Sunday, February 9, 2014
Dear Congress: Help the Long Term Jobless
Senate Republicans almost blocked the three month renewal of unemployment benefits for those who are long term unemployed. This program provides 47 weeks of benefits after state-paid benefits ran out. If this legislation did not pass more than 1.7 million Americans would have lost these benefits. Economist stress the importance the extension of these benefits have on the economy. Even though the unemployment rate has fallen to 6.6% (the lowest in 5 years) this number is still really high and should not be seen as this great accomplishment. Also there is the concern that the number of jobs added to the market are lower than what were to be expected. Only 113,000 instead of the expected 189,000. People who are long term unemployed make up 35.8% of all people unemployed. The concern is whether or not these individuals will be able to work again. Without the extension of these benefits the probability of them finding work would deplete immensely.
http://finance.yahoo.com/blogs/daily-ticker/plight-of-the-long-term-unemployed-160841066.html
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I think that the unemployment rate falling to 6.6% (the lowest in 5 years) should be seen as an accomplishment. There will always be some unemployment, and having our lowest in 5 years should certainly be seen as positive.
ReplyDeleteI also am hesitant to say weather or not I believe a lack of extension of unemployment benefits will deplete the probability of the unemployed finding work. I believe the extension of these benefits would reduce the incentive of the unemployed to find work, as they would be able to continue to rely on the government to pay their bills.
If the renewal of unemployment benefits was blocked all of these citizens would be living in extreme poverty. Although blocking the benefits would seem like an incentive for unemployed citizens to find work, it is not that simple. Taking away benefits would also cause the gap between the wealthy and poor to grow even more.
ReplyDeleteI also think that the unemployment rate falling to the lowest in in 5 years at 6.6% is an accomplishment, however a 6.6% unemployment rate is still very high. It will take years for the US to completely recover from the financial crisis of ’08. I see this 6.6% unemployment rate of a good sign in that direction, if the economy continues to aid this issue.
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