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Rep. Carolyn Maloney

Rep. Carolyn Maloney

Posted: November 23, 2010 12:45 PM

As we head into Thanksgiving and the start of the holiday shopping season, nearly 2 million unemployed Americans have to worry that their unemployment benefits will stop at the end of the month, with the federal unemployment insurance program set to expire on November 30.

It's not just the 2 million jobless Americans that will lose their unemployment benefits in December who will suffer if those benefits are cut off.

The grocery stores, retailers and small businesses where the benefits get spent will also take a hit, at a time when many of these stores are still struggling to recover from the Great Recession. The timing couldn't be worse. There just aren't enough jobs right now. In fact, there are five unemployed Americans for every job opening in the country.

In every major recession since the 1950's, Congress has enacted a temporary program providing additional weeks of federally-funded unemployment insurance benefits after state-provided unemployment insurance is exhausted. In the past, Congress has always continued providing those federal unemployment benefits until the economy was strong enough to drive down the unemployment rate.

The unemployment rate now stands at 9.6 percent. The Center on Budget and Policy Priorities estimated that failing to maintain benefits would result in more than one million additional jobs lost over the next year. With 14.8 million Americans unemployed, we simply cannot afford that.

What's more, Congress has never ended federal unemployment benefits with the unemployment rate above 7.4 percent.

Congress's efforts this fall to pass legislation to maintain unemployment benefits are not encouraging. While Senators Casey and Reed are pushing for a one-year renewal of benefits -- recognizing that it will take time for the economy to pick up -- the prospects for preserving those benefits for even three months dimmed last week when, due to a lack of Republican support, the House failed to pass a bill that would have continued the program though February.

Time and time again, the overwhelming majority of Republicans have voted against providing unemployment benefits to workers who need support as they try to find their next job. The election didn't seem to change anything on that front, with only 21 of 179 House Republicans voting last week to continue unemployment benefits.

Republicans often cite the deficit as the reason to end the unemployment benefits program. But the president of the Concord Coalition, an organization whose very mission is to eliminate the deficit, says, "As a deficit hawk, I wouldn't worry about extending unemployment benefits."

And most economists, including former Federal Reserve Chairman Alan Greenspan, have said that cutting a short-term program that helps to strengthen a sluggish economy isn't the right place to look for budget savings.

As we gather for Thanksgiving, we can be thankful that our economy is doing better than it was a year ago. However, for far too many American families, jobs are still hard to come by.

The truth is that we can support both the families and businesses that depend on their purchasing power by maintaining unemployment benefits for those Americans still reeling from the Great Recession. When Congress returns after Thanksgiving, this must be a priority.


Congresswoman Carolyn Maloney is the chair of the U.S. Congress Joint Economic Committee, which just released a report on the impact of unemployment benefits on the economy.

 
 
 
 
 
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
My micro-bio is no longer empty
10:13 PM on 11/23/2010
Give up all that you thought you knew about America. No more delusions or fairytales about it being a country of "compassion" or "justice". No more lies.

What you now hear from the GOP and the bagger posters here is the "NEW" America. This is the ultimate and the only possible evolution of a country that is willing to be defined by an economic system. This is what capitalism looks like when it takes over a country and a people, throwing off all "values" as extraneous weight. They say that everything has a purpose, even if it's only to serve as a warning to others. Our present condition, and surely what is yet to come for our fellow citizens who have done nothing wrong, is that warning.

Those who are actually responsible for this unenviable position for so many of our citizens are looking over their handiwork from their penthouses, or escaping the vision on their yachts, but none are suffering any of the consequences of their actions as the holidays approach. They are above such menial reproach. Welcome to New America.
HUFFPOST SUPER USER
HopeR
02:53 AM on 11/24/2010
Thank you for giving those of us who are long term unemployed a voice! And what you say is quite true.
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Alwayspissedoffatsomeone
Fighting for Common Sense
06:46 PM on 11/23/2010
One problem with this ideology.....someone has to pay for it. Same old rants about this issue. Of course free money will help, but who's paying for it? Enough already........
07:50 PM on 11/23/2010
So did you just skip the paragraph that read:

In every major recession since the 1950's, Congress has enacted a temporary program providing additional weeks of federally-funded unemployment insurance benefits after state-provided unemployment insurance is exhausted.
That would include your favorite Prez - Reagan- during his big long deep recession - where they had the great advantage of being able to help stimulate growth by bringing the sky high interest rates down.

