Unemployment

Emergency Extended Unemployment Insurance Compensation Act of 2008

hmoroz — Fri, 13 Jun 2008 16:52:47 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Percentage increase in the unemployment rate from April to May of 2008: 0.5

Most recent month in which a similarly large increase in the unemployment rate occurred: 2/1986

Estimated percentage of the unemployed who will be unemployed for longer than six months by the end of 2009, according to the Economic Policy Institute: 20.8

Number of states with an unemployment rate greater than 6.0% as of April 2008, including Washington D.C.: 5

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits, in dollars: 1.64

Unemployment rate in Michigan in April 2008: 6.9

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. The American economy remains at risk of recession and a growing number of middle-class Americans fear being thrown out of work as a result of the downturn. The unemployment rate jumped 0.5% from April to May of 2008, the largest single-month increase since 1986. 8.5 million Americans are out of a job and the percentage of workers who are underemployed – a measure that includes individuals who are working part-time because they cannot find full-time work – is 9.7%. 1.6 million people, or 18% of the unemployed, have been unemployed for 27 weeks or more. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit during the economic downturn, people who want to work but have lost their means of support through no fault of their own. Moreover, the unemployed are most likely to spend their unemployment benefits immediately, providing an economic jolt that will enhance the stimulus generated by the tax rebates sent out earlier this year. Indeed, extension of unemployment benefits provides $1.64 in stimulus for every dollar spent, making the policy one of the most effective stimulus measures.

Quotes from Experts

Beyond this Bill

Additional Resources

"Making the Case - Again - for Economic Rebound," from the Economic Policy Institute

Unemployment Insurance and the Stimulus Debate, from the Center for Budget and Policy Priorities

Amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2008

hmoroz — Fri, 16 May 2008 18:23:04 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Approximate total award that service members can currently receive toward their education, in dollars: 39,600

Average total charges, including tuition and fees and room and board, for four years at an in-state public college or university in 2007, in dollars: 54,356

Estimated percentage of the unemployed who will be unemployed for longer than six months by the end of 2009, according to the Economic Policy Institute: 20.8

Number of states with an unemployment rate greater than 6.0% as of April 2008, including Washington D.C.: 5

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits, in dollars: 1.64

Unemployment rate in Michigan in April 2008: 6.9%

Minimum estimated cost of the Iraq War paid by Michigan as of May 2008, in dollars: 13 billion

Estimated 10-year cost of extending unemployment insurance benefits, in dollars: 11.1 billion

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. The American economy remains at risk of recession and the employment picture is dim. In the first four months of 2008, the American economy lost 260,000 jobs and 400,000 workers were classified as “discouraged,” wanting work but believing that no jobs were available for them. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit during the economic downturn. Moreover, the unemployed are most likely to spend their unemployment benefits immediately, providing an economic jolt that will enhance the stimulus generated by the tax rebates sent out earlier this year. Indeed, extension of unemployment benefits provides $1.64 in stimulus for every dollar spent, making the policy one of the most effective stimulus measures.

The “New GI Bill” measures are also important. Our nation owes those young people who have volunteered to fight for the United States a fair opportunity to enter the middle class. After World War II, the education and other benefits of the GI Bill allowed unprecedented numbers of returning soldiers to access a middle-class standard of living, but today’s GI Bill, intended for peacetime, does not provide adequate benefits. This amendment would change that. Veterans of the Iraq and Afghanistan Wars face not only the challenges of readjustment to civilian life, frequently complicated by injury or mental illness, but the rising cost of higher education impacting middle-class Americans across the United States. The current GI bill covers only 60-70% of the cost of tuition at a four-year public university and less than two years at a private college. The Amendment to the supplemental appropriations bill would permit the equivalent of full scholarships to public institutions of higher learning to any service member who completed three years of service.

Imposing a moratorium on Administration-proposed Medicaid regulations will ensure continued health care access for aspiring middle-class beneficiaries and prevent a devastating loss of funding to states, public hospitals, and local schools already struggling during the economic downturn.

The provisions that increase accountability and transparency in federal contracting are welcome, but are not as comprehensive as those included in the Accountability in Contracting Act, passed by the House last year.

The Senate version contains welcome funding for programs that benefit aspiring middle-class and middle-class Americans.

Quotes from Experts

Beyond this Bill

Additional Resources

"Making the Case - Again - for Economic Rebound," from the Economic Policy Institute

Unemployment Insurance and the Stimulus Debate, from the Center for Budget and Policy Priorities

"A New GI Bill," from the Iraq and Afghanistan Veterans of America

Economic Stimulus Act of 2008

hmoroz — Thu, 07 Feb 2008 17:35:58 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of senior citizens who would receive tax rebates under this bill but not the House stimulus bill, according to the Senate Majority Leader: 21.5 million

Approximate number of workers nationwide projected to run out of unemployment benefits before finding work in the first six months of 2008 unless benefits are extended: 1.3 million

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits: $1.64

Amount of stimulus produced for every $1 in tax cuts targeted to low-income households: $1.19

Amount of stimulus produced for every $1 in tax cuts provided through a business investment write off policy: $0.24

Number of different stimulus policies implemented under President Bush that were more effective per public dollar than business investment incentives, according to an Economy.com study: 7

