The Senate Struggles with Unemployment Benefits
When the Senate returns next week, it must confront a bit of unfinished business—what to do about extending unemployment benefits. As fans of the ongoing soap opera that is the World’s Greatest Deliberative Body already know, the Senate failed to pass the unemployment bill before rushing out of town for its Fourth of July holiday. And just before the Labor Department issued a discouraging report that suggested private job creation may be slowing.
As you might expect, the headlines describing the senate's inaction were not flattering. Efforts to extend jobless aid for up to 20 more weeks stalled when nearly all Republicans (and one Democrat) refused to vote for it unless its $34 billion cost was fully funded. Some lawmakers also opposed the extension on the grounds that it would encourage the unemployed to stay out of work longer. Neither of these arguments is pursuasive, especially given the Senate’s parallel effort to extend $32 billion in special interest tax subsidies.
It is pretty clear the economy still cannot stand on its own feet, and nearly all analysts agree that unemployment benefits are a strong stimulus. Recipients generally spend the assistance ($300-a-week on average) immediately, which boosts the rest of the economy. It is hard to fight the humanitarian argument either. About 2.5 million will lose benefits if Congress does not extend aid by mid-July. Many of these folks are in serious distress. No job. No health insurance. And right now, no prospects.
It is true, as well, that those receiving benefits are somewhat less likely to accept a job offer than those whose aid has run out. However, most researchers find this effect is small, especially when jobs are very hard to get, as they are now. With work so scarce, few will turn down a job offer for the temporary pleasures of $300-a-week.
The funding argument is even harder to swallow. I’d be more sympathetic with these new converts to fiscal responsibility if they were as enthusiastic about paying for extending $32 billion worth of special interest tax breaks as they are about funding the unemployment extension. If I understand correctly, these lawmakers insist that Congress fund every dime of added jobless aid, which nearly all analysts agree will help boost the economy. But they feel no need to pay for continuing these special interest tax breaks, which will not. They fret about unemployed workers who allegedly game the system to get jobless benefits but seem undisturbed by those businesses and individuals who do the same to maximize their tax subsidies. Politics is indeed a funny business.
If any one has a job for me call Kevin at 972-966-9005
I agree! I have over 200 resumes out and not to mention the phyiscal apps I have put in….I applied to whataburger for a jobe and the manager told me that he could not hire me because looking at my previous wages on jobs that he knew I would not stay as soon as I found a better job so why hire me! I live in a at will state or right to work state and employers exploite this law! I have clean tattoos nothing vulgar…..wich in my normal work don't matter. Iset up coldheading machine that make screws and bolts. I applied to Waffle house and thet refused to hire me because of tattoos. The point is tattoos dont make the person, and I was willing to work for 7.25 an hr to just have a job and not depend on unemployement my unemployement has kept me from living in my truck and keeping my cell phone on and living in a low cost motell cuz no one will rent to some one with out a job!
EXCELLENT! This is accurate reporting of the circumstances that jobless Americans are facing today. Great job on your research, and in exposing the ungly truth of our Senators lack of integrity in their resposibility to their nation's people.
These Senators could learn a lot from these unemployed Americans. The unemployed people I have met, are hard working people who have a conscience and would not think of behaving irresponsible in their jobs, as these Senators have.
I am writing as one of the millions of Americans who have, or are near to exhausting long term unemployment benefits. It is with the utmost sincerity that I ask for an explanation, why politicians must engage in political gamesmanship, when so many citizens in this country are losing everything, and are now incapable of feeding their families, let alone providing shelter.
I have been working since I was sixteen years old, and am now fifty-five. There are many like me who have worked all their lives and never filed for unemployment benefits. Now, because of financial greed and lax bureaucratic oversight, our country was plunged into a disastrous recession that saw millions of jobs terminated almost overnight.
Worse is when politicians lay blame upon the victims and claim they are lazy and undeserving of assistance. Let those ignorant politicians try to make mortgage payments, car payments, feed their families, pay utility bills, and buy gas for their cars, all on $300 per week. Would any reasonable person actually believe that we would rather choose unemployment handouts as our debts spiral out of control, and we lose everything we’ve worked hard to earn over many many years?