And maybe you skipped the part about how killing the UEI program now would kill maybe a million other jobs. Maloney is right on the facts and right on the policy. The gal's got grit. I like her.
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Alwayspissedoffatsomeone
Fighting for Common Sense
09:26 PM on 11/23/2010
No one is saying "kill the program". I'm saying that at some point enough is enough. It's not up to the Government to pay your bills. There is a limit to the insurance, always has been, even in Reagan's days. When the pot is empty, it's empty. Take SS. Good program but it's managed horribly and those who haven't put in, don't get to take out. It started under the best of intentions but then the "I want mine" crowd latched on to it and bingo ....it's broke.
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HopeR
02:54 AM on 11/24/2010
You are going to pay for it eventually. And I hope you are smart enough to get my drift.
05:05 PM on 11/23/2010
The money to extend these benefits is there and ready to be spent - it's called the Stimulus bill. Billions of usappropriated dollars have not been spent. It just seems logical to take that money and extend benefits - but since when has Congress been logical or ever used common sense. I don't get it - the money's there - spend it. Don't whine and complain about Repubs - JUST DO IT.
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Alwayspissedoffatsomeone
Fighting for Common Sense
06:48 PM on 11/23/2010
"I don't get it - the money's there - spend it. Don't whine and complain about Repubs - JUST DO IT." -- dadd

This is the reason we're in so deep right now. "Just spend it...Just spend it, just spend it."

..................(shaking head)..................
04:12 PM on 11/23/2010
Bottom line, many of the unemployed are in that situation based on their lack of value to a company. I work at a corp that had layoffs - 10% of the staff was cut in Feb of this year. The 10% that were cut were the lowest performers. Companies typically don't let go of good employees. I know this isn't always the case, but face it, these people were either let go or not hired for a reason.
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ImmanuelGoldstein
Founder of the "Brotherhood"
04:33 PM on 11/23/2010
Bottom line, we are laying of workers not because of inadequate production but because of overproduction.
And in any business SOMEBODY will be at the bottom 10%, Its statistically inevitable.
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HopeR
02:55 AM on 11/24/2010
You keep telling yourself these things if it makes you feel safer, better, more comfortable in your home.
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usna73
We are all in this together
03:41 PM on 11/23/2010
The number of those unemployed or underemployed ( U-6) for more than six months amplifies the magnitude of this problem.

Failing to extend UI to people who are legitimately seeking work is heartless, as well as foolish.

Each individual is likely multiplied at risk by other family members. These people, our fellow citizens, will become dependent upon the welfare programs of the states. The states are already at risk due to fiscal problems. Why exacerbate that situation? It is bad policy at a time when the nation as a whole is facing such a destructive waste of human capital.
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HUFFPOST SUPER USER
mjtaylor22
03:28 PM on 11/23/2010
Rep Maloney, I appreciate you writing this but tell the Dems to grow a pair and to stand together because that lack of cohesiveness and lack of message..is why you lost....the conservatives were angry...the progressives exhausted cause you guys compromise every progressive principle away...if you are passing right wing laden legislation.....We all might as well allow the republicans to vote their people in.......simply put if it looks republican talks republican then legislates at the whim of republicans, why do we need more Dems........
Get a cohesive message and stick together for Christ sakes.....and start up a third leg of progressive voices.. The DNC pr stinks...bring back Howard Dean...
QuantProgrammer
Cap welfare benefits at two kids.
02:53 PM on 11/23/2010
I have an idea Rep. Maloney- let's take some of the federal highway spending dollars and use it to extend tax cuts. We can then require people who've been on unemployment for more than a year to work 16 hours/week to get their checks. Lower construction costs AND we can extend unemployment without extending the deficit.
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guveqzero
Inventor and Innovator
03:20 PM on 11/23/2010
Why don't we just tax the people with jobs and start new businesses to compete with the corporations making glutinous profits?
QuantProgrammer
Cap welfare benefits at two kids.
04:54 PM on 11/23/2010
Or we could tax left-wing rhetoric. 5 cents for every post on HuffPost and we'd quickly have the deficit plugged.
09:55 PM on 11/25/2010
i would be willing to do that for 40 plus hours a week(with a smile)
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HUFFPOST SUPER USER
hismuse
02:17 PM on 11/23/2010
Honestly, I'd love for my husband to be able to work again but his career is almost non-existent anymore and when he tries to get jobs at lower levels (like more than a 50% pay cut) he's over-qualified. But I'm sure the country will do just fine when we all lose our houses and can't pay our bills.
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HUFFPOST SUPER USER
MiddleMolly
Working to better the USA!
02:07 PM on 11/23/2010
The unemployment rate is a bit better than it was last Thanksgiving, but it still isn't great.. and we don't really know how many people are unemployed if they have fallen through the counting cracks.

