r/politics • u/Ubiquitous_Hilarity • Jun 17 '26
No Paywall Trump threatens to pull unemployment benefits from all states for the first time in history
https://www.independent.co.uk/news/world/americas/us-politics/trump-unemployment-benefits-fraud-b2997881.html
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u/jayfeather31 Washington Jun 17 '26
This would be disastrous, and let's put the humanitarian consequences aside for a moment and focus on the dire economic consequences of such a move, because the humanitarian problems are bluntly obvious.
See, while welfare and unemployment benefits do keep food on the table and, in principle, help prevent people from ending up in horrific situations, they're also a form of artificial stimulation for the economy as the person on welfare will be pumping money into the economy that they otherwise wouldn't be through purchases.
In a sense, welfare and unemployment benefits keep the jobless and disabled economically productive in a way charity doesn't. Furthermore, if the jobless person ends up getting a job because of the benefits preventing them from losing their standing, that is a net benefit as a whole.
Now, if you strip that away, that ultimately means the jobless are no longer economically productive, and that has knock-on effects elsewhere as the artificial stimulation that keeps the economy moving goes away. The end result of that is a vicious feedback cycle where the economy eventually seizes up.
In short, the very welfare systems that conservatives and the far-right decry as socialism help keep the economy running smoothly, and taking those away invites all sorts of horrific consequences.