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. There is increasing evidence that the economy faces a high risk of recession which could throw millions of middle-class Americans out of work, reduce income and health insurance coverage, and increase poverty. A smart economic stimulus plan could prevent the downturn or soften its effects, but not just any stimulus package will do. To be effective, an economic stimulus package must direct money to those who will spend it quickly, boosting consumer demand and prompting increased production and economic growth. This Senate bill provides even more effective stimulus than the House legislation because the tax rebates are even more closely targeted to cash-strapped middle-class and aspiring middle-class Americans, who are more likely than wealthier people to spend the money they receive immediately, rather than saving it. The inclusion of seniors living on Social Security and veterans living on disability benefits is important for the same reason: not only is it an issue of basic fairness to include these groups but, because they are likely to spend the money quickly, their inclusion compounds the stimulative impact.

The extension of unemployment benefits and the expansion of funding for low-income heating assistance are extremely positive additions to the bill. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit by an economic downturn while also providing the most cost-effective boost to the economy. Unemployment is already on the rise and it takes longer to find work during an economic downturn when jobs are scarce. People who are out of work tend to spend nearly all of the money they receive in government benefits very quickly, so unemployment benefits provide the quick jolt to consumer spending that the economy needs. What’s more, extending unemployment benefits is one of the most effective stimulus measures yet conceived, providing $1.64 in stimulus for every dollar spent. Meanwhile home heating assistance eases the burden on current and aspiring middle-class families trying to pay high energy bills, freeing up cash that can be spent on other necessities.

The renewable energy tax incentives in the bill are not likely to be effective as short-term economic stimulus, but do represent an important investment in the nation’s energy future. Meanwhile, the business tax cuts, a product of negotiation between the Bush Administration and Congress, are less positive for the middle class because they provide little stimulative effect but deprive the public of significant revenue and increase deficits. Offering tax incentives for business investment frequently fails to generate substantial economic growth because many businesses use the tax cuts for investments they planned to undertake anyway, costing the public lost revenue but creating no additional economic activity. Another drawback is that it takes considerable time for businesses to make new investments and for investments to result in increased employment or purchasing. Yet to be most effective, economic stimulus should have a rapid impact on the economy. Finally, the Center on Budget and Policy Priorities points out that business incentives harm state budgets, since state and federal tax codes are linked. Many states are already facing a revenue crunch due to the economic downturn and, unlike the federal government, cannot run budget deficits. The result could be cuts in state and local services that middle-class Americans rely on, from education to road maintenance to public safety.

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Finance Committee Measure More Effective As Stimulus Than House Bill, Despite Some Problems,” from the Center for Budget and Policy Priorities

“Strategy for Economic Rebound: Smart Stimulus to Counteract the Economic Slowdown,” from the Economic Policy Institute

“Options for Responding to Short-Term Economic Weakness,” from the Congressional Budget Office

Unemployment Insurance Modernization Act of 2007

atraub — Mon, 08 Oct 2007 13:47:17 -0400

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

Back to Work Investment Act of 2004

atraub — Mon, 24 Sep 2007 15:59:44 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Increase in economic growth for every dollar spent on unemployment insurance: $2.15

Ratio of job openings to unemployed workers when the bill was being debated in early2004: 1:3

Number of unemployed Americans who used up their unemployment benefits in 2004 without finding a job: 1.3 million

Maximum value of services at One-Stop Career Centers that unemployed workers currently qualify for: unlimited

Maximum value of services at One-Stop Career Centers that unemployed workers with Personal Reemployment Accounts would qualify for: $3,000

Percentage of jobless workers who fell into poverty after being out of work for four months or more, even though they were receiving unemployment benefits: 25

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes. 2004 set a grim record for the number of unemployed Americans who used up all their unemployment benefits before finding a job. Unemployment insurance is an enormously successful program that provides a vital safety net, not only for those who are out of work, but also for local businesses in hard-hit communities. Indeed, studies conclude that the nation sees $2.15 in economic growth for every $1.00 spent on traditional unemployment insurance. But rather than allowing a vote on the much-needed extension of this efficient program, Congress proposed experimenting with Personal Retirement Accounts (PRAs). Based on the misguided view that the most effective government programs should be replaced by market mechanisms, these accounts do nothing for people who have exhausted their benefits. They replace unlimited access to career centers with a $3,000 cap that may not be adequate to purchase needed training for many displaced workers. This bill would also place the burden of administering PRAs and protecting individuals from job training scams onto the states, creating a new unfunded mandate. Perhaps most troubling, the reemployment bonus provision gives workers money for finding a new job quickly, presuming that unemployment is high because displaced workers are refusing to take jobs. The fact is that as U.S. jobs are increasingly shifted overseas and the pace of new job creation at home remains sluggish, middle-class workers’ prospects for finding new employment quickly are bleak. The Personal Retirement Account program fails to address the most pressing needs of the unemployed.

Unemployment

Emergency Extended Unemployment Insurance Compensation Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

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Additional Resources

Amendment to the Military Construction and Veterans Affairs and Related Agencies Appropriations Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Beyond this Bill

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Economic Stimulus Act of 2008

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The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Unemployment Insurance Modernization Act of 2007

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The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Beyond this Bill

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Back to Work Investment Act of 2004

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Beyond this Bill

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