Extended Unemployment Benefits Impose Unconscionable Burdens

Reinstating emergency unemployment benefits, as President Obama urges, would slow growth and impose unconscionable burdens on the working poor.

State governments provide a basic benefit averaging $300 per week for 26 weeks. During the Great Recession, Washington financed additional benefits for as long as 99 weeks.

With the recovery in its 55th month, the emergency is over. Another extension would make long-term benefits de facto permanent and create another entitlement. Republican leaders are correct to insist Democrats identify equivalent spending cuts or new sources of revenue.

Advocates argue those benefits provide the strongest economic stimulus, because the unemployed spend whatever money they receive on necessities. However, their supporting studies assume other federal programs are not cut or taxes are not raised to finance benefits.

Cutting other outlays, for example on roads and schools, would have an even bigger negative impact on GDP and jobs than failing to again extend unemployment benefits would, because some of the latter would not be spent but would rather be used to pay down credit cards and other debt.

Additional taxes to pay for more unemployment benefits would impose a terrible burden on the working poor — the very folks Obama constantly reminds need the most help.

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