In December around 1.3 million were no longer eligible for
unemployment insurance, and every week about 70,000 more people get added on to
this number.
Around 2 million people this week were no longer able to get
unemployment insurance. Recently Obama has attempted to reinstate these
benefits, which would cost approximately $15 billion. Democrats and Republicans
have been arguing over this topic for a while now. In the past the senate has
voted on this topic before and was not able to pass it, it just needed one more
vote to pass. Harry Reid the senate majority leader says that there will in the
near future be a vote on this topic, however; even if the senate is able to
pass this bill there might come some trouble getting it through the House of
Representatives, because it is controlled by the Republican Party.
http://www.huffingtonpost.com/2014/03/04/unemployment-benefits_n_4895717.html?utm_hp_ref=business&ir=Business
Instead of delaying the decision on such an important issue, it is best to deal with it now and get a long term solution.
ReplyDeleteI know it is easy to say and very difficult to implement but they should make a decision NOW as this is a very important issue that is not just affecting these 2 million people but their families too! And the economy in many other ways.
On a side note: it will definitely affect the voter turnout too for the coming elections.
It will be interesting to see how this affects the unemployment rate and labor force participation rate. If the unemployment rate lowers and the labor force participation rate stays the same this would be a great thing for the economy, cutting the deficit and unemployment. If the unemployed that lose their benefits simply drop out of the labor force obviously it would not be a good thing.
ReplyDeleteI agree this would be easier if the decision was made now, because if they wait to long to make a decision the cost of actually reinstating the benefits will be even higher then it is now, and it will just keep effecting more and more people.
ReplyDeleteI don't agree that the decision should be made right away. It might be better to see if it is necessary first. The economy has been recovering from the recession, and predictions estimate that the U.S. economy will continue this growth with little interference. While some unemployment benefits are obviously necessary, it is better to analyze the situation to see if the benefits of extending unemployment benefits outweigh the negatives. As of now, it is unlikely that these benefits will be extended without this debate. If Congress voted on this legislation to extend unemployment benefits tonight, it would likely fail as the House of Representatives is controlled by the Republican Party. In that sense, it does not make any sense to vote on the issue now when a better discussion of it might lead to implementing this legislation later. If these unemployment benefits are needed for the economy, it would send a bad signal to the economy if Congress voted on it now and did not pass it. That is one main reason for why it is better to discuss this issue before voting on it.
ReplyDeleteAs we already talked in class, some unemployment benefits are necessary and good for social stability of country. However, the lost of unemployment insurance will stimulate a lot of discouraged workers to look for a job, which is good for developing economy.
ReplyDelete