Politico: Jobless benefits help economy
Thursday, my subcommittee plans to hold a hearing about the parts ofPresident Barack Obama's jobs bill related to unemployment. This includes anextension of federal unemployment insurance, as well as new initiatives designedto help the jobless return to work.
If Congress fails to act by Dec. 31, more than 2 million Americans lose theirunemployment benefits by mid-February, and a total of more than 6 million willlikely lose benefits during 2012.
Terminating unemployment assistance also hurts our economy by suppressingconsumer demand and confidence. Allowing this federal unemployment program toexpire would cost our nation more than 500,000 jobs, according to the EconomicPolicy Institute. The means a double-whammy for the unemployed — they lose theirbenefits and jobs also become even more difficult to find.
There is near unanimity among economists that few government expenditureshave a more positive, stimulative effect than insurance payments to theunemployed — who spend those dollars quickly to pay for life's necessities.
My hope is that Thursday's crucial hearing can provide a glimmer of hope thatRepublicans are finally prepared to move in a different direction. My Republicancolleagues must stop their "blame the victim" approach, as I have repeatedlyurged them. They must refrain from blaming unemployment on the unemployed.
One Republican congressman this year even went so far as to compare theunemployed to drug addicts. "We've got a system," he said, "where you can stayon unemployment for an awfully long time. … Anybody who's had an alcoholic intheir life or somebody with a drug problem, realizes that until things get badenough, there's no incentive to change. We're so generous … that people areunwilling to get a job outside in the heat."
This is gravely insulting tothe millions of Americans who have lost their jobs through no fault of theirown, because our nation has shed 9 million jobs. It is also plainwrong.
Unemployment benefits are a lifeline — but they are not generous.The average benefit of $300 a week reaches only about 70 percent of the povertyline for a family of four. Most unemployed want very much to work. But there aresimply not enough jobs to go around.
Even with the 2 million jobs createdduring the past year and a half, there remain roughly 7 million fewer jobs inthe economy today than when the Great Recession started in December 2007, duringthe Bush-Cheney administration.
This jobs deficit means that today inAmerica there are more than 4.3 unemployed workers for every available job.That's why, when new jobs are announced, the line of job seekers often stretchesaround the block.
Let's hope that this hearing is just the first step inforging a clear consensus that we must not abandon the millions of Americans whonow depend on unemployment insurance to make ends meet — even as they activelyseek a new job.
With that as a starting point, I am hopeful we can makereal progress on moving our economy forward — and increasing the opportunity sothat folks looking for work can find it.
Rep. Lloyd Doggett (D-Texas)is the ranking member of the House Human Resources Subcommittee.