April 28, 2020. Tragic. That’s right folks, every citizen of this country owes $75,000 toward the national debt—as of today. It will continue going up. The spending by your corrupt government is way out of control.
IMPORTANT: Today’s market rally has essentially vanished. If you are not able to watch the markets all day long, it is critical that you have sell stops in place that will get you out if the market takes a hit. A decline may not happen today, next week or next month. But you should protect yourself. Just look at today’s action! We are using Trailing Stops.
CARES MAY ACTUALLY DELAY THE RECOVERY
The federal government is doing everything it can do to deal with an unprecedented and frightening period in the nation’s history. It has rolled out programs that will relieve financial burdens on individuals and companies, spur investment, and incentivize employers to keep employees on the job.
One relief package in the CARES arsenal may, however, have unintended consequences. The CARES Act allows for an additional $600 per week to be paid to unemployed people until July 20, 2020. This part of unemployment will be funded by the federal government. This $600 greatly increases the weekly benefit to unemployed individuals, but may also work as an incentive for employees to stay at home, if the situation presents itself.
The table below calculates the regular unemployment benefits by state for an individual.The median weekly earnings, as calculated by the Bureau of labor Statistics was $49,764 per year. This was calculated through the 1st quarter of 2020 using the benefits calculator at https://fileunemployment.org/calculator. TPA then added the extra weekly CARES amount of $600. The total benefits of unemployment are then compared to the regular pay to determine in the individual is economically better off working or filing for unemployment.
Using the BLS median earnings, there are only 6 states in which it would make financial sense for people to work. In 45 states people are better off collecting unemployment. In some states the difference is quite substantial. The $600 per week is not available for a year, but looking at the difference annualized gives a better understanding of the difference. The annual difference in the following states is over $10,000 annualized: Maine $26,780, Connecticut $19,396, Iowa $15,288, Rhode Island $13,364, New Jersey $12,844, Hawaii $12,792, Colorado $11,544, Oregon $11,336, Kentucky $11,024, and Oklahoma $10,348.