Extend Benefits for Jobless, Not Tax Cuts for Rich
America's long-term unemployed - an estimated 6 million or more - constitute the single newest and biggest social problem facing America.
Their unemployment benefits are about to run out, and the lame-duck Congress might not have the votes to extend them. (You can forget about the next Congress.)
The long-term unemployed can't get work because there are still five people needing work for every job opening. And the long-term jobless often are at the end of the job line: Either they don't have the right skills or enough education, or they have been out of work so long that prospective employers are nervous about hiring them.
They're also a big problem for the economy. Without enough money in their pockets, they and their families can't pay their mortgages, a situation that keeps fueling the mortgage crisis. Nor can they replace worn-out cars and clothing or buy much of anything else, which is a drag on the economy.
Yet Republicans and some Blue Dog Democrats in Congress say we can't afford another extension of jobless benefits. The deficit is too big.
But wait. These are the same members of Congress who say we should extend the Bush tax cuts for the wealthy.
Extending the Bush tax cuts for the people at the top would cost more than extending unemployment benefits for struggling families without a breadwinner.
These families need the money. The rich don't.
Moreover, extending the Bush tax cuts to millionaires won't stimulate the economy. That's because the well-off spend a smaller fraction of their income than everyone else. That's what it means to be wealthy - you already have most of what you want.
People without jobs, and their families, are likely to spend every penny of unemployment benefits they receive. That will go back into the economy and save or create jobs.
A Labor Department report shows that for every $1 spent on unemployment insurance, $2 are spent in the economy. If you don't believe the Labor Department, maybe you'll believe Goldman Sachs analyst Alec Phillips, who estimates that if unemployment benefits were allowed to expire, the American economy would slow by a half a percent.
Republicans are still spouting daffy Social Darwinism. Cutting taxes on the rich is better than helping the unemployed, they say, because the rich will create jobs with their extra money, while giving money to the unemployed reduces their desire to look for work.
Rubbish. The rich have all the work incentive they need. The top 1 percent is already reaping almost a quarter of the total national income. That's their highest share since 1928.
Besides, the 2001 and 2003 Bush tax cuts for the top never trickled down. Between 2002 and 2007, the median wage dropped, adjusted for inflation. And job growth was pathetic.
Jobless benefits don't deter the unemployed from finding work. In most states, unemployment benefits are a fraction of former wages. And as long as unemployment remains sky-high, there are no jobs to be had anyway.
The economic downturn was hardly their fault. If anyone is to blame, it's the highfliers on Wall Street who gambled away other people's money, and the rich denizens of corporate executive suites who have sliced payrolls in order to show higher profits (and get more money from their stock options).
So why reward the people at the top with an extension of the Bush tax cuts? It would be far better to use the money to extend jobless benefits to hardworking Americans who got the boot.
Quick action is needed. About 800,000 unemployed workers will run out of benefits this week. Two million more will stop receiving benefits by the end of December. Millions more after that.
The choice couldn't be clearer. Extend jobless benefits for struggling families. Don't extend tax breaks for millionaires.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
America's long-term unemployed - an estimated 6 million or more - constitute the single newest and biggest social problem facing America.
Their unemployment benefits are about to run out, and the lame-duck Congress might not have the votes to extend them. (You can forget about the next Congress.)
The long-term unemployed can't get work because there are still five people needing work for every job opening. And the long-term jobless often are at the end of the job line: Either they don't have the right skills or enough education, or they have been out of work so long that prospective employers are nervous about hiring them.
They're also a big problem for the economy. Without enough money in their pockets, they and their families can't pay their mortgages, a situation that keeps fueling the mortgage crisis. Nor can they replace worn-out cars and clothing or buy much of anything else, which is a drag on the economy.
Yet Republicans and some Blue Dog Democrats in Congress say we can't afford another extension of jobless benefits. The deficit is too big.
But wait. These are the same members of Congress who say we should extend the Bush tax cuts for the wealthy.
Extending the Bush tax cuts for the people at the top would cost more than extending unemployment benefits for struggling families without a breadwinner.
These families need the money. The rich don't.
Moreover, extending the Bush tax cuts to millionaires won't stimulate the economy. That's because the well-off spend a smaller fraction of their income than everyone else. That's what it means to be wealthy - you already have most of what you want.
People without jobs, and their families, are likely to spend every penny of unemployment benefits they receive. That will go back into the economy and save or create jobs.
