Put focus back on the unemployed
The Federal Reserve is talking like another stimulus package may be on the way. But with the official rate of unemployment at around 6 percent, commentator Robert Reich explains why our focus should be elsewhere.
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TEXT OF STORY
Scott Jagow: Some people in Congress are talking about a second stimulus package. I'm sure you've heard talk about that. Commentator Robert Reich says Congress should act -- just not now.
Robert Reich: When even the chairman of the Federal Reserve Board says Congress should pass a stimulus package, we know we're in trouble. The last stimulus of tax rebates stimulated lots of people to pay off some of their debts, which hardly stimulated the economy at all.
The coming stimulus package could be even more nonsensical. It would be voted on by a lame-duck Congress, many of whose members will want to reward campaign donors with juicy pieces of pork. Other lawmakers will see it as their last opportunity to include their pet project or tax perk, and some won't be accountable because they'll be out of office in a few weeks anyway. In other words, it'll be less pf a stimulus than a Christmas Tree.
Instead of this, Congress should do just one thing when it returns right after Election Day: Extend unemployment benefits.
So far this year, nearly a million jobs have been lost in the private sector. The official unemployment rate is 6.1 percent. But the Labor Department's most comprehensive measure -- which includes people who want to work but have stopped looking, and those working part-time who want full-time jobs -- is 11.0 percent, its highest rate in 14 years.
More than 1 in every 5 people out of work have been looking for six months or more. And many are running out of unemployment benefits. The National Employment Law Project estimates that nearly 800,000 will run out this month, and another 350,000 by December. That means they won't be able to pay their bills, including their mortgages. Already this year, almost half of mortgage delinquencies have been caused by homeowners' lacking income or employment.
America needs a comprehensive stimulus package, but it should be voted on by the next Congress under a new administration. And it should be part of a broader jobs strategy that would include rebuilding the nation's crumbling infrastructure, funding alternative sources of energy and creating tax incentives for businesses that generate new jobs.
For now, focus on the unemployed.
Jagow: Robert Reich teaches public policy at the University of California Berkeley.
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From flint, MI, 11/19/2008
I would like to thank-You first of all for doing what you are doing on this web page.My husband lost his job in Feb, 2007,and has literally put in HUNDREDS of resumes online,and has had some interviews,which are 2 hours away,and to no avail yet,I do not understand what the hold up is on this new extension ,which everyone seems to say is going to pass during this LAME DUCK session,but all that I have seen is the big 3 taking up most of the time,on top of the mortage crisis,(which I thought was the $700,000,000 bail out,and then the rest of the time,the Replublicans intruducing new members of the congress,and still no mention of the unemployment extension even being discussed ,once again.It is my understanding that this LAME DUCK session is going on until tomorrow,is that correct?I also heard that the only thing that will get passed is another unemployment extension,but if it is not put on the table,then how on earth is it going to get passed/We are a family who already lost our home,waiting for the first extension,now we rent,and my husband is going into a deep depression to the point where he has been referred to a phychologist to try and help,and from where I am standing as his wife,what will help is the Government to just pass this bill,so my husband does not have to worry as much ,while continuing to look for employment,which is only going to get even harder as time goes on,and more and more people get laid off,I have also written to my Govorner,my Senate ect...and have not received a responce from the Govorner`s office,but I did receive one from the Senator,who just said,our state is not going to do anything,and we need to just wait for this LAME DUCK session.So,what next if it is not brought up tomorrow?No Christmas for our children,more people having to go to charities,more people having to rely on State Aid,when all they have to do is just pass this ,I also feel like us citizens,who pay their wages to work for us is totally getting screwed!!!They do not have to worry about actually getting up at 3:30 in the morning tomorrow to stand in line for 2 hours to actually give plasma for 2 weeks just to get our bills paid that are due at the end of the month.Do they realize how humbling that is?We were a middle class family,now I don`t know what we are,I honestly think we are way below the poverty level,and the only reason why our rent and one bill a month can get paid is because I am on ssdi at the moment.Where is the help ,how many people have to go through what so many families are going through right now to get it in there heads that the first thing on the agenda should have been to pass this other extension,and then deal with the others.I do not