Cutting payments could slow growth, bringing more job cuts
While the political debate over providing jobless benefits for out-of-work Americans has been divisive, the economics are pretty clear-cut. With the economy showing signs of faltering, cutting off checks to millions of consumers could slow spending, weaken demand, and put even more people out of work.
After two failed attempts, the Senate is expected to vote again Tuesday on a measure that would restore benefits for more than two million workers who have been laid off for long stretches.
Democrats have argued that with the long-term unemployment rate at historic highs, the government has an obligation to provide for people who are out of a job. Republicans have counterargued that at a time of unprecedented budget deficits, the government can’t afford to take on more debt. With the fall election approaching, polls show voters divided on the issue.
The argument is moot for jobless Americans, who want a job with a paycheck to spend.
“When demand is as slack as it is now the worst thing you can do is make it harder for consumer to make a purchase,” said Ross Eisenbrey, an analyst at the labor-focused Economic Policy Institute. “If you took all of the (unemployment) benefits out of the economy, you wouldn’t put anyone to work. All you’ll do is suck demand out of the economy and make it more likely that employers will lay people off.“
The House already has passed a bill to maintain benefits through November, at a cost of about $34 billion. The money would be borrowed, adding to the national debt — now roughly $13.2 trillion. Republicans have pressed to have that cost paid by shifting funds already approved for other stimulus programs.
"Everyone agrees on extending the additional unemployment insurance, but the Democrat way is to insist we add it to the national debt at the same time, while blocking Republican efforts to pass the same extension without the debt," said Don Stewart, spokesman for Senate Minority Leader Mitch McConnell, R-Ky.
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Pelosi bragged the other day-- the first thing she did when she became Speaker was to pass PAYGO.
ReplyDeleteBut from then on, she ignored it.
Have you noticed? Everything is an EMERGENCY--exempt from PAYGO.
There are funds remaining in the Stimulus Slush Fund- use them, instead of borrowing more from China to pay people to sit home for 2 years and watch Oprah instead of getting serious about finding a job.
If I can get 2 years of unemployment, why in the world would I work?
So tell me... How many people and for how long can the unemployment insurance fund handle? I hate to see people hurting but we're broke, my wife and I are working 120-160 hours a week to keep our heads above water and are being taxed to death so people can take their unemployment & welfare checks (freedom cards) to casinos and liquor stores.
ReplyDeleteThe right loves to bash the unemployed even in the face of the greatest economic collapse that most of us have seen in our lifetime. I also disagree with extending benefits, but don't kick people while they are down.
ReplyDeletePay folks to not work with money you don't have. Not a good idea. If you don't believe there are jobs out there, ask yourself why are so many illegals risking their lives daily pouring across our borders. The main differences are they work for prevailing wages, don't pay taxes to help support the Barack giveaways, and are willing to give an honest days work for an honest days pay. Anyone that's been unemployed this long needs to learn a lesson from those taking their job.
ReplyDeleteI do not want to be unemployed. My employer downsized and my job was eliminated. I have sent resumes for every job that I am qualified and have skills for. I read about them in the Daily Times, The Guide, and other local online sources, or have heard about by word of mouth. I do not want to post my personal information online. Forget about Craig's List, when I first became unemployed I was sending out 5-6 resumes a day and not a word. At least from the local sources, I am hearing some responses that they have my resume or at least I get called for an interview. The person I interview with always says they have been overwhelmed with responses, so somebody is looking for a job. I know there are always those who sit on their a***s and they will move from unemployment to welfare just to keep from getting a job. Don't say go to Walmart and get a job. I am a single parent with a mortgage, taxes and bills to pay. Unemployment is paying more than Walmart due to my salary from my previous job.
ReplyDeleteI don't believe there should be any more unemployment extensions. I was unemployed, not my fault, and could not draw unemployment according to MD. I finally found a partime contractual job, making less money than my previous job. I cannot according to MD law draw unemployment between contracts to fill in for loss wages. So I don't feel sorry for anybody that has been drawing unemployment and now they will be cut off. I too have a family to support, daily expenses, and a mortgage, for now, and I have to figure out a very strict budget to survive. So go get a job even if it pays less and support your family. Sounds like you want to take more from me and someone who is scraping bottom to support your lazy A$$. Besides nobody should have internet if they are that bad finacially depending on unemployment to support their family. So who do you all complaining think you are fooling. If you want my sympathy then let me draw unemployment for 4 months out of the year. I pay in every check I get for your lazy A$$ and get nothing in return but less money for my Family.
ReplyDeleteThat is the problem, unemployment pays too well. It shouldn't pay more than Walmart. So, instead of people working, they are refusing to work jobs that pay less than unemployment. Work at Walmart and another job if you have to. Wait till everyone is covered by government healthcare, there won't be any reason to get a job then. Unemployment should be the bare minimum to get by for a short period of time.
ReplyDeleteGlad everyone thinks that everyone can just up and get a job at Wal-mart.
ReplyDeleteSome of you people need a clue.
I to am a single parent and my situation would be a dito for 5:46.
