We all know not to expect much, or much of anything, from Congress these days. But watching the latest political gamesmanship over whether to extend long-term unemployment benefits for 2012 has somehow set the bar even lower. Don’t tell me this is proper political discourse, or just the normal horse-trading that occurs in Washington. It is unconscionable in December 2011 to not have a quick and clear extension of long-term benefits given the severe hardship millions of households are experiencing.
Of the 13.3 million Americans on the books as officially unemployed, 43 percent _ 5.7 million _ have been out of work for at least 27 weeks. The non-partisan Center on Budget and Policy Priorities says the previous high for the long-term unemployed over the last 60 years was 26 percent in 1983. Yet here we are at 43 percent and Congress is dickering over whether or not to extend the benefits.
And please don’t fall for any spin that the seemingly positive unemployment report for November mitigates the need to help the long-term unemployed.
Make no mistake, we are still in crisis mode. The unemployment rate didn’t drop from 9 percent to 8.6 percent because there were a ton of new jobs for the unemployed to step into. Much of the decline in the rate is attributed to the fact that more than 300,000 of the unemployed have stopped looking for work, so they no longer get counted in the math of the unemployment rate. We in fact added only 120,000 new jobs in November. At that pace it would take more than four years for private-sector employment to get back to where it was in late 2007. That’s not exactly a rosy picture.
Now of course, what will probably happen _ though with this Congress who knows _ is that sometime between now and Congress’ Christmas recess we will get word that the bickering has subsided enough and that long-term benefits will in fact be extended for 2012. But every day that we don’t yet have a deal is another day of congressional failure to serve its constituency. I am not talking solely about the 5.7 million. This speaks to what we as a nation stand for. I refuse to believe we are a country that wants to abandon our unemployed, or use them as political leverage. Yet here we are.
Concerned at the cost? Well, keep in mind that the non-partisan Congressional Budget Office has previously noted that extending unemployment benefits packs the most stimulative bang for the buck. Give someone with a job some money (through a tax break, say) and they might save it, or they might spend it. Give an unemployed person assistance and odds are very high that money quickly gets poured right back into the economy. That’s something that benefits all of us, at a time when the economy remains perilously fragile. And most important, it provides some relief for those who are struggling most.
• Orman is host of a personal finance show every Saturday on CNBC.
Comments (18)
Add commentHumane solutions
Some where the unemployment benefits must end. I can not imagine being down and out with no possible jobs available and having the unemployment end. It seems to me that there must be other humane solutions. Maybe this nation should never bail out another bank or foreign country ever again. What else could have been done with the trillions the Federal reserve gave to the banksters? One solution would be to offer temporary public service jobs to the long term unemployed. National parks, public facilities, roads, etc could all use some maintenance and cleaning. This would be a far better use of money than bailing out banks and fighting useless wars. Also if the politicians would impose tariffs on Chinese goods equal to what they charge us, maybe we would see some of the 5600 factories coming back to the USA and put a few million people to work. I dont pretend to know all the answers but I do know that solutions exist if common sense is applied.
Well, Pelosi did tell us that
Well, Pelosi did tell us that unemployment benefits stimulate the economy - remember for every dollar paid the economy reaps $1.61? According to her it's the fastest way to create jobs!
And food stamps are a great economic stimulus too, according to the left! For every dollar paid out, $1.79 magically appears.
Who believes this stuff? Keynesians, I guess.
Here's an idea - approve the Keystone pipeline and open up our energy reserves and create hundreds of thousands of jobs and then we won't need nanny government to feed and house us.
Government benefits are totally a political tool used by the Democrats to keep people dependent. They'll keep everyone just comfortable enough...and give them a cell phone and internet and you're guaranteed their vote. It's a win-win situation. Ick.
That's not the America I want for my kids.
Jeremiah Johnson not sure if
Jeremiah Johnson
not sure if you responded to my previous query if Jeremiah Johnson is your real name or the one from the movie?
@Calypso: hopefully you never
@Calypso: hopefully you never have kids.
@dingdong: agree. If we were to reinstitute the CCC or something similar, it would repair and improve our crumbling infrastructure, provide people with work and dignity, and preserve their skills so they don't look unattractive to potential employers.
@Calypso
With all you babbling about unemployment, please tell me why the Huffington Post say the CE f got anywhere from a 24 -54% salary increase this year? Something is wrong with this picture. The rid are getting richer, as the middle class is suffering under the stupidity of the Republicans to listen tom the people they represent
What is wrong is the way
What is wrong is the way Congress won't just vote on if they want or don't want something..... They are always trying to throw in something else they can slip in that they know the other side does not support , causing grid lock and posturing, case in point ..... the oil pipe line from Canada.... what does that have to do with the payroll tax reduction?
Skilled workers:
I never understood the lefts way when it came to common math. Anyway, I was reading an article where the author was explaining that America has plenty of jobs, but not enough skilled workers to fill them. I found this interesting. With that said I agree with Calypso, you want jobs now open up Keystone for one. It will provide all aspects of the job force. From the guy mining the ore for equipment/materials’ to the guy manning that shovel.
