UncategorizedUS & World

US Senate Extends Unemployment Benefits

The U.S. Senate approved a three month extension of expired “extended” unemployment benefits – a move which will cost taxpayers $6.4 billion in the event the “Republican”-controlled U.S. House goes along with this scam. By a vote of 60-37, the Senate voted to move the measure forward – with six…

The U.S. Senate approved a three month extension of expired “extended” unemployment benefits – a move which will cost taxpayers $6.4 billion in the event the “Republican”-controlled U.S. House goes along with this scam.

By a vote of 60-37, the Senate voted to move the measure forward – with six “Republicans” (Kelly Ayotte of New Hampshire, Susan Collins of Maine, Dan Coats of Indiana, Dean Heller of Nevada, Lisa Murkowski of Alaska and Rob Portman of Ohio) voting in favor of the extension, which U.S. President Barack Obama says he is eager to sign.

Weak …

House Republicans have said they will approve the extension if Democrats find an offsetting spending cut – which obviously isn’t going to happen.  So the GOP will do what it always does when faced with such a dilemma – divide and surrender.

Pre-recession, the typical duration of unemployment benefits was six months – but the “emergency” extension approved in 2008 nearly quadrupled this time period to 99 weeks (although it was recently scaled back to 73 weeks).

This website opposes the extension of these extra unemployment benefits – even if spending cuts are found elsewhere in the federal budget.

Why? Because perpetually handing out these benefits incentivizes joblessness – keeping people on the government dole far longer than necessary. To wit …

(G)overnment assistance programs contribute to long-term unemployment in two ways. First, government assistance increases the measure of unemployment by prompting people who are not working to claim that they are looking for work even when they are not. … The second way government assistance programs contribute to long-term unemployment is by providing an incentive, and the means, not to work. Each unemployed person has a “reservation wage”—the minimum wage he or she insists on getting before accepting a job. Unemployment insurance and other social assistance programs increase that reservation wage, causing an unemployed person to remain unemployed.

Who said that?  Former Clinton Treasury Secretary and Obama economic advisor Larry Summers … which makes it even more ironic that this program was initiated under “Republican” George W. Bush.

Aside from the demonstrated inefficacy of perpetual dependency, GOP House members would be wise to consider the politics of prolonging this handout.

“From a political perspective, it would be a big mistake for Republican leaders to go along with the push to spend more on (unemployment insurance),” writes Chris Edwards of The Cato Institute. “GOP leaders already caved in with more spending on the recent Ryan-Murray budget deal. If they cave in on UI, cave in on the costly farm bill, and cave in on upcoming debt-limit legislation, there would be no reason for fiscal conservatives to show up and vote Republican in November.”

Wait … there’s a reason for fiscal conservatives to vote “Republican?” 

That’s funny …

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9 comments

ThreePalms January 7, 2014 at 4:26 pm

House Republicans. So much more dogmatic than pragmatic. Let’s all watch as they show us how to win national elections.

I’m sure we can expect our Republican reps from SC to vote against this idea. Just like they voted for defaulting on the debt and shutting down the government. Why are Republicans so bad at economics?

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Frank Pytel January 7, 2014 at 4:43 pm

Actually, they’re spot on. Shut down government = they can’t make new laws spending more money my great grands don’t have. Basic math.

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Deo Vindice SC January 7, 2014 at 5:18 pm

Agreed, who cares about vets or our military, unless we need them. Basic Republican economics.

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Frank Pytel January 8, 2014 at 5:48 am

BS. I clearly said “new” laws. Try again libtard.

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anon. January 7, 2014 at 4:39 pm

Because perpetually handing out these benefits incentivizes joblessness – keeping people on the government dole far longer than necessary…at $326 max a week? Hardly.

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Ghetto Fabulous January 8, 2014 at 8:55 am

I guess you don’t see all the trashy families that live 8 to a house with half of them getting benefits so they can sport the newest version of Nike’s and rent the coolest 20″ rims for their SUV.

You must live in wonder bread landia.

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I'm an economic idiot January 7, 2014 at 9:45 pm

Because unemployment benefits are good for the economy!!!

Hahahahahah!

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idcydm January 8, 2014 at 8:31 am

The President said the economy is improving then said we have an emergency and need to extend unemployment benefits? You can’t have it both ways Mr. President.

I guess if you believed you can keep your plan if you like your plan you will believe anything this President will say.

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Thomas January 8, 2014 at 3:12 pm

This vote in the Democrat controlled US Senate highlights the failure of Democrats to create jobs holding once all three branches, two of three branches since 2010. It is time to vote out the Democrats in the US House and Senate. If the SMALL BUSINESS JOBS ACT OF 2010, BUDGET CONTROL ACT OF 2011, TEMPORARY PAYROLL TAX CUT CONTINUATION ACT OF 2011, American Recovery and Reinvestment Act of 2009, Fraud Enforcement and Recovery Act of 2009, Helping Families Save Their Homes Act of 2009, HOMEBUYER ASSISTANCE AND IMPROVEMENT ACT OF 2010, United States Manufacturing Enhancement Act of 2010, Worker, Homeownership, and Business Assistance Act of 2009, Hiring Incentives to Restore Employment Act, and Cash for Clunkers did not work, it is time to vote the Democrats out. They have had 5 years to implement these laws, untold hundreds of billions of dollars to spend, yet have failed miserably in getting these people off of extended unemployment benefits. They crawl to the American people with a crocodile tear in their eye that people are out of work. Time to put Democrats out of work in the 2014 mid term election this November.

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