Jobless benefits start ending on Sunday

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Tall's picture
Tall
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Posts: 564
Jobless benefits start ending on Sunday

So, what do folks think-

1) should we pay those unemplyed with federal money who have exhausted their state resources thereby increasing the federal deficit,

or 2) should we as a society deal with the potential social and humanitarian consequences of millions of  people without income? 

or 3) is there enough of a social fabric in the US  (church, community, extended family etc) that people will independently keep those affected from falling to the bottom?

I don't know, maybe there are other options I have not seen- the rapid rise of a black/grey market, etc. - but am interested in other's thoughts.

 

Excerpt from:

http://money.cnn.com/2010/02/26/news/economy/unemployment_insurance/

Jobless benefits start ending on Sunday

By Tami Luhby, senior writerFebruary 26, 2010: 3:55 PM ET

 

NEW YORK (CNNMoney.com) -- Depending on extended unemployment benefits to see you through the Great Recession?

You'd better not: The Senate failed to push back the Feb. 28 deadline to apply for this safety net.

Starting Monday, the jobless will no longer be able to apply for federal unemployment benefits or the COBRA health insurance subsidy.

Federal unemployment benefits kick in after the basic state-funded 26 weeks of coverage expire. During the downturn, Congress has approved up to an additional 73 weeks, which it funds.

These federal benefit weeks are divided into tiers, and the jobless must apply each time they move into a new tier.

Because the Senate did not act, the jobless will now stop getting checks once they run out of their state benefits or current tier of federal benefits.

That could be devastating to the unemployed who were counting on that income. In total, more than one million people could stop getting checks next month, with nearly 5 million running out of benefits by June, according to the National Unemployment Law Project.

Lawmakers repeatedly tried to approve a 30-day extension this week, but each time, Sen. Jim Bunning, R-Ky., prevented the $10 billion measure from passing, saying it needs to be paid for first.

kaman's picture
kaman
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Posts: 51
Re: Jobless benefits start ending on Sunday

We MUST break that cycle of dependence on debt, which is what extending the UI benefits is, otherwise you'd better get used to your serf suit.  I know it's not easy right now for people to lose that little bit of income they have from UI, but it has to end sometime, better now than later.  Returning over and over to the government debt teat is preventing many from wanting to bite the hand that feeds them, yet with every installment you lose more of your rights and your freedoms, while your government gains more control over your life.  You're hooked, and the feds are reeling you in.  If your situation is so bad that UI benefits are the only thing keeping you afloat - you're already sunk.

Jim Bunning did a good thing by not voting in favor of the UI extension, which was being done in a 'show of hands' vs an accountable 'sign here' vote.  Legislators didn't want their names attached because they don't want to be held accountable, which is exactly why we find ourselves in the position we're in today needing UI benefit extension after extension.  The decades of back room deals, pork barrel spending, finger pointing, BS, and lack of accountability has to stop!  An alcoholic needs to stop drinking before they can say they're on the road to recovery, and that involves doing what's right instead of what's easy.

Extending UI benefits (again) is a bribe, nothing else.  A bribe you pay for dearly, (today, tomorrow, as well as your family of future generations).   If we ever hope to bring about a return to common sense and accountability in this country and economy, is has to start with each and every one of us doing what we know needs to be done regardless of the difficulty or hardship.  We had better hope there is enough left of the social fabric in America for us to help each other for without it we are doomed as a country and a free people.

 

 

"If ye love wealth better than liberty, the tranquility of servitude than the animating contest of freedom—go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that ye were our countrymen!" - Samuel Adams

Subprime JD's picture
Subprime JD
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Re: Jobless benefits start ending on Sunday

I clearly understand the arguments against extending the UI. On the other hand, millions will fall through the cracks and will end up homeless. Its not a level playing field and the system will continue to chug along for quite some time. Ive seen the tent cities in SOCAL and they will continue to grow. 5 million people to get cut off by May. If this takes place expect crime to RISE as those who have no bread will take it from others as they have dismal chances for employment. Do realize that as one loses homes, cell phones, cars and other basic necessities it gets even harder getting a job thereby exacerbating the negative feedback loop.

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Subprime JD
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Posts: 562
Re: Jobless benefits start ending on Sunday

Let me also add this.

The structural problems in the US remain. Out of control outsourcing continues as now even accountants, lawyers, and engineers are at risk. The PTB have a strangehold on this country and its government. Notice how income inequality has skyrocketed in the last 30 yrs? Well, this is mostly caused by outsourcing as productivity and margins rise, the executives make the cash will the worker gets cut. As a strong believer of free markets outsourcing is s different matter. I believe in free markets within the context of a SOVEREIGN NATION. Thats right, the governments role is to protect the soveriegnty of the nation. For example, when the US GOV allows US based companies to set up shop in China and shuts down US factories, this begin the process of vendor finance. They build, we borrow and they lend to us so we can buy. Now we owe 2 trillion in US gov debt alone to China and Japan. Has the US not lost some of its sovereignty to these FOREIGN nations??? Did not rampant treasonous ourtsourcing by these American companies contribute to the loss of soveriegnty of our nation??