@Milspec.: you understand
@Milspec.: you understand that not all skills are equal, correct? Being skilled in carpentry does not qualify you for a skilled position in biology.
I'd like to see that article, though. It may well be there are "plenty of jobs" if you count entry-level positions at McDonald's and the like, but it's my understanding that the production capacity of the U.S. is sub-optimal due to decreased demand (as a result of the recession), which of course requires fewer workers. There just aren't enough jobs to go around, and if a job does open up in Philadelphia, it certainly doesn't help the unemployed guy in Los Angeles.
Skilled workers:
“Defying the high national unemployment rate, as many as 600,000 skilled manufacturing positions in the United States are unfilled due to the nagging shortage of qualified workers, a new survey concludes.”
This from Industry Week dated 11 October 2011. PP just search Lack of skilled workers and you will find all kinds of data.
“@Milspec.: you understand that not all skills are equal, correct? Being skilled in carpentry does not qualify you for a skilled position in biology.” I take that as an insult PP. Do you think you are the only qualified person in this area or others for that matter?
@Milspec.: umm, no, I mean
@Milspec.: umm, no, I mean that being a master carpenter does not qualify you to perform invertebrate zoology research. This should be obvious to anyone.
Anyways, what do you think a shortage of qualified workers is? It sure doesn't mean people are just too lazy to take jobs, it means there aren't enough people with a specific skill to take those jobs. 600,000 jobs is also not "plenty," given that there are some 13 million unemployed people in the U.S. right now.
paid in for years
Many of those currently unemployed paid into the system for years and years. They did not have a claim until now. Yet there is no consideration for how long you paid into the system. It all some magic number of months.
It would seem that there should be some consideration for the length of time yu pay into the system and the length of time you get paid by the system.
What a good idea, Jeremiah
What a good idea, Jeremiah Johnson. Then some people will just be SOL! What could go wrong?
Early retirement...
Creates more job openings. IRAs, CDs, why not IUAs (individual unemployment account)? Saving is always the best way if you can afford it. Wish I had every dollar I paid into Medicaid and UI.
Some folks are stuck
One problem is that the skilled jobs going begging for workers are in areas like North Dakota where, just like in the Alaska oil boom, there is no housing! There aren't even places for the carpetbaggers to park their motor homes!
The other problem is that jobs are located far from where the available workers are stuck because they are stuck with houses that are now worth far less than what they owe on their mortgage.
In some cases, folks have their life savings in their house, or they refinanced to pay for their kid's college (and kid now can't find a job) or medical expenses (the major reason for bankruptcies).
If those skilled jobs were where the skilled workers live, that would alleviate a small part of the unemployment problem, but having half a million jobs are available when there are 13 million out of work means that nationwide there are 26 applicants for every job available!
Of course one answer is to increase funding for public works such as road and bridge repairs, park maintenance, and school rehab. Unfortunately, the Repugnicans are determined to make the unemployed suffer, hoping that they will blame the President for their woes, instead of the party of no unemployment and more tax breaks for the rich. You'd think that after what happened last year, Lisa would want to help get folks back to work instead of letting those that knifed here in the back now stab her constituents!
If the rich were the "job creators" everyone would have jobs by now.
@skirkz: I wish I had every
@skirkz: I wish I had every penny I've paid into military spending. And everything else I've paid into.
Congratulations, your argument amounts to, "I'm greedy and wouldn't pay for things that play a vital role in our society if I didn't have to, to hell with the consequences."
What do you want to hear...
JJ? A guy works for 35 years with unemployment insurance premiums taken out of his paycheck every week. He finds himself out of work and files a UI claim. His weekly benefit amount is based on the amount he paid in over the last 18 months. So the first 33 1/2 years that he paid in doesn't count. He might end up with 4 to 6 months of benefit payments that don't come anywhere close to making his bills let alone his mortgage payments. 33 1/2 years of weekly deduction down the drain. You got his back? He's the one that paid into it. He should get another 11 YEARS of benefits by the afore mentioned formula. So here's the answer you're looking for: Pay one week of benefits for every three weeks worked. Pretty much how it works now, but, it's limited to a one and a half year base period.
PP toilet math
PP, 13,000,000 unemployed at an 8% unemployment rate means a workforce of 162,500,000 (and the rate is hovering between 9 and 8 on any given day). Given that, if the 600000 jobs Milspec talks about were filled -- meaning, if people would seek out skilled training (and education loans are available to almost anyone right now) -- it would drop our unemployment rate to 7.6%, and that's a pretty good change. But apparently it's more fun to be a cynic than a pragmatist.
Rainpedaler toilet reading comprehension
The original claim was that there are plenty of jobs to go around, implying the unemployed simply aren't interested in them, for whatever reason (verifiably false). 600,000 jobs, given the number of unemployed, is not "plenty."
Also, going in to debt while unemployed is not a responsible choice unless you're all but guaranteed a job. It's also very hard to GET loans when unemployed. Not to mention that you are not allowed to collect unemployment when in school, or that "skilled manufacturing jobs" typically involve skills you don't learn in college.
But feel free to completely misread this post like you did my other one.