We also can't forget that people are still being laid off in droves. My husband was working last year, for the same steady company that he had worked at for over a decade. This year, he is unemployed, the victim of a change in management.

Jobs are few and far between, as anybody who has been out of work can attest to, We still desperately need UI extensions. And I believe that UI extensions in previous administrations have been funded by "emergency" funds... There hasn't been a push to cut something elsewhere.
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guveqzero
Inventor and Innovator
03:24 PM on 11/23/2010
Yeah, isn't it special that our government is funding senseless wars and handing out foreign aid while US citizens suffer. It's madness.
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HUFFPOST SUPER USER
blacksmithn
Iron, cold iron, is master of them all...
04:20 PM on 11/23/2010
And not only that, but seriously debating-- seriously!-- whether to extend tax cuts to the wealthiest among us. At a time when millions are unemployed and for every 5 applicants there is one job opening. It is indeed madness.
02:00 PM on 11/23/2010
the media won't even talk about this.........I haven't seen one news station even mention the unemployment extension expiring on November 30. Yet they talk for over a week on body scanning and body searching.
That is so UNIMPORTANT to us that are looking for a job and trying to survive. Both my husband and I lost our career jobs. Both my husband and I cannot find a new job that even compares to the old job. Even if we worked 24 hours EACH at minimum wage we would still LOSE everything.
We've lost our home, our car, our credit, our savings....we've lost so much. We are both college graduates, over 50 and have been looking for jobs for 2 years. We are over qualified or something.......but we aren't getting hired. The unemployment money feeds us, keeps us warm in the winter and allows us to keep our dogs.
Without unemployment extensions......we have NO hope.
WE do not qualify for food stamps or welfare because we have over $100.00 in the bank. YOU cannot get help until.......your house payments are not made, your water is shut off, you have no electricity, you have no heat..........we never thought we'd be in this situation........we shouldn't be in this situation. We did NOTHING wrong! It's so unfair it makes me sick!
WE need unemployment extensions or we have NO MONEY coming in. WHAT are we supposed to do?
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HUFFPOST SUPER USER
mjtaylor22
03:33 PM on 11/23/2010
Republicans got elected, and they dont care.. dems are so weak knees, it sickens me....
ma'm your on your own... click into survival mode....and go get yours......cause when the conservativbe are running things....they are so busy defunding the govt they wont think twice about you......
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HopeR
03:00 AM on 11/24/2010
I know! I am 59 and was laid off in July. My unemployment will end in January and I don't know what I will do either after that. Probably live in my car with my dog. This is absolutely pathetic and tragic. I feel for you! AARP says the longest unemployed group is people 55+. Do not give up your dogs no matter what! EVER! Do not put them in a shelter!
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
01:59 PM on 11/23/2010
Spending tax collections and borrowed money for green jobs, renewable energy, infrastructure renewal, welfare, unemployment, social security, national healthcare. and other similar non wealth creating expenditures only increase the "Soverign Debt" of the Nation that our children will have to work hard to pay back the loans that we promised the US Bond purchasers that our children would work hard and repay those loans that we used to pay for our government expenditures and imported consumer products.

The US manufacturing companies are hamstrung with health care payroll tax costs, unemployment payroll tax costs, social security and medicare payroll tax costs, environmental manufacturing costs, fringe (holiday & vacation) benefit payroll costs, OSHA compliance payroll costs, labor work rules and other anti-business laws and attitudes that make manufacturing products in the USA cost many times more expensive than the same product manufactured in in most foreign countries!