We want jobs. We want to earn a decent salary like everybody else, but everyone on Capitol Hill knows that there are no jobs. Corporate America is hoarding cash like there’s no tomorrow, and small business is being squeezed in a credit crunch because banks are loath to part with cash unless the applicant is a golden goose.
So where does that leave the fifteen million unemployed? It leaves us dependent on the unemployment checks each week just to survive. Now that payments have been cut off, it has symbolically carved away a portion of the US population. We are excised like cancerous cells before we do “harm to future generations”.
Those with the means, don’t want to think about us. We are marginalized as unimportant and a drain on good tax paying citizens.
Least we forget, a European country, decades ago, treated a significant portion of their population in much the same way. Through the rhetoric and propaganda of the times, it became easy for the general populace to view the victims as subhuman and unworthy of sympathy or empathy.
They were marginalized to the degree that when the government enacted unspeakable acts against them, the general population found it easy to turn their backs and blame the victims.
I served my country in the Army many years ago. I have always been proud of my service. Today, I have been so demoralized by my elected officials that I would never agree to “protect and defend”. There are two Americas today, and millions like my family and me are no longer members of those worth saving.
Why can't we fund it with the 2009 stimulus funds not yet expended (these funds will actually stimulate the unemployed)?
I would encourage anyone on extended unemployment to share your story with your member of Congress and Senators today. Even if they are for the extension, it is good ammo for the debate. If they are home for the July 4th recess – find out their schedule and tell it to them face to face. Get up at a town meeting so that they must respond right away. If they are against, bring friends and scream at them – making sure you tell the press you are coming first.
Everyone who favors extending these benefits (which are necessary) should tell the Democrats that the only appropriate offset is an increase in the UI payroll tax paid by employers who have laid someone off. A general UIT increase should also go through to increase benefits – they have been at $300 for too long – they need to go up to $500.
Employers are making money – largely by shedding people. Their calculus needs to change to make layoffs far less attractive.
Or the GOP can avoid this debate and fund benefits quickly and quietly. The Democrats should give them no choice – UI tax increase or debt financing. Make it their final offer and see how quickly they geek.
No, it has to do with both. If you don't think so, send half your money to the TPC and see if it impacts your need to use your credit cards to live on.
You are right that the “vote 'em all out” approach is extreme and narrow-minded. However, I respectfully submit that you are wrong that “only one party is trying to solve problems”– neither party is. Both are more interested in posturing and pointing fingers than solving problems and compromise. I didn't see where 58 Democrats each refused to take their lengthy vacations to solve this problem. I didn't see where 58 Democrats each agreed to address their counterparts' concerns so that this problem can be solved.
Being unemployed, I'm not taking vacations of any kind. But, even when I was working, I cut short weekends or postponed vavactions when there was important work to be done.
Make no mistake–the blame lies with both parties!
Since those in Congress have NO idea what it's like to not have a job & therefore, no money coming in AND will have medical ins & a paycheck for the rest of their lives……………….how in the world can they judge all those out of work & on enemployment (most of the time thru no fault of their own).
Would they go without pay for a year or so………….I think not!
To me an extension for unemployment is a no brainer.
I could have written the posts from Jennifer and Bill myself as they describe me too a tee as well. I am (was) a professional, but have been unemployed for 18 months. I am almost always over-qualified for what's out there, and sometimes under-qualified when I'm competing against other unemployed professionals who have more expertise than I in a particular area. There is no way to tweak my resume so that it doesn't send the message to potential employers that I'll be gone in 6-12 months when something in my field eventually comes along. I spend much of my time caring for my kids, not only because of the cost, but because my wife is now working twice as much as she used to. For the previous 25 years, my employers were paying into the unemployment system with revenue generated from my work (which is the more accurate way to put it when you get that argument from the nay-sayers). Therefore, I agree with most of what has been said regarding whether Congress should extend benefits and do so yesterday.
I want to add one more thing to this conversation, though. I am tired of, and insulted by, those who argue that “abuse of the system” or encouraging laziness are reasons for not extending the benefits. While I am not so naive to believe there is no abuse (because there always is), what politicians on both sides of the aisle seem not to get is that the VAST majority of folks on unemployment would like nothing better than to get backto work and are busting their humps to get there. It is ludicrous to believe that any reasonable person would prefer to sit on their duff and a collect a few hundred dollars a week, while their spouse and children suffer and at the risk of losing their home and everything else they've worked for. Nothing gives me more pain than to have to say to my kids they can't do the things they used to do and, not only that, daddy can't play with them right now even though I'm home because “I'm working” (at getting a job).
