More Than a Million May Lose Jobless Aid Due to Deficit Concern

Discussion in 'Economics' started by ASusilovic, Apr 29, 2010.

  1. April 29 (Bloomberg) -- Since the U.S. recession began in December 2007, Congress has extended the duration of weekly unemployment benefits for the jobless three times. Now, the lawmakers may have reached their limit.

    They are quietly drawing the line at 99 weeks of aid, a mark that hundreds of thousands of Americans have already reached. In coming months, the number of those who will receive their final government check is projected to top 1 million.

    It’s a deadline that has rarely been mentioned in recent debates over jobless benefits, in which Republicans have delayed aid because of cost concerns. The deadline hasn’t been lost on Teauna Stephney, a 39-year-old single mother from Bothell, Washington, who said she could become homeless once her $407 weekly checks stop in June.

    “What are people like me supposed to do?” said Stephney, who said almost two years of benefits haven’t proved long enough for her to find work after she lost her last job in August 2008. Referring to lawmakers, she said, “I would like them to come and talk to me and spend a day in my shoes.”

    Democrats who have pushed through the past extensions agree there’s insufficient backing to go beyond 99 weeks, largely because of mounting concern over the federal deficit, projected to reach $1.5 trillion this year.

    “You can’t go on forever,” said Senate Finance Committee Chairman Max Baucus, of Montana, whose panel oversees the benefits program. “I think 99 weeks is sufficient,” he said.

    “There’s just been no discussion to go beyond that,” said Senator Byron Dorgan, a North Dakota Democrat.

    ‘Damned If They Do’

    Allowing the ranks of those who lose their aid to swell carries risks for Democrats in November’s elections.

    “They’re damned if they do and damned if they don’t,” said Stuart Rothenberg, publisher of the Rothenberg Political Report. Voters are “sensitive these days to spending and deficit issues and yet there are going to be people who need help, and if the administration ignores them, they’ll look rather callous.”

    Lost your job ? Call uncle Ben at the Federal Reserve. He has the magic printing machine...
  2. empee


    apparently only if your a bank.
  3. pspr


    Bout time those slackers start seriously looking for a job. Studies show the longer one is on the dole the longer one waits to find work.

    I remember once when I was young and unemployed for a long period I got to the point where I didn't see how there was enough time in the day to go to a job. My days were full already. It was hard to get out of that mindset and get back to work.
  4. BSAM


    Hear hear.
  5. OMG. So now these poor victims have to find work after ONLY 99 weeks of unemployment benefits?? :eek:
  6. bevo96


    If we stop giving them money, who is going to drive retail sales and new all time highs for retailers?
  7. TGregg


    The democrats aren't about to let a ton of people drop off government handouts right before the midterm elections. Maybe right after, but not right before. Perhaps they can skate by with a 13 week extension for a grand total of 112 weeks.

    Didn't unemployment used to be just 13 weeks? Then they upped it to 26, right?
  8. People will just go on welfare, food stamps, and medicaid once unemployment runs out.
  9. S2007S


    No need to worry, they will come up with a better plan to help the millions of those on unemployment, why stop the free money now, many people are enjoying their 99 weeks of unemployment. This is helping prop up retail sales and gdp growth, the more unemployment people collect the more goes into the economy, they know they can keep rates at 0% and keep the printing press running to keep the economy going because that's the only way to fucking fix this crisis, there is no way to grow the economy anymore without the help of stimulus and bubbles thanks to bubble ben bernake.
  10. S2007S


    I think after this last recession they might actually up that average to a cool 52 weeks!!!!!!!!
    #10     Apr 29, 2010