Tuesday, May 5, 2020

Consequences of COVID-19 Unemployment Checks

The mad government actions in the wake of the government-induced COVID-19 panic are creating all kinds of distortions in the economy.

John Q. Khosravi emails:
Hi Bob, just saw this in an online forum for lawyers: 
Good evening.
When business slowed, and the state of California issued the stay-at-home order, my 7 employees applied for the part-time unemployment option with EDD, and started working from home. Soon, some of them realized they were making more money getting unemployment While working less than 15 hours a week remotely.
Then last Friday, my PPP loan was approved and funded, and I want to pay them the 40 hours a week (even though they may not have enough work for 40, but surely for more than 15 hours). Some of my workers are upset because they make more with unemployment.
I always tried to make sure my staff was happy to work for me. It was always my philosophy that a happy worker is a good efficient worker. It just seems like that if they make more money right now, how would they work happily and effectively if “forced” to work for less? At the same time, I don’t want to repay this PPP loan, so I need everybody back!
Anyone else having this problem?
Should I just return this loan?
My gross went down 80% from Feb to April.
I am a schedule C filer.
How is everybody else handling the PPE loans when workers make more when working less than 15 hours ?

This is probably occurring across the economy, which of course is causing even more bottlenecks in the production of goods and services.



  1. Just shows you the kind of employees they are. Just hire someone else who actually wants a job. Don't employ people with this mentality.

    1. I understand the employees' POV in the short term but obviously their understanding of the job market and economy isn't sophisticated enough to account for the long term.

      It would probably be wise for someone who is unemployed or partially employed to take some job, any job NOW. Yes you'll get less free money now and you might have to swallow your pride. But right now grocery stores are hiring. In a few months people will be begging for those jobs.

  2. I know of multiple people for whom this is also the case. And they (the Keynesian and behavioral economists) say that putting a price floor on wages doesn’t alter unemployment...

  3. The Idiocracy continues it mindless support of the swamp while in many cases having no clue that they do.

  4. I guess some TB infected turd world immigrants could take these jobs according to libertardian open borders theory.