Economy

Continued Lockdowns Largely to Blame for California’s Unemployment Debacle

Written by Nicholas Vetrisek

The California Employment Development Department (EDD) has been beset with problems for months now, and the situation is only getting worse.

The department recently began accepting new claims after a two-week hiatus, but unemployed Californians have reported even more issues. Californians are now claiming that the department froze their accounts and credit cards, and they are no longer able to access their benefits. In addition to not being able to access the money from the unemployment department, many have found that the state has entirely drained their bank accounts.

The reason for this is a separate fraud investigation from the EDD that accidentally targeted legitimate accounts. This overlap was something that Gov. Newsom’s strike team said the agency should avoid.

Newsom could quickly fix the Employment Department’s constant controversy if he ended the lockdown. When unemployment is at 11 percent and millions are forced to rely on the government to survive, it’s no wonder that the agency struggles under the weight of all of the claims.

There is no reason to keep the state closed down at this point. All that continuing the lockdown would accomplish is forcing more Californians onto government assistance, while overburdening the Employment Department and causing more significant errors.

 

Photo by Jernej Furman via Flickr