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Study: Biden’s Unemployment Bonus Held Back Economic Recovery

January 03, 2022

Democrats’ enhanced unemployment benefits reduced employment and are holding back our economic recovery, according to a new study. Economists studied unemployment data in the 18 Republican-led states that ended the $300 weekly bonus and eligibility expansion in June–both of which had been extended as part of Democrats’ partisan $1.9 trillion so-called “stimulus.”


From the Wall Street Journal:


“Democrats may have undermined their welfare-state expansion with their $1.9 trillion pandemic spending splurge last spring. The enormous transfer payments reduced labor supply while pumping up consumption, contributing to inflation and falling real wages that gave Sen. Joe Manchin good and ample reason to reject the Build Back Better Act.”



  • ENDING UNEMPLOYMENT BONUS BOOSTED RETURN TO WORK BY 14 PERCENTAGE POINTS: “Using data from the Bureau of Labor Statistics monthly household survey, they estimate that early termination of these two programs was associated with a 14 percentage-point increase in the flow from unemployment to employment in July and August among 25-to-54 year olds (using February to June as control period).”
  • UNEMPLOYMENT WOULD HAVE BEEN LOWER IN AUGUST IF DEMOCRATS HAD ENDED BONUS IN JUNE: “(T)he unemployment rate among prime working-age Americans in the 24 states that maintained the richer benefits through Labor Day would have been 0.7 percentage points lower in August had they ended benefits in June. The national unemployment rate would have been 0.3 percentage points lower had all states ended benefits early.”
  • COVID UNLIKELY TO BE KEEPING WORKERS AT HOME: “[T]he fact that unemployment claims are falling even amid the fast-spreading Omicron suggests that the virus may not be as important as many believe.”


CLICK HERE to read the full editorial.



Despite evidence that Democrats’ $1.9 trillion “rescue” package last year neither stimulated the economy nor focused on crushing COVID, Democrats continue to push for policies in their next $5 trillion spending bill that hold back our recovery, raise taxes on job creators, and keep Americans from reconnecting with work. 


READ: Democrats Are Stuck on Anger, Denial Stages of Grief for $5 Trillion Bill


Democrats’ trillions in welfare spending has devastated our jobs recovery and failed our most vulnerable families.

  • Research from the University of Chicago found the Democrats’ proposed Child Tax Credit expansion would lead 1.5 million workers to exit the labor force – another devastating blow to Main Street businesses struggling to find workers.


Families and small businesses are struggling under Bidenflation fueled by President Biden’s spending.

  • The San Francisco Federal Reserve has found that President Biden’s so-called “stimulus” earlier this year contributed to inflation and worsened the labor shortage. (Analysis)
  • Americans are facing the fastest rising prices in 40 years thanks to Bidenflation burning holes in family budgets.
  • Small business owners are getting crushed by Bidenflation and tax hikes too, with prices rising to historic highs and a record number of small businesses being forced to consider price increases, which are passed onto consumers.


WATCH: Democrats’ Recipe for Higher Inflation