Also, the financial support to wall street continues unabated. This topic has been discussed a million times on this site. So, with gov supporting banks to keep housing overly inflated, whats the unemployed to do? UI has been the only bailout for the main street serfs. Maybe if we cut the support to the top could we then cut the support to the bottom. But starting from the bottom up is just messed up and cruel. Besides, there is a good chance these people will go to the military as a means of last resort. This further strenghtens the police state. Yuck.

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Will
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Re: Jobless benefits start ending on Sunday

Don't worry guys, they will pass extended UI benefits.  I think we are beginning to see the insane IOU bailout effort shifted more toward Main Street and less to Wall Street.  They surely know that all hell will break loose if they let millions become hungry and homeless at the same time they are telling us we are on the road to recovery.

Sooner or later ALL the bailing out will certainly come to some tragic end.  I agree that we cannot continue on this cycle of debt, of buying each other off with loans that can never be repaid.  Everyone here knows it's tragic political theatre at this point and that we are just paying a titanic price for attempting to delay the PAIN that the market is naturally attempting to administer across all sectors of the economy.  The longer we refuse to take each of our deserved lashings for our complicity in creating this catastrophe, the greater and greater the pain will be when there is no longer any where to hide.  We can't be too far from the tipping point when it's so obvious that the debts of the developed nations are absolutely impossible to repay without nuking everyone's net worth via hyper inflation.

However, if I am wrong about them extending UI benefits, then I have a feeling we better finish stocking up on ammo, food, PMs, etc. and get ready to watch the start of TSHTF sometime before the end of the year...

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John99
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Re: Jobless benefits start ending on Sunday

As more and more money is stolen from the system, growing numbers of people will join the hungry. This is a time of great temptation for those who are still eating, to turn their backs on the poor and homeless, and defend their own incomes and status. Things are easily rationalized until, each of us personally, lose our jobs, and join the growing masses. Remember the '30's.

We have to get active to change the system, while it still can be changed, before the door slams shut. The system remains intact because we are still supporting it. We have to stop supporting it, or work up a good list of rationalizations why the poor don't really matter.

We are better informed than our forefathers. We know the scam that is going on, yet we don't connect the dots.

We, the silent majority, are the problem. The system sits upon our shoulders, and while we are grumbling about the corruption and inequality of it, as long as we continue to support it, we guarantee it's continuance.

The Evolutionary Ape's picture
The Evolutionary Ape
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Posts: 62
Re: Jobless benefits start ending on Sunday

Working in accounting and payroll for a small business, the employer pays into unemployment benefits through FUTA (Federal Unemployment Tax Act) and SUTA (the state unemployment equivalent).  Sure the employee does not directly pay for it, but when creating a budget or considering raises, that cost is factored into the overall equation.  So in a way the employees compensation bears the expense.  I don't think the money should come from debt, but at the same time, if you are bailing out banks, you damn better bail out the taxpayer.  Hell tax bank bonuses to restore the fund and the problem would be solved.

It's disgusting that bank CEO's can take million dollar bonuses thanks to the money from the very taxpayers that are now unemployed.  The same people who are now unemployed are some of the same people who were being robbed in the fall of 2008 to bailout the banks that are now not lending money to small businesses so that they can hire the unemployed.  Instead they'd rather take the stolen funds and go gambling on Wall Street.

I don't fault Bunning as he's been consistent since HR 1424, but how about holding up the next Fannie or AIG bailout and give the taxpayers a break on this one.  If they don't pass this (which I think they will) things should get pretty interesting very quickly.

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Will
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Posts: 81
Re: Jobless benefits start ending on Sunday
John99 wrote:

As more and more money is stolen from the system, growing numbers of people will join the hungry. This is a time of great temptation for those who are still eating, to turn their backs on the poor and homeless, and defend their own incomes and status. Things are easily rationalized until, each of us personally, lose our jobs, and join the growing masses. Remember the '30's.

We have to get active to change the system, while it still can be changed, before the door slams shut. The system remains intact because we are still supporting it. We have to stop supporting it, or work up a good list of rationalizations why the poor don't really matter.

We are better informed than our forefathers. We know the scam that is going on, yet we don't connect the dots.

We, the silent majority, are the problem. The system sits upon our shoulders, and while we are grumbling about the corruption and inequality of it, as long as we continue to support it, we guarantee it's continuance.

I agree that we need to stop whining and empower ourselves to take action in any way we can.  However, at the same time, I fear that too many have become too fat and comfortable and won't get off their asses until some threshold of the population start to go physically hungry and desperate.  By then it might be too late to avoid some blood in the streets.  

If they can successfully keep the UI benefits propped up for another year or so, we may still have a chance for a peaceful movement and positive reform of the system.  If they cut millions off of the UI teat now, then buckle your seat belts folks, this could be the beginning of a long, wild and scary ride.   

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