Moreover, are the people who make this argument relying on facts or the mere assumption that there is some abuse? If the latter, put a sock in it and get back to me when you have some facts. If you have facts, or when you get some facts, the solution is simple — REPORT THE ABUSERS! Or, if you don't want the government to spend money now investigating the abusers, then THREATEN TO REPORT THEM if they don't stop committing insurance fraud. I'm tired of hearing people make they argument that they don't support the extension because they know 3 people in their neighborhood abusing the system. If that's true, then do something about it! It's free! . . . at least, unless and until you have to follow through with the threat.
If you're not willing to do this, please stop insulting me and the millions of people actively looking for work by saying we should lose our benefits because your neighbor is a deadbeat.
This is ridiculous that these people can just play with the economy however they like. They are not concerned because they are not unemployed, but I wonder what would happen if the shoe was on the other foot? Would they be so confident then. I'm so tired of the rich getting richer and the poor getting poorer. Jobs are hard to come by and this just makes me sick!!
To those who say “vote out all of 'em” – I wish to direct you to the line where it says who voted against extending the benefits. If you're so mad at Congress that you'll vote out the 58 Democrats who were voting to extend the benefits, then I don't know what to say to you. I guess you'd cut off your own nose to spite your face. It's becoming abundantly clear that one party is trying to solve problems, the other party is trying to stop any progress/action at all.
Make your choice this fall, I guess… I don't have much faith in our electorate to make the right decision.
Just a question to the Lawmakers.. How much did unemployment decline the past two weeks as I quote from the statement in the above article ” Some lawmakers also opposed the extension on the grounds that it would encourage the unemployed to stay out of work longer” Lets take a look at the numbers that reflect this statement…how true is this?
I wish that the lawmakers and the congressman that make these decisions would take a walk to the nearest office that provides assistance to those that are seeking employment and can't find a job due to the fact that there are more qualified candidates per jobs that are available. Why not look at these statistics through the labor market in counties through out the states to see what the ratios are as well as get in a job seekers face who intensely searches to find employment for months to provide for themselve and their families. I would like to see a politician tell some one no you are really not looking for work.
I wish that politicians would take a look at this issue realistically for the average person looking for a job.
I just read on another site that the Senate will be taking a month-long recess starting on August 1st. I'm sick to my stomach – can this possibly be true?
Great article! As a Republican I too believe in fiscal responsibility, but my party needs to do a better job of picking its battles. The unemployment benefit is a no brainer. There is no choice. This petty fight is effecting millions of people directly. Not like many of the programs that get funded. And trust me, no one is happy to trade their $2,500 per week job for $300. So that stupid argument holds no water. These are times such as I have never seen in my 57 years. And this includes the aweful Jimmy Carter era with 22% prime rate interest and 16-18% mortgage rates. Too many younger than I don't know of this time. We went into a government induced recession in the first two years of Reagan's term. This was the only way to stop the bleading. So when I hear of ANY comparisons to the 10% unemployment we experience then, again only idiots would draw this comparison. Reagan told us it was going to hurt and exactly what was going to happen. Then, it turned, just as he said it would. Single digit interest rates and 5-6% unemployment. There is no sign this one is going to end soon because this administration is doing exactly opposite of what it should to turn it. Lower taxes and reduce the burden on businesses and let them flourish. I wish us all well…but looks rough for a few more years.
I am employed and I am 100% for extending the unemployment
bill. Anyone employed or not employed that doesnt support
extending unemployment is a fool!! For those of us that are
lucky enough to be employed won't be for long if this bill
does not pass. It is simple economics for every dollar of
unemployment money paid out one dollar and ninety cents is
put back into the economy no other stimulous or program comes
close to this. If the bill doesnt pass it will create an
instant domino effect to the nation more layoffs crime rate
will sore suicides will become a common household everyday
thing. Congress is worried about passing the deficit on to
our children First we have to be able to feed our children
before we can ever pass anything on to them.
Senator Thune had one of the best unemployment extension
bills I have seen yet and it was fully paid for and supported
by most republicans but here is the one reason Congress will
not ever pass it…..
