House Republicans, for the most part, told American’s unemployed they were out of luck when they failed on Thursday to extend benefits for the long-term unemployed for three more months.
The extended unemployment insurance program, which will expire on November 30, failed in a 258 to 154 vote, largely with Democratic support. Twenty-one Republicans supported the bill, while 11 Democrats voted against.
It is not clear whether the bill could pass in the lame duck session of Congress and its failure would mean about 800,000 would lose their benefits by November 30 and two million by end December 2010. Further, it is estimated that by March 2011, that that number would rise to 5 million Americans.
Many political watchers suggest that it will be very difficult to get the bill through the Senate with the Republicans averse to extending benefits for America’s unemployed, without commensurate cuts in the budget and also in time to meet the November 30 deadline. It would also be the first time that Congress has failed to pass emergency funding for the long-term unemployed during a period of high joblessness, as it has always done when the rate is over 7.2 percent.
The Republicans’ willingness to so easily drop America’s unemployed in