6 Million to lose Unemployment benefits in 2012!

Discussion in 'Economics' started by S2007S, Oct 11, 2011.

  1. S2007S


    This is getting interesting, from what I have read millions are to lose unemployment benefits going into the end of 2011 and in January alone over 1.8 Million....6 Million + in 2012!

    The reason this is becoming an issue is because they have found out that for every dollar in unemployment a person receives $1.60+ goes back into the economy, some have said as much as $2.10 goes back into the economy so they think its like an investment in the unemployed.

    I bring this up is because in the next few months as millions and millions of people lose benefits this will be money not going into the economy....So I guess this is becoming more of an issue now as time runs out for those who are almost finished collecting benefits.

    Millions could lose unemployment benefits in 2012

    Tami Luhby, On Tuesday October 11, 2011, 6:12 am EDT

    Millions of unemployed Americans are waiting for Congress to do something other than trade barbs over their job creation plans.

    If lawmakers don't act soon, the jobless see their unemployment checks start to disappear come January.

    More than 6 million Americans are set to lose federal unemployment benefits in 2012, with 1.8 million running out in January alone, according to new figures from the National Employment Law Project.

    President Obama's $447 billion American Jobs Act would extend the deadline to file for federal unemployment benefits for another year. Though the Senate is expected to take up the controversial jobs bill on Tuesday, it's unlikely to get very far.

    While many Washington observers say the administration's jobs bill is dead in the water, it's possible the unemployment extension could be separated and sent through on its own, or as part of another bill before year's end. The extension is estimated to cost $44 billion, according to the Congressional Budget Office.

    Extending unemployment insurance is one of the few areas that has some bipartisan support. While some Republicans and conservative experts feel that jobless benefits dissuade people from taking new jobs, many lawmakers are hesitant to cut off the checks when unemployment remains at a stubbornly high 9.1%.

    From unemployment to startup

    Supporters, meanwhile, say unemployment benefits are an essential lifeline for the jobless, especially since work opportunities remain sparse. There were 3.6 million people collecting federal unemployment benefits as of mid-September, according to the Labor Department.

    "If you don't extend unemployment insurance, things will get worse and they'll get worse in a big way," said Judy Conti, NELP's federal advocacy coordinator.

    The average time that the unemployed have been without work hit a record 40.5 weeks in September. Also, some economists say unemployment benefits stimulate the economy since the jobless usually spend their checks right away.

    Still, getting another extension past lawmakers will take some political wrangling. Federal emergency benefits began in June 2008 and have been increased or extended eight times since then, including on four occasions last year. When Congress passed a 13-month extension last December, it was thought by some to be the last.

    Here's what's at stake: The jobless can collect up to 26 weeks of state benefits before shifting to the extended federal program. Federal benefits consist of up to 53 weeks of emergency compensation, which is divided into four tiers, and up to another 20 weeks of extended benefits. The maximum is 99 weeks.

    So those who reach the end of their state benefits after early January will not be able to apply for federal benefits unless the deadline to file is extended. Same goes for those now collecting federal benefits, who will not be able to advance to the next tier once they finish their current one.

    One potential area for compromise involves a larger overhaul of the unemployment insurance system. Republicans, particularly in the House, are interested in giving states more flexibility in their use of unemployment benefit funds and providing more job training opportunities.

    When he unveiled his jobs proposal last month, Obama called for "the most sweeping reforms to the unemployment insurance system in 40 years." The expanded goal: helping the jobless transition back to the workplace.

    Republicans could get on board with some of the initiatives, which include enhanced training, reemployment and startup opportunities.

    House Majority Leader Eric Cantor last month identified unemployment insurance reforms as an area of potential common agreement.

    "Unemployment benefits should not turn into a permanent solution," he said last month. "We should somehow connect the unemployed and unemployment benefits with work and job opportunity."
  3. It's all just rhetoric and PCJ until the government dramatically reforms to make jobs in America attractive to employers. (I doubt I'll live to see it.)

    :mad: :mad:
  4. its time for a WPA program.
  5. S2007S



    Let me know what you need a reference on and I will pull it up for you....

    Is it about how many are losing unemployment benefits or the amount of money thats put back into the economy for every dollar in unemployment benefits?
  6. jem


    that number about money put back into the economy... was once cited by pelosi... if I remember is was very misleading and questionably calculated.
  7. GordonTheGekko

    GordonTheGekko Guest

  8. Yeah, give the “Occupy Wall Street” crowd hard hats and shovels, along with lifetime welfare recipients. Come up with some public works projects, and then let the EEOC, OSHA, EPA, departments of Wildlife and Fisheries, etc. do everything they can to regulate it out of existence.

    The only beneficial thing that would come out of this would be a tragi-comedy reality show about the “workers” and how absolutely nothing was accomplished.
  9. poyayan


    Unemployment check as a mean to improve economy?

    1) How much of a % you think unemployed are driving the economy?

    2) Anyone can generate this so called $1.6 out of the economy for every $1. It is just spending? What is the long term value added to the economy? Nothing.

    You can argue unemployment check is there for humanitarian reason , or as its name "unemployment insurance", but not as "unemployment stimulus".
  10. Then Occupy Wall Street,OWS, will become Destroy Wall Street,DWS.

    I am telling you, the Mayans, they knew what they were talking about.
    #10     Oct 11, 2011