Main Street

Still No Jobless Benefits Extension (Yet)

With time rapidly running out for millions of jobless Americans facing the end of critical benefits programs February 28, the Senate today continued its piecemeal approach to the massive unemployment crisis by passing a rather small tax-break for hiring plan.

Urgently needed extensions of the expanded unemployment insurance and COBRA health subsidies beyond the end of February were not included. But it appears that another piecemeal approach to those benefit extensions may be in the works.

The jobs bill did not include an extension of expiring unemployment insurance and COBRA health insurance subsidies. A Democratic aide said that leaders plan to pass a short-term extension of unemployment insurance and COBRA but Reid said Wednesday his plan is to eventually pass a year-long extension.

What are they talking about? Most likely a one-month emergency jobless benefits extension, during which they’ll negotiate the provisions of the year-long extension. That just might give opponents the time to pressure for reduced benefits and more corporate tax breaks.

We need to keep the heat on the Senate. Call your Senators and tell them to extend the jobless benefit programs through 2010 immediately and provide needed fiscal relief to state and local governments.

If you don’t think there are some powerful, big money interests who’d like nothing better than to cut off benefits to the 11 million Americans now receiving jobless aid, check out this segment from Monday’s CNBC ‘Street Signs’ hosted by Erin Burnett. It features unemployment benefits advocate Judy Conti of the National Employment Law Project (NELP), one of our key allies, and hedge fund economist John Makin of the conservative American Enterprise Institute. I’ve extracted a few quotes below. The segment is called Funding the Jobless:

It’s darn clear that the ‘Street’ they’re talking about in the show’s title ‘Street Signs’ isn’t ‘Main Street’.

In her lead-in Ms Burnett asks Mr. Makin if it’s time to stop supporting unemployment insurance payments:

“Why may it be time to reconsider?”

Makin replies:

“Well, the cost is one good reason”

and proceeds to present the issue as a choice between funding jobless benefits or tax breaks for businesses to hire.

NELP’s Judy Conti responds:

“These benefits, first and foremost are job creation. Extending unemployment benefits through the end of this year will create 800,000 jobs.”

“For every dollar that is spent on unemployment benefits the Congressional Budget Office tells us that that dollar creates one dollar and ninety cents in economic stimulus for local communities.
If we were to let that money lapse, we would be abandoning the families that are supporting themselves on these benefits, but we’d abandon the communities as well.”

She’s right on all counts. Her opponent in this segment, John Makin, it should be noted, is on the payroll at Caxton Associates, one of the world’s largest private hedge funds, headed by conservative-supporting billionaire Bruce Kovner, ranked among the richest people in the country.

A stark contrast between the advocates for ‘Main Street’ and the super-rich on Wall Street.

Tags: jobless benefits extension, unemployment