Yesterday, congress
approved a six month extension of emergency unemployment benefits for the
long-term unemployed. But it wasn’t
easy.
Why was there so much debate over the extension?
This extension will reinstate aid to nearly 3 million people that lost their benefits
on June 2 and it couldn’t have come at a better time. Two weeks ago unemployment claims were at the
lowest point since August 2008, but just last week, unemployment claims
increased by 37,000.
The extension wasn’t approved sooner because there were concerns regarding the
national debt. Those representatives who
opposed the extension wanted the unemployment benefits paid for upfront with
the stimulus package and not have anyone pay for it later.
Back in the
day, extending unemployment benefits was a no brainer, but now, there is much
apprehension including the thought that collecting unemployment is an
attractive alternative to working (while
historical research supports this view, we have to take into account that today’s
economic climate is VERY different from that of the past).
With five
unemployed workers for every job opening, it’s not as though those who are unemployed
are not searching for work. It’s just
that corporations are hesitant to hire, despite four straight quarters of
economic growth.
So
is the real issue here the fact that companies aren’t hiring at an accelerated
rate? And will the extension of unemployment benefits slow them down even more? To be honest, we don’t know—“Results may vary.” Regardless, 3 million unemployed people are
happy today. Some say they’ll use the money to pay bills while others say that
the extended benefits have simply restored hope.
