Some states are saying NO to the federal government in an effort to get people back to work

May 12 — If you’re getting $300 a week from the federal government in unemployment compensation because of the pandemic, you may be thinking you’ve got a sweet ride, lying on the couch, surfing the web and watching Netflix.

But the reality is, nothing about this is sweet.

Especially in terms of the future of the country.

Businesses everywhere are feeling the strain of not being able to get people to work.

Wawa is saying they’re going to have to shorten the hours they are open because they don’t have anyone to run the stores.

Sheetz is raising their pay rate an additional $2 an hour, with another $1 raise promised for the summer, because they can’t find people to work.

Local restaurants are closing down a few days a week because their staff is making more money staying at home and living on the manufactured money from the federal government.

But from an economic standpoint, this magic money is going to really hurt the economy in terms of inflation — which means prices will rise.

Interestingly, Republican governors of five southern states are declining the government’s $300 weekly unemployment bonus in order to get people off the couch and back into the businesses that so desperately need employees.

The number of states saying no may be even higher than that.

Attorney Clint Barkdoll, Pat Ryan and Michele Jansen discussed this major economic issue this morning on First News.

Ryan said, “This is unsustainable. You’re borrowing against your kids and grand kids.”

Barkdoll agreed, “This is almost like a contagion. This problem is going to keep growing unless the state cuts off these benefits.”

The real knife to the gut here if you’re a local business is the federal unemployment benefits extend through September 30 of this year.

What on earth does that mean for the next few months?

Jansen said, “When you pay people to stay home and then they use the excuse, ‘oh look at the labor shortage, we have to bring in more foreigners to come in and take these jobs.’ No you don’t. It’s the idea also about the minimum wage. If they would stop allowing cheap labor from illegal immigration, when employers have a lack of people to fill the positions, they raise the salaries. It does work. The market would take care of it, but it’s this horrible policies on our southern border by both administrations, Republican and Democrat, that have caused so many problems. I think this really highlights it.”

Fast food chains are offering $50 just for people who come in for an interview — you don’t even have to get hired to get the money. Other restaurants are offering free appetizers.

“That’s how desperate the situation is around the country right now,” Barkdoll said.

Ryan added, “It’s not just in the restaurant industry. We have been trying to find the right match for the afternoon program here for months and not being able to find that perfect person. And the professional category — some folks are looking for help at the Morrow Group. It’s accounting, it’s all sorts of layers.”

Jansen said, “Kudos to these governors who are saying no to the federal government. And shame on the federal government for putting that system in place. It’s hurting people so badly. People think, ‘oh I get to sit home and get money.’ No, you’re getting money they’re printing, so your money will be worth less in a couple years. Some are even predicting as much as 50 percent less if we keep going at the rate of inflation we’re seeing.”

Barkdoll added, “Some are predicting that it may be the biggest inflationary gain in a decade and that would be just the quarterly number. You can’t just drop $6 or $7 trillion out of the sky onto this country and not expect us to pay for it. I think that’s what you’re seeing now come to fruition in the form of inflation and these wage and employment issues we’re talking about.”

A whole lot of contracts are tied to the CPI, the Consumer Price Index — maybe more than anyone realizes.

Barkdoll explained, “There’s going to be a very real effect when you go into the grocery store, but there are local municipal contracts and social security, private business contracts. Often times the products or the wages of people are tied to the CPI. If that starts going through the roof, all of that is going to just keep getting passed right back on to the end user, whether that’s the consumer or tax payer.”

The bottom line? We need a work force in this country to keep the economy on stable footing.

Otherwise every one of us — even those enjoying their Netflix binging — are going to suffer.