While Congress Debates Tax Cuts for Millionaires Emergency Unemployment Benefits Could Expire for Millions of Jobless Workers
Posted November 16th, 2010 by Thao Nguyenby Jasmine Tucker
The unemployment situation is dire, especially among those who have been jobless for an extended period of time. Unfortunately, the situation is not likely to get better any time soon—national unemployment in October was above nine percent for the 18th consecutive month and is projected to remain above nine percent throughout 2011. Despite these historically high rates, some members of Congress are considering allowing federal unemployment benefits to expire on November 30th—a decision that would leave more thantwo million jobless workers at risk of benefit cutoffs in December.
Unemployment benefits provided critical support for women and their families in 2009, lifting 3.3 million people, including nearly one million children, out of poverty. The need for this vital support is hardly diminishing. The ranks of the long-term unemployed have swelled to record high levels, as close to 42 percent of the nearly 15 million jobless workers have been unemployed for six months or longer. As of last month, more than 2.4 million unemployed women had been searching for a job for six months or more, representing nearly half of all women who are unemployed (44 percent).
The cost of extending federal benefits for the long-term unemployed through 2011 is $65 billion—compared to the $40 billion cost of extending tax cuts for the wealthiest two percent of Americans for 2011—but the return to the economy will be much greater. Extending unemployment benefits for 2011 will grow the GDP by more than $104 billion, while extending the Bush tax cuts for the top two percent would result in less than tenth of that amount ($10 billion) added to the GDP. Choosing not to extend the program while unemployment is high would be a serious setback for our economic recovery.
Over the past 40 years, Congress has never allowed emergency unemployment benefits to expire when the unemployment rate was above 7.2 percent—2.4 percentage points lower than the current rate. Unemployment benefits are an essential lifeline for jobless workers and their families; Congress must make extending emergency unemployment benefits to support women and their families a top priority.
Cross posted from National Women’s Law Center
3 Comments
November 25, 2010 at 6:53 am by Bush tax cut debate2011 will be another recession year. Might even be worse than previous years. It is really scary to have representatives in the USA making stupid decisions for the unemployed people of the USA.
The Republicans only take care of the rich people!
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November 25, 2010 at 6:51 am by Bush tax cut debatewhy not make unemployment a program just as social security and raise taxes to fund the program through unemployment insurance add on’s just as a social security medicare tax is paid. social security has made a profit of 2 trillion on 11.8 trillion paid out since inception; it appears to be a viable solution to the lack of job creation.
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November 17, 2010 at 5:21 am by sandraamen>>>><<<< let"s hold hands and prey that they do the same then,in heavanly name amen.
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