Mnuchin on $600 unemployment benefit: We can't be 'paying people more to stay home'

Treasury Secretary Steven MnuchinSteven Terner MnuchinTrump tees up executive orders on economy but won't sign yet Overnight Health Care: Trump to take executive action after coronavirus talks collapse | Vaccine official says he'd resign if pressured politically Coronavirus talks collapse as negotiators fail to reach deal MORE on Sunday threw cold water on the prospect of extending $600-per-week unemployment benefits for Americans for the duration of the COVID-19 pandemic.

In an interview with ABC's "This Week," Mnuchin suggested that the payments, which expired last week, led to some out-of-work Americans being "overpaid" and indicated that he believed they were slowing the return of workers to the labor market.

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"Unemployment is supposed to be wage replacement, so it should be tied to some percentage of wages," he said. "The fact that we had a flat number was only an issue of an emergency where we had 30-year-old computer systems."

"I think on the concept we absolutely agree on enhanced unemployment," Mnuchin continued. "We want to fix the issue where in some cases people are overpaid, and we want to make sure there's the right incentives [to get back to work]."

"In certain cases where we're paying people more to stay home than to work, that's created issues in the entire economy," he added. 

Democrats rejected a short-term stimulus deal from Mnuchin and White House chief of staff Mark MeadowsMark Randall MeadowsTrump tees up executive orders on economy but won't sign yet On The Money: Five takeaways from the July jobs report Overnight Health Care: Trump to take executive action after coronavirus talks collapse | Vaccine official says he'd resign if pressured politically MORE last Thursday. The exact provisions of that package were not made public but included a temporary extension of unemployment benefits, according to Meadows.

President TrumpDonald John TrumpJoe Arpaio loses bid for his old position as sheriff Trump brushes off view that Russia denigrating Biden: 'Nobody's been tougher on Russia than I have' Trump tees up executive orders on economy but won't sign yet MORE and other white House officials have urged Democrats to agree to a short-term stimulus deal while Senate Republicans debate over the specifics of a longer-term package. Federal unemployment insurance payments totaling $600 per week expired on Friday, with no extension for the benefits in sight as millions of Americans faced rent payments on Aug. 1.