"They Demand Unemployment" - Biz Owner Shocked At Angry Response When She Tells Staff Their Paychecks Will Resume

by Tyler Durden

Thu, 04/23/2020 - 19:45

A number of years ago, we first introduced the topic of a 'welfare cliff' at which more work was punished - i.e. the 'generosity' of the package of welfare benefits creates a perverse incentive not to work any harder...

As we wrote at the time, one of the tragedies of America today is that so many adults of sound mind and body do not support themselves and their families. It’s a tragedy not because they suffer material want; indeed, relatively few suffer so, because government assistance satisfies many of their material needs.
It’s tragic because one of the keys to human happiness is earned self-respect, which requires, as Charles Murray has written, making one’s own way in the world. The vast majority of poor people don’t want welfare; they don’t want handouts; they want a good job with which they can support themselves and their families comfortably.

The tragedy of the American welfare system is that it traps so many people in dependency on government, by hindering them from getting on and climbing up the job ladder, and thereby earning self-respect and happiness.
*  *  *
Our fear now, confirmed by excellent research from  Kathy Morris & Chris Kolmar at Zippia.com, is that the 'generosity' of the CARES Act (and the fact that politicians are loathed to remove any policy that could possibly make their voters upset) has the potential to create an entire new generation of welfare serfs, subsisting on significant welfare benefits with no incentive to 'get back to work', even after the lockdowns are lifted.
DoubleLine's CEO Jeff Gundlach appears to agree...

Awareness is growing that the PPP results in many people “making”more money by not working at their prior job. That seriously increases the labor costs of “re-opening”, making it impossible for many small businesses to “re-open”.

— Jeffrey Gundlach (@TruthGundlach) April 23, 2020

And now, as BizPacReview.com's Vivek Saxena details below,  a Washington State business owner faced backlash from her employees after she obtained a forgivable Paycheck Protection Program loan from the federal government that has allowed her to keep them fully paid through the coronavirus pandemic.

In an interview with CNBC this week, salon owner Jamie Black-Lewis of the Oasis Medspa & Salon in Woodinville and Amai Day Spa in Bothell said her employees were furious because they were already “making” more money being unemployed.
And the reason they were “making” more being unemployed was because of a Democrat-pushed provision that was added to the CARES Act.

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