Calling the $600 a week unemployment payment a "disincentive" for workers, the White House is weighing a new bonus payment for people who go back to work, potentially leading to 20% growth in the second half, according to White House economic adviser Larry Kudlow on Newsmax TV.
"The $600, I think that was a mistake – I think that was something of a disincentive," Kudlow told Thursday's "Greg Kelly Reports." "It may have been necessary. I don't want to be so critical. It may have been necessary in March, and April, and even May, but I think when it runs out at the end of July, it will not be renewed.
"We will have some bonus payments for people who go back to work. That is being studied. There are some good proposals in the Senate and in the White House we're going to look at that, so we will try to restore the incentives."
The proposal might even wind up in the Senate's next coronavirus impact bill, which Senate Majority Leader Mitch McConnell, R-Ky., now admits is "likely," after preferring a pause to weigh the effects of the $2.2 trillion relief bill passed in March.
"President Trump is very keen on a payroll tax holiday for the workforce that would cut taxes by 7.6%," Kudlow added to host Greg Kelly, teasing another potential feature to incentivize American workers amid historic unemployment and widespread economic shutdowns.
Kudlow said the key to getting the economy back on its feet remains states and localities reopening businesses and employing workers, regardless of upcoming legislative measures.
"There are some hopeful signs, some glimmers of hope and growth," Kudlow said.
"We agree with the Congressional Budget Office, in the second half of this year, we could see growth of 20% at an annual rate, which would be the fastest growth in American history. That's what we're looking toward right now as we reopen."
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