These people weren't exactly rushing out and buying Krug and caviar with their $40K/yr pre-tax wage. That's what some tech workers get every month.
[1] https://aspe.hhs.gov/topics/poverty-economic-mobility/povert...
As you say, basically $40k/person, which is more than a lot of people make (think especially of families with part time workers, like students or parents). And with reduced expenses for many: no commute, no other work-related expenses like clothes, often no childcare costs, less eating out and entertainment.
We got about 30% back. One guy in particular came back for about 4 hours before telling us where we can stick it and he was going back on unemployment, anyone of us would have said prior to his vacation he had a good work ethic and never once expressed issue with the job.
As to PPP, we took a very small amount to help keep people on, and two competitors took millions and have now fired a lot of people and moved mfg over to China. So… yea, I don’t think these were the right moves.
But yea, we had people work construction and dock work for cash.
Receiving $600/week in addition to unemployment for 24+ weeks was.
Many hourly workers were making more money than working when you combine $600/wk and unemployment at 30-60% of their regular paycheck.
This dramatically stimulated the economy. And businesses.
And then there are all the PPP funds that equates to 50-75% of a companies annual payroll.
Also dramatically affected companies, and gave a false sense of security - preventing innovating into ‘the new normal.’