•The amendment saves the taxpayers $113 billion in
unnecessary spending by rescinding $38 billion in unobligated
stimulus funds, cutting wasteful and unnecessary government
spending, collecting the unpaid taxes of federal employees,
freezing their salaries and capping their numbers, imposing a
five percent across the board cut in government spending for
all agencies except the VA and DOD, and creating a new
deficit reduction trust fund where rescinded balances and
moneys saved through this amendment will be deposited for the
purposes of paying down the federal debt.
Congress does not like the idea of freezing their salaries
and having to pay the back taxes they owe!
TO ALL DEMOCRATS AND REPUBLICANS ELECTION TIME IS COMING ….and I am employed
Signed
An Employed Native American
I understand your frustration. I have been applying for every possible job including Wal-mart, and McDonalds and still have not been able to land a job. I worked in the construction feild for over 15 years up until Sept. of 2009 and was laid off and now my unemployment benefits will run out next week. I can't believe that Congress would not be able to come to a decession before they left on vacation. They truely are just looking out for themselves. Without my unemployment benefits I will not be able to pay rent, resulting in me becoming homeless. This is a very stressful time in my life and I'm sure in many other peoples lives as well.
Well said! I, too, have paid into unemployment for more than 40 years holding down jobs even when it was more appealing to just not work and pay those taxes. However, I DID pay the taxes and now that I need to see some of that to assist through just a hard time, our government wants to play God! It is time to vote them all out.
I so hope that those senators are enjoying their “MUCH NEEDED” vacation. I am sure that they are not worrying about if their power will be shut off or if they will have a home to go to. I LOVE the compassion in this world.
I heard on the radio some talk show host talking about how much to too much unemployment. Well, HOW MUCH IS TOO MUCH WELFARE is what I want to know. How long are the drug dealers going to live off of us and get everything that they should pay for for free!!!!! I am sick of supporting them and their families. They get everything, pay for nothing, do not work for nothing and teach their kids how to live off of the system and us working class can not get an extension of the benefits that we have been paying into for years and years. I am sick of this country. Send the immagrants home and make the welfare reciepients clean the streets, I bet then the welfare rolls will decrease to half of what it is when they actually have to get off their asses to earn the money that they get every month. PATHETIC is the best word for this country and their politics> it sucks.
I have been sending out my resumes almost daily, for 18 months with little or no responses. I am not afraid to work, in fact I want to work. I am tired of being home. Unfortunately, I can't get a job.
I have paid unemployment insurance for 40 years, and now our damm politicians just pack up and go on vacation without extending the benefits that I paid for.
It's time to vote out every one of the bloody politicians, no matter what party they belong to. They are all a bunch of thieves and are only looking out for themselves.
The benefit of unemployment is that it assists a family or unemployed individual with small costs of living. My husband, an architect, has been unemployed for almost a year. He graduated Cum Laude and was employed with well-known firms. He cannot find part-time work because he is (1) usually over qualified (2) employers are looking for longer term employees and not those “biding” their time with part-time work and (3) does not have a flexible schedule as he is now our son's primary caregiver due to the high cost of child care. My husband's unemployment (which will end this week without an extension) is less than half of what he made previously but it allows for him to contribute to our rent and grocery bills. It is by no way a means of living and those who believe that it deters from job searching or acquiring a job are fooled and have not been in this position. My husband has been fortunate enough to go on 3 interviews for a full-time position. Unfortunately at each interview, he is 1 of up to 20 candidates that were chosen from a pool of well over 1000 applicants. We are all concerned about the deficit but there are many struggling now that cannot contribute to the growth of the economy.
i do not understand what is the benefit of unemployment?
One costs money, better to pay for it than run up the credit card and increasing interest payments. The other cost nothing. Yep, you heard me; tax cuts cost the government nothing. That is, unless you believe the money belongs to the government to begin with. Especially with Congress, you know…knowing that they have less revenue coming in, one would think they would spend less. They don't seem to understand that deficit spending has nothing to do with less revenue coming in. It has to do with the amount going out.
The solution is as simple: Add modest means testing to existing non means tested entitlements (Medicare, SS) and spend a small fraction of the savings on unemployment benefits. Stimulus is maximized and the long-term outlook is improved. What's not to like? (Yes, I know, it hurts politically, but it's a winner economically.)