Posted on 03/09/2010 8:40:48 AM PST by kcvl
Millions of Americans have been forced to rely on unemployment payments for extended periods as the nation struggles through its longest period of high joblessness in a generation, and critics are taking aim, saying that the Depression-era program created as a temporary bridge for laid-off workers is turning into an expensive entitlement.
About 11.4 million out-of-work people now collect unemployment compensation, at a cost of $10 billion a month. Half of them have been receiving payments for more than six months, the usual insurance limit. But under multiple extensions enacted by the federal government in response to the downturn, workers can collect the payments for as long as 99 weeks in states with the highest unemployment rates -- the longest period since the program's inception.
The unemployed say extensions help to tide them over in unusually difficult times when jobs are hard to come by. Although unemployment held steady at 9.7 percent in February, millions of jobs have been lost in the downturn, particularly in the hardest-hit sectors including real estate, construction, manufacturing and financial services. Those jobs are unlikely to return even when the economy recovers, many experts say.
But complaints that extending unemployment payments discourages job-seeking have begun to bubble into the political debate. Sen. Jim Bunning (R-Ky.) recently single-handedly held up the latest extension, a bill to keep unemployment benefits in place for 30 more days, saying Congress should find other cuts to cover its $10 billion price tag.
Sen. Jon Kyl (R-Ariz.) did not join Bunning's effort, but he defended his colleague's point of view. Kyl told the Senate he questioned why anyone would see unemployment benefits as helpful to the economy, or to the job market.
(Excerpt) Read more at washingtonpost.com ...
Jeffrey Carlson of Grand Rapids, Mich., a former insurance salesman and father of six, says he is motivated to find work, despite the $1,650 a month he collects in unemployment benefits. That money does not go far given his rent, child support, utilities and credit card bills. Carlson, 44, said he has applied for numerous jobs with no luck and has spent $40,000 in savings.
Carlson, who made $50,000 a year before he was laid off, said watching Bunning and other senators debate whether to extend unemployment benefits was painful and infuriating.
“I paid into the system for 25 years and now I need it,” he said. “People are being put through the emotional heartache and anxiety of not knowing if it’s going to keep coming. There are too many people who need it and are depending on it.”
“The report went on to say that people receiving unemployment benefits tend to plow the money right back into the economy, making them “both timely and cost-effective in spurring economic activity and employment.”
Which big brother eagerly snatches up to repeat the cycle. Money changing hands constantly and not being put to anything productive is not how the economy works.
Well at least this guy needs it. I have an acquaintance who has been on unemployment for at least two years, and she brags that she’s gonna take her loot down to the casinos to play! This woman never married, lived in her parents house, has no bills, etc., and in fact, has a TON of cash put away in various accounts.
I know that unemployment isn’t a “means-tested” benefit, but I sure wish it was, at least in this case!
Someone should ask him what he plans on doing when China comes to collect on the massive debt his “need” is helping to fuel, or what he plans to do when his money becomes useless wrapping paper because of inflation.
Uhhh...No you didn't. Your employer(s) paid into it. Not 1 cent came out of your check.
If they can’t get or create a job in 26 weeks they better be standing in a Home Depot parking lot with a sign!
“I paid into the system for 25 years and now I need it,” he said. “People are being put through the emotional heartache and anxiety of not knowing if it’s going to keep coming. There are too many people who need it and are depending on it.”
Ummm, really? Where is that deduction listed at?
Just think of it as a gubermint pension.
This is one of the big differences now as opposed to previous smaller recessions. Many of the people on unemployment aren't abusing it, they are like this guy who truly need it until they get another job, and their just aren't many to go around now.
Around here we have people who their whole life count the weeks they are working until they hit the magic number and can go on "paid vacation" again. I doubt most people who jumped the number from 5% to 9.8% enjoy getting it, but they do feel they are entitled to something considering most of them have paid in to the system for their entire working life.
The one time I was out of work I hated taking the money, in fact I felt humiliated walking into the bank with that check and I drove to a different branch just so I didn't have to look the tellers I always dealt with in the eyes when I deposited them. I'm thinking most people feel the same way now, but there is just nothing they can do about it until things pick up.
How much you want to bet that at least half of those collecting are also working under the table
My heart goes out to those who are unemployed and cannot find a job. While there are those who simply don’t want to look for a job, most of them are motivated people who want to work but just can’t find anything.
If anyone is to blame for the huge number of people on unemployment right now, it is that anti-American son-of-a-b*tch Obama. Personally, I’m surprised we haven’t had mass demonstrations in front of the White House already.
At some point you have to start calling it welfare.
It’s Obama, but it’s also 95% of the House and Senate. And 4/9s of the Supreme court.
Yes.
That point is when the funds start coming from tax revenues instead of unemployment insurance funds.
As Gerald Celente says, when people lose everything and have nothing to lose, they lose it. An unemployed person who is collecting unemployment is being given enough to barely hold it together. If the benefits run out before they find work, they fall into the “nothing to lose” category. If millions of formerly gainfully employed people find themself in this situation it could become dangerous for our leaders (think “pitchforks and torches” only worse).
They will not let unemployment expire until only small numbers of people will be helped. They value their livelyhoods - and their lives - too much.
The interesting question is, what happens when the cost of continuing benefits is simply more tahn our culture can bear - and it could get to that point really soon.
“The report went on to say that people receiving unemployment benefits tend to plow the money right back into the economy, making them “both timely and cost-effective in spurring economic activity and employment.”
As rush limbaugh used to say, liberals like to give the poor just enough to keep them miserable.
Mostly a two year vacation for a lot of people. I know several who are milking the system for all it’s worth.
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