WEST MONROE, LA. (08/04/2020)– Federal unemployment benefits under the CARES Act expired Friday, July 31.
Darren Oglesby with Oglesby Financial Group said there doesn’t seem to be a question of if there will be a replacement, but rather how much. The House of Representatives is proposing we continue the $600 a week through the end of the year.
“Where the senate is proposing that we lower that to something that’s more in line with a percentage of what someone would normally make,” Oglesby said. “As opposed to paying them more than they would normally make just to sit at home.”
The White House is looking to reduce the figure to $200 a week and put more stimulus money directly towards small businesses.
“If we don’t keep the small businesses in business, whether through demand, spending, or some of the stimulus, ” Oglesby said. “If they go away, there’s nobody to hire the very people back that are getting these unemployed benefits. Seventy percent of this US economy is dependent on consumer spending.”
Right now Congress has not agreed on what to replace the benefit with. Oglesby said even if they decide by Friday, it’s going to be three to four weeks before out-of-work Americans see any checks.
“If you’re on the recieving end of this, you just have to depend on the fact that other help is coming,” Oglesby said. “That the house and the senate both agree on that. You have to be patient enough to have the assets, if you will, of the resources until that check comes in.”
In the meatime, Oglesby said Tech-related stocks like Microsoft and Apple continue to spike.
“So we are in a scenario where the economy is in poor shape because of COVID-19, but not necessarily the stock market. It’s thriving and hitting all time highs,” Oglesby said.
On Monday, the NASDAQ closed at a record high, led by Microsoft, who is looking to buy TikTok.