Labor Update: Unemployment Insurance Helps Economy
Failing to pass a UI extension, however, won’t only be unjustly cruel and economically devastating to the U.S. economy, it will also be record-setting. According to the National Employment Law Project, “Congress has never cut federally-funded jobless benefits when unemployment was this high for this long (at over nine percent for 17 consecutive months).”
Come December 30th, this group of income refugees, along with their families, will be joined by two million more people whose unemployment benefits will be cut.
The four people who won’t get the one job available for every five applicants will be screwed. However, as Pat Buchanan pointed out last week on Morning Joe, it’s no big deal 'cause these people can then be eligible for things like food stamps and Medicaid. No worries.
The actual number of people who will be affected, though, is much greater. States and cities will lose revenue, too, since unemployment insurance benefits are taxed. Local economies from which these people buy things like haircuts, lunch and socks will also suffer.
Extending the benefits would have cost us $12.5 billion. – This is too much for deficit hawks who, nevertheless, see no threat from continuing our cost to fund war – $1.1 trillion since 2001.
Another way of looking at the mad prioirities of the deficit hawks is this: The annual cost of maintaining one soldier in Iraq is $390,000. Iowa just sent a few thousand of these soldiers out to risk their lives for cheap oil. Imagine if instead, that money was used to subsidize that young soldier or older national guardsman to be trained to manufacture wind technology. It's not an overnight process, but neither have the wars in the Middle East proven to be. Investing in renewable energy for access to cheap fuel pays off infinitely over time and nobody has to kill or be killed in the process. I don’t know about you, but I prefer that idea.
If you haven’t already, contact your legislator, sign this petition, write a letter to the editor, and call in to a radio talk show and reclaim the narrative from the hypocrites in charge.
~Tracy Kurowski has been active inthe labor movement for ten years, first as a member of AFSCME 3506, when
she taught adult education classes at the City Colleges of Chicago. She
moved to the Quad Cities in 2007 where she worked as political
coordinator with the Quad City Federation of Labor, and as a caseworker
for Congressman Bruce Braley from 2007 – 2009.