ReplyDeleteWith the exception of 5:06, You are all wrong on so many levels and for so many reasons. Not everyone's situation is like yours and the "solutions" you offer are not solutions at all. Do you even have a clue how much you get in unemployment? From MD UE page: "your WBA will be approximately one-half of your gross weekly wage up to the maximum weekly benefit amount" Read that carefully, it does not mean you get half your pay, it is taxed and Maryland is NOT one of the 99 week states mention in all the articles.
The reality is if things do not turn around soon I fear the level of experience set in 1929 might be far surpassed. If this extension is not passed to give those of us who are on unemployment the time to make it to when it does turn around it will be a certainty. I am old enough to have been through the other recessions but nothing like this. The jobs are just not there this time. It is not a question of "refusing"to work for less. It is a question of having enough to eat AND have a roof over our heads.
Why don't you negative commenter s do something constructive and meaningful for a change. Say a prayer for this country, say a prayer for the people TRYING to find work, and say a prayer thanking the Lord for what you HAVE. Anyone of us that has lost their job can tell you, you are closer than you think to losing it all and you would not be so negative if you truly appreciated how precious it is.
11:54, I'm praying for you. Hopefully your comments will help others gain a new perspective; I doubt it.
ReplyDeleteMy mother lost her job (owner retired/business closed) of 15 years, where she worked her way up from washing dishes/bussing tables to managing the establishment. She was on unemployment for about a year before finally finding a job (Walmart cust. serv. manager) at which time she still made only enough to live pay check to pay check, and we still had to use some gov. assistance (medicaid, WIC time to time)despite her working 50 hrs. a week dealing with Wal. customers (you can imagine how this can be). It took her close to 10 years to finally find a job and salary commiserate with her experience level and skills. Despite her story, the right-wing loons on this blog would quickly paint her as some kind of free-loading welfare queen in a cadillac because its easier to feel good about their precarious situation (as 11:54 mentioned) when you can look down your nose at someone else with disdain.
So many of you ultra right loons remind me of why slavery was such a "peculiar institution". While most whites were relatively poor and never owned a single slave, the elites sold these whites on the idea that they were superior to the those slaves who "didn't have it so bad afterall with their free food and housing.
8:07 AM
ReplyDeleteI would say your mom did it the right way by working and receiving some assistance to help get by. Then you give the typical left wing-nut response with tying those who oppose extending benefits to slave owners. I have a good pretty secure job with a master's degree and I still live paycheck to paycheck. If I lost my job, then I would have to radically change my lifestyle. No more premium cable TV or cable TV at all, do away with my cell phone, no more eating out, and maybe selling my house if need be (although my mortgage is less than what people pay for rent in Salisbury because I didn't buy a house I can't afford. I want to move out of Salisbury, but it isn't a smart move right now economically.). People think today that they should continue living at their current standard of living when they are living on unemployment, when actually they should be cutting back.
Unfortunately, Maryland and the current Federal government are focused on punishing businesses who create jobs, instead of helpiung them out. I know a business owner who says he won't hire anyone until he sees how the new health care bill is going to effect his business. The national debt is a real problem and if they can extend help to people without increasing the debt, I would be OK with extending the benefits. It's like being out of work with $10,000 of credit card debt, and then getting another credit card to live on.
9:44, sorry you missed the analogy, although you make good points. I'm speaking towards the often voiced conservative mindset that most/all/a majority of people recieving aid simply want to free load off the system, a theory that is perpetuated by conservative political leaders/pundits and some of the rich elitist. Most of those who follow this mantra are only one paycheck from being in the same boat as those recieving aid today and indeed this recession has forced many of them to become apart of the welfare crowd. All of a sudden they realize "hey, maybe I was wrong" once they are put out of work and can't find a job.
ReplyDeleteI'll agree that the majority don't freeload off the system. The problem is the same majority won't ask for reform against those who are cheating the system because they are afraid that they will be somehow penalized as well. Bottom line is that people do cheat the system and they hurt those who legitimately need help. I say everyone must log 40 hrs/week of community service to receive unemployment. Others work 80 hrs/wk, so they can do their service then go look for work on their off time. I bet there'd be less cheaters.
ReplyDeleteIf you saw the number of people
ReplyDeleteI do on a weekly basis abusing the system you would understand why we cannot extend unemployment benefits any longer.I have been told to my face by one of them that they "would not work anyplace for just $8 an hour" Well,if you cut off the government gravy train,they wouldnt have a choice other than to take whatever job they could get like myself and the rest of us.The irony is that if you are on unemployment the state will pay for them to go to school-if they were serious about "wanting a job" why arent moe of them taking advantage of it????They dont even have to search for jobs to get their check if they go to school!!!!!
I want every voter to read 5:14's comment. That's the view of the Republican Party. Did you lose your job? Too bad, you get screwed. And we'll keep the tax cuts for the wealthy even though we just gave them $700 Billion in a bailout.
ReplyDeleteVote Republican! Keep the rich rich and the unemployed screwed!