Are US jobs are gone forever?
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ImmanuelGoldstein
Founder of the "Brotherhood"
04:34 PM on 11/23/2010
So if we work for $1 hour and live in holes in the ground we'll have plenty of jobs?
In that case who cares?
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
10:50 AM on 11/24/2010
That will be the ultimate result of the "FREE TRADE LEGISLATION" that was created by our elected Republican and Democratic congressmen and senators!

The purchasing value of the US dollar might become a fraction of a penny when Industrial Foreigners stop loaning the US government money, and then your weekly paycheck might not buy one loaf of bread!

We are destroying the value of the US dollar with US government deficit spending!
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
01:58 PM on 11/23/2010
If some US company invents/develops some new product, and the product can be manufactured for a small fraction of the US manufacturing cost if the plant is constructed in some foreign country where the foreign labor and foreign environmental manufacturing costs are allowed and economically required to be used by the US Government Free Trade Laws, then why would any US company even consider constructing their plant in the USA and then using US labor which would cost many times as much to make each item?
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ImmanuelGoldstein
Founder of the "Brotherhood"
04:35 PM on 11/23/2010
I thought I already explained that to you. We do it through protectionism.
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
10:55 AM on 11/24/2010
You did and I totally agree that we should re-create the protectionism that the "Free Trade" laws eliminated!

Those "Free Trade" laws did away with our import taxes on foreign made products that allowed, caused, and economically required that our factories to fire their US employees and then to take advantage of lower labor and lower environmental manufacturing costs in foreign countries in order to meet the US consumer demand for the lowest prices.

I believe that President Obama should lead the US congress to create new legislation that will repeal all of the "Free Trade" laws, and other anti-business laws that were created during the past 40 years by almost all of the elected Democratic and Republican members of the US congress and then approved and administered by every past president during the last 40 years.

Only repeal of the "Free Trade" laws and other anti-business laws that caused US businesses to move their US factories and the associated jobs for US citizens overseas and lay off all of the US employees and take advantage of lower labor and environmental costs available in foreign countries will bring those jobs back to the USA, if it is not too late.
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
My micro-bio is no longer empty
10:24 PM on 11/23/2010
Perhaps because if we had a brain between us we wouldn't allow that product into our country unless the conditions of it's manufacture met our standards. To do any less, even one iota less, is a race to the bottom, and the competition has one foot on the finish line.

Any more questions?
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HUFFPOST SUPER USER
gerald4
licensed mechanical and electrical engineer
11:01 AM on 11/24/2010
Good Idea!

I do have a question

Can you overcome (outspend) the Foreign manufacturer's lobbyiests who probably spent hundreds of thousands of dollars on wine, food, women, song, vacations, cash, sexual services, corporate jobs for the (unemployable) children/wives/girlfriends of the congressmen and their aids who actually control the members of congress, and campaign contributions to entice (bribe) each of our US congressmen for the past 40 years to create all of these various "FREE TRADE LEGISLATION" and treaties that allowed, caused, and economically required our businesses to take advantage of the lower labor costs, lower payroll tax costs, lower business taxes, and lower environmental costs available in various foreign countries?

This "Free Trade Legislation" was not in the interest of the citizens of the USA, so why did our elected congressmen create this "Free Trade Legislation"?

Were our elected congressmen ignorant, stupid, dishonest, or some combination of these traits.
01:44 PM on 11/23/2010
At what point in time do unemployment benefits change into welfare?
02:08 PM on 11/23/2010
Never.Unemployment benefits is TAXABLE income,welfare is not.
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guveqzero
Inventor and Innovator
03:14 PM on 11/23/2010
When there is one job for every applicant. Can you understand something that simple?
This user has chosen to opt out of the Badges program
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01:23 PM on 11/23/2010
From NYT: American businesses earned profits at an annual rate of $1.66 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or non-inflation-adjusted terms.

WHERE ARE THE JOBS?
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MiddleMolly
Working to better the USA!
02:02 PM on 11/23/2010
We all know where those jobs are, and they aren't here. Corporations no longer need the American middle class to maintain their profits. In fact, the less American workers they use, the higher their profits.

This is not good at all, not good at all.
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04:21 PM on 11/23/2010
Can't see how the creeps can argue for more tax breaks.
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Edward Standley
opinionated jerk
10:12 PM on 11/23/2010
And another upshot for the wealthy? The more Americans without jobs, the longer the lines at the military recruiter's offices. More war=more equipment sales=more $$$. Perfect.