Unemployment Benefits Not Extended

Merry Christmas!

The US Congress, led by a pompous opposition, gifted to Americans some coal this holiday season. Indeed, it shall be a blue Christmas without their unemployment checks this year. Congress did not extend unemployment benefits through the midnight deadline of November 30. Republican voices argue that this is an unfunded program that is feeding into the budget deficit, which everyone concedes as fact. Even so, I expect this to be only a temporary delay, and the process might even help the economy a bit. If not, I'll see you at the welfare office this New Year's Eve...

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Unemployment Benefits Not Extended

The argument goes that the extension of unemployment benefits for another year will cost $60 billion that the government does not have. Meanwhile, the GOP would like tax breaks to be extended for the nation's highest earners, the cost of which is estimated upward of $700 billion. Those high-end tax breaks have been shown to have little impact on economic growth, while Goldman Sachs (NYSE: GS) estimates the failure to extend unemployment payments, money quickly spent when received, could cut 0.5% off GDP, which supports employment.

Legislation Delay a Positive, Cancellation a Negative

Sit down for a second and consider this unpopular idea, and please read the entire article. There is a possibility that this inaction could have some unintended benefit, as it may provide impetus to a fringe group of jobless people that will happily sit idle for as long as the money flows. Perhaps a fire is lit under some to be more aggressive and self-propelled. More small businesses might develop, and an increased number of people might take lower wages and more menial work then they would prefer. While I'm relatively certain this GOP block is a political ploy to gain the party some leverage on tax and other issues, if it does not last long, it might prove helpful. There is a small group of jobless that actually enjoy what most consider an incredibly anxious situation. It's a small group, but they are out there just the same.

I know as well as anyone that this does not describe the majority of the unemployed, who have spent lifetimes and significant funds to acquire a skill, expertise or education. Most Americans have ambition and a certain level of pride that keeps them pushing forward. Those folks see their economic situation clearly and understand the psychological impact of their unemployment as well. Let's not forget also that they have families to feed and established lifestyles burdening them.

I'm certainly not judging. I know you need your checks, because I had to live without them after my own unemployment income ran out and before this blog could pay my electric bill. I do not and did not ever qualify for unemployment extensions. There are many hardworking Americans out there who lost their job before the threshold date to qualify for extensions. Those folks are having just as hard a time to find work as you have been, though they have not been receiving checks. They have lost assets, and their families have fallen apart as a result. What you are tasting now is what they have been chewing on for a few years of serious hardship. So, I say to the government, remember those people as well! Their homes are in foreclosure; they are starving; and this bill does nothing to help them!

It's not the first time Republicans (I've converted to Independent) have picked the wrong battle to wage. You would have thought they might have learned, but the GOP again wages war on this same field of battle. You will recall when Kentucky Senator Jim Bunning obstructed extension legislation earlier this year. It was insulting then, and it is insulting now! Besides the obvious reasons to continue paying, it is just the completely wrong time to stop, unless you want to see an increase in holiday suicides this year. And the fact remains that there are about 2 to 3 million jobs available on the market for a pool of job seekers that includes 15 million unemployed.

If this continues for more than a few days, Congress can expect a good portion of the 2 million folks they are cutting off to come knocking on their doors; and they won't be there to sing Christmas carols. They'll be there to collect their own money, paid in taxes over the course of years. Whatever the case, I'll see you at the food bank and welfare office this New Year's Eve if this bill is not passed soon…



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