An extension of unemployment benefits for millions of jobless Americans overcame a Republican filibuster within the Senate Tuesday. Since this has been stalled since May, around 2 million Americans no longer have their job benefits. The U.S. unemployment rate is stuck at 9.5 percent. There are five times more individuals looking for work than you will find available jobs. Longer unemployment benefits could stimulate the economy according Democrats. Some Republicans say unemployment benefits discourage people from looking for jobs.
Republican filibuster no longer controls unemployment benefits
The Senate voted 60-40 to break the Republican filibuster on the unemployment benefits extension. The vote took place minutes after Carte Goodwin was sworn in as the new Democratic senator from West Virginia to replace the late Robert C. Byrd. Rather than allowing final consideration, Republicans delayed the vote making Democrats angry, even after the vote had already gone through, reports the New York Times. Since Democrats didn’t lower the U.S. unemployment rate by creating new jobs, they had to extend unemployment benefits as outlined by Republicans.
Extending through November are unemployment benefits
Everyone who had their benefits expire could be covered by unemployment benefits through November. The House and Obama nevertheless have to pass the bills, reports USA Today. Republicans want to help lower unemployment rates but think the $ 33.9 billion bill shouldn’t be placed into action unless the spending budget can be balanced still with cuts elsewhere. Obama believes that Republicans are just putting spending “on the backs of the unemployed” instead of trying to cut taxes for the wealthy.
Recovering the economy with unemployment benefits
The Congressional Budget Office says extending jobless benefits, which average nearly $ 310 a week, is probably the most efficient way for government policymakers to stimulate a weak economy. Basic needs like gas, food, and rent, are what unemployed benefits end up going to. According to the CBO, each and every $ 1 spent on benefits generates 70 cents to $ 1.90 in economic growth.
Political divide gets stronger
After so much personal involvement from Obama in passing the unemployment extension, Republicans are way less likely to help him pass any kind of bill. As outlined by the Los Angeles Times, the political divide in congress got stronger after Tuesdays Senate vote making anything before November’s elections difficult to pass. Yet Democrats intend to press forward with new initiatives to promote job creation.
Politics playing with unemployed Americans
Democrats are hoping job creation and economic recovery is right around the corner with November elections nearing. Republicans are trying to sabotage any Democratic achievements at all costs, in hopes that a fragile economy will improve their chances to regain control of Congress.
Find more details on this topic
New York Times
nytimes.com/2010/07/21/us/politics/21jobs.html?ref=us
USA Today
usatoday.com/money/economy/employment/2010-07-21-1Ajobless21_ST_N.htm
Los Angeles Times
articles.latimes.com/2010/jul/20/nation/la-na-jobless-20100721
