportunities for additional businesses, and I think it would sorely missed if Congress doesn't do something to encourage the formation of new businesses."