Under the Coronavirus Aid, Relief, and Economic Security, or CARES, Act,the Pandemic Unemployment Compensation program added a $600 weekly boost to Unemployment Insurance payments. Despite being one of the most effective policy responses to the coronavirus recession yet, the enhanced payments are set to expire at the end of July. The idea that Unemployment Insurance creates incentives for workers to remain unemployed has emerged as the main argument against extending the additional weekly $600, with critics arguing that generous benefits are “undermining the economic recovery.” As this factsheet points out, current labor market indicators show jobless benefits have a negligible effect on unemployment levels. But the enhancements to Unemployment Insurance have a big impact on the economy and have set in motion a virtuous cycle that helps workers weather an economic crisis while keeping demand for goods and services from plummeting. Here are the facts.