The U.S. Commerce Department reports today that corporate profits are at a record high, at a time when corporations are sitting on $1.8 trillion in cash reserves. At the same time, 15 million Americans are still looking for work.
Two years after the financial collapse caused by right-wing deregulation and corporate greed, Wall Street is handing out its biggest bonuses in history -- more than $144 billion. At the same time, millions of working Americans are struggling to feed their families, pay their bills and keep a roof over their heads.
And the situation is set to get even more painful in the months ahead. Millions of Americans -- 2 million in December alone -- will be cut off from unemployment insurance. Republicans in Congress blocked an extension of this emergency lifeline just before leaving Washington, DC, for their Thanksgiving recess.
Most laid-off workers desperately want to get back to work. But the jobs are just not there. Yet, while families are struggling, the U.S. House failed to pass a much-needed extension in unemployment benefits. The members who voted to make life more difficult for the unemployed should hang their heads in shame. Their vote, one week before Thanksgiving, was disgusting.
Unemployment insurance gives a powerful boost to the economy. It creates jobs. Families that receive unemployment insurance put that money straight back into the economy. They spend the money on essentials -- like food for dinner, winter clothes for their kids and heat for their homes. Every dollar spent on unemployment insurance creates two dollars of economic activity, supporting local businesses, helping create jobs, and costing taxpayers less in the long run. Given how slow and fragile the economic recovery is right now, we need to put money back into the economy.
Americans strongly support extending unemployment insurance while so many remain out of work. A new poll by Hart Research Associates indicates that nearly three in four Americans say it is too early to cut jobless benefits. Republicans in Congress, however, seem uninterested in getting the economy moving and helping Americans through this crisis. They're more focused on tax cuts for millionaires.
Earlier this year Republican Sen. Jim Bunning of Kentucky single-handedly held up unemployment insurance payments to families struggling to get by. When a colleague tried to get him to stop his games, Republican Bunning replied: "Tough shit."
Unfortunately for millions of families this holiday season, more than a handful of Republicans in the U.S. House of Representatives agree with Bunning. Incoming House Budget Committee Chair Paul Ryan (R-WI) says that the middle class should get assistance only when the rich get a tax cut. Tea Party leader Rep. Michele Bachmann (R-MN) says she is only willing to compromise on taxes if unemployment insurance isn't part of the deal.
Wealthy Americans shouldn't be given tax breaks while millions of their fellow Americans lose their unemployment insurance. Working families -- who have been struggling to do more with less and less -- need a break, not the CEOs and the corporate conservatives. Congress must extend unemployment benefits for Americans struggling to find a job and keep the tax cuts for middle-class families. It's time to do what's right for Americans who've lost their jobs and for everyone who is struggling to survive the economic disaster created by Wall Street and their Republican allies.
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Jeff Schweitzer: A Falsehood Wrapped in an Enigma Stuffed Into a Burrito
Anyway, thanks for playing "Are You Smarter Than A Key Economist"
Yes, SOME economists believe that government stimulus dollars create more economic benefit than they cost. SOME do not. In Germany, the top economists argue that government stimulus has a negative effect; they believe every $1 spent causes a $.60 return, and thus $.40 is lost. That's why they are taking substantial austerity measures. Who's right? Our grandchildren will get to debate that, long after the economists are dead.
Anyway, please learn the difference between theory and proven fact, and then come back and argue intelligently.
Actually the democratic congress since 2006 wrote the regulations and policies that are responsible for the problems.
The author complains about the money the corporations are sitting on and not hiring.
The corporate tax rate is the second highest in the world. Why would they bring the money to invest here? With the possibility that the tax rates will go up in January why would any business hire?
Barney and Freddie and Fannie and Dodd and Country and Al Gore and the Dems who took charge brought unemployment to over 10%
And we don't get a dang thing for that money while unemployment benefits create jobs and stabalize the economy.
I was laid off in April 2009. I do not qualify for the extended tiers because my state is under the unemployment thresh hold.
No one has ever explained how some one unemployed in a state with 8% unemployment does not need UI benefits but an unemployed in a state with 9% unemployment does need benefits.
No one has ever explained the Democrats opposition to using stimulus dollars to pay for UI benefits... since The money spent is claimed to be the most effective in helping the economy.
Dens are in favor of extending the benefits, overwhelmingly. Republicans overwhelmingly are opposed. The republicans blather on about the deficit, but refuse to make corporations pay their fair share of the taxes and want to lower taxes for the wealthy. Even REPUBLICAN economists say that this will increase the deficit astronomically.
The fact is, republicans don't care about middle America and America just voted them into power.
I was not aware that the democrats inserted wording to prevent the stimulus money from being used in the most economically stimulating manner; i.e. UI benefits.
Are you sure about that?? Do you have any conception of why they would deny the most useful spending of the stimulus dollars?
I am not saying that you are wrong...I am asking what possible motive and reasoning could have led the Dems to do such a thing? .
As it turns out, the rich can take care of themselves, and when the government tries to look after them, they take all our money, stop paying taxes, and give what would be our paychecks to themselves as bonuses.
so your saying 8 year of bush cheney mis management, should magically be fixed in 18 months.....it wont even be two years until jan 2011
but there go you and those faux facts again..
Or it is like voting pro-life, while getting an abortion.
The hypocrisy of this... is beyond comprehension.
ANd Americans cannot stop our government from destroying our country, because we can only vote for two incompotent parties.