know about anyone else but I hate watching the news anymore,because where I come from which is Flint,Michigan,all I hear is more lay offs ,and the wall street bail out ,now the big 3 bail out,which I do not care what anyone says,the union has a lot to do with why US is going down with these companies.I have worked in a factory in the past ,and when there was no work ,we were to draw unemployment,not still get 95% of their pay check,and we know a lot of GM workers ,and all they do is brag about how they spend more times on bath room breaks ect.. then actually working!GM has so many other companies all around the world ,where they are prospering,but that is because they do not have the UNION threating to strike if they do not get their way when ever there is another contract coming up.It has also been mentioned in this LAME DUCK session how much it is costing GM to get people to take a early retirement and such,and I do not know about where you live ,but here in Michigan,the big 3 (thanks to the union)gets actual money(alot of money )to leave,and these other little plants that supply these big 3 ,do not get that luxery,so why do they?,and now that the union has tapped them dry,now they need Government assistance!All the rest of want ,who lost there jobs through no fault of our own doings is another extension!!!Come on!When does the Government start to care about the employees that are not part of the big 3,while they worked for them,they had their piece of the pie,and then they turn around and after getting 150,000-200,000,they turn around and go get another high paying job!!There are so many things that are not being told about this whole thing,anfd it is about time people start standing up for themselfs and not ask for a piece of the pie ,but demand it!!I believe if you already had a buyout ,then step aside and let someone who did not work for any of the big 3 ,because of no family ties,and let the other qualified people get these jobs from other companies,and get a piece of the pie before they are too old to.As for now,(I know I went off track,there are just so many things that are just so *** backwards in this country,and I feel like we are somewhat of the lucky ones in a way,we have food on our table,we have a house over our head(for now)and we have love in our home,we are not homeless in this cold,with no family to turn to,but SIGN THIS BILL PLEASE BEFORE IT IS ONCE AGAIN TOO LATE,AND EVERYONE FALLS BEHIND ON EVERYTHING AGAIN,AND JUST THE STRESS THIS CAUSES,NOT TO MENTION THE CRIME RATE!!People are actually breaking into homes here in the daylight ,and stealing FOOD!!The Government needs to hear from the normal american citizens,who has worked all of there lives,to find themselfs in this mess?!I am sure by now,other countries are laughing at us,we are so worried about re building another country (we all know who I am talking about)who has its own surplus,and we have our own slowely losing everything!!I used to be proud of my country,but now,I do not trust my Government AT ALL anymore!!I will not waste anymore time,but if anyone finds out ANYTHING about this extension,please let us all know,if anything,it will relieve people somewhat,at least we will know we will be able to pay our bills.
From So Plainfield, NJ, 11/06/2008
My benifits expired oct,5. 54 job apps
later, 3 shots for a tumor in my foot,
not enough money to cover rent much less
my cobra, this is it for me. Pre existing condition, I can go on and on but honestly this is too depressing.
From NY, 11/02/2008
Thanks so much for remembering the unemployed. It seems that we have gotten lost in the Bailout Wall Street and Election 2008 shuffle. My family is suffering and my self-respect and dignity has taken a plummet into the abyss. I hope that Congress will support an extension of unemployment benefits, as this economy is not even reached it's worst yet.
From McDonough, GA, 10/30/2008
Praise GOD - Thank you Robert for this article. I have sent letters to my Senators in GA and have not gotten a response from the most recent when I asked why wasn't the HR6867 bill passed before the recess prior to the election? I do not understand how Washington could be so insensitive to people who have worked dilligently and have been unsuccessful in securing a job after layoffs..because there are no JOBS. I worked in corporate human resources management for 21 years. My position was eliminated last year June 2007 because of a merger and layoff. I have interviewed with numerous companies who have told me unfortunatley after the interview, there is a hiring freeze or for budgetary reasons, the position has been put on hold until further notice. Unemployment in GA is $320 a week, before taxes. This is nothing. But it helps to at least put gas in the car and food on your table and utilities. I cannot believe our elected officials could be so insensitive about the unemployed on MY Street, but jump through hurdles to bail out AIG and WALLSTREET! I am a tax paying, registered voter who feels that once again the AMERICAN PEOPLE have been treated like SECOND CLASS CITIZENS in this great country we like to call the United States of AMERICA!
From CT, 10/29/2008
It is nice to listen to someone that thinks before he speaks on a consistent basis. Thanks Robert.
10/29/2008
Way to go Robert! Create jobs!!
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