A Labor Department report shows that for every $1 spent on unemployment insurance, $2 are spent in the economy. If you don't believe the Labor Department, maybe you'll believe Goldman Sachs analyst Alec Phillips, who estimates that if unemployment benefits were allowed to expire, the American economy would slow by a half a percent.
Republicans are still spouting daffy Social Darwinism. Cutting taxes on the rich is better than helping the unemployed, they say, because the rich will create jobs with their extra money, while giving money to the unemployed reduces their desire to look for work.
Rubbish. The rich have all the work incentive they need. The top 1 percent is already reaping almost a quarter of the total national income. That's their highest share since 1928.
Besides, the 2001 and 2003 Bush tax cuts for the top never trickled down. Between 2002 and 2007, the median wage dropped, adjusted for inflation. And job growth was pathetic.
Jobless benefits don't deter the unemployed from finding work. In most states, unemployment benefits are a fraction of former wages. And as long as unemployment remains sky-high, there are no jobs to be had anyway.
The economic downturn was hardly their fault. If anyone is to blame, it's the highfliers on Wall Street who gambled away other people's money, and the rich denizens of corporate executive suites who have sliced payrolls in order to show higher profits (and get more money from their stock options).
So why reward the people at the top with an extension of the Bush tax cuts? It would be far better to use the money to extend jobless benefits to hardworking Americans who got the boot.
Quick action is needed. About 800,000 unemployed workers will run out of benefits this week. Two million more will stop receiving benefits by the end of December. Millions more after that.
The choice couldn't be clearer. Extend jobless benefits for struggling families. Don't extend tax breaks for millionaires.
America's long-term unemployed - an estimated 6 million or more - constitute the single newest and biggest social problem facing America.
Their unemployment benefits are about to run out, and the lame-duck Congress might not have the votes to extend them. (You can forget about the next Congress.)
The long-term unemployed can't get work because there are still five people needing work for every job opening. And the long-term jobless often are at the end of the job line: Either they don't have the right skills or enough education, or they have been out of work so long that prospective employers are nervous about hiring them.
They're also a big problem for the economy. Without enough money in their pockets, they and their families can't pay their mortgages, a situation that keeps fueling the mortgage crisis. Nor can they replace worn-out cars and clothing or buy much of anything else, which is a drag on the economy.
Yet Republicans and some Blue Dog Democrats in Congress say we can't afford another extension of jobless benefits. The deficit is too big.
But wait. These are the same members of Congress who say we should extend the Bush tax cuts for the wealthy.
Extending the Bush tax cuts for the people at the top would cost more than extending unemployment benefits for struggling families without a breadwinner.
These families need the money. The rich don't.
Moreover, extending the Bush tax cuts to millionaires won't stimulate the economy. That's because the well-off spend a smaller fraction of their income than everyone else. That's what it means to be wealthy - you already have most of what you want.
People without jobs, and their families, are likely to spend every penny of unemployment benefits they receive. That will go back into the economy and save or create jobs.
A Labor Department report shows that for every $1 spent on unemployment insurance, $2 are spent in the economy. If you don't believe the Labor Department, maybe you'll believe Goldman Sachs analyst Alec Phillips, who estimates that if unemployment benefits were allowed to expire, the American economy would slow by a half a percent.
Republicans are still spouting daffy Social Darwinism. Cutting taxes on the rich is better than helping the unemployed, they say, because the rich will create jobs with their extra money, while giving money to the unemployed reduces their desire to look for work.
Rubbish. The rich have all the work incentive they need. The top 1 percent is already reaping almost a quarter of the total national income. That's their highest share since 1928.
Besides, the 2001 and 2003 Bush tax cuts for the top never trickled down. Between 2002 and 2007, the median wage dropped, adjusted for inflation. And job growth was pathetic.
Jobless benefits don't deter the unemployed from finding work. In most states, unemployment benefits are a fraction of former wages. And as long as unemployment remains sky-high, there are no jobs to be had anyway.
The economic downturn was hardly their fault. If anyone is to blame, it's the highfliers on Wall Street who gambled away other people's money, and the rich denizens of corporate executive suites who have sliced payrolls in order to show higher profits (and get more money from their stock options).
So why reward the people at the top with an extension of the Bush tax cuts? It would be far better to use the money to extend jobless benefits to hardworking Americans who got the boot.
Quick action is needed. About 800,000 unemployed workers will run out of benefits this week. Two million more will stop receiving benefits by the end of December. Millions more after that.
The choice couldn't be clearer. Extend jobless benefits for struggling families. Don't extend tax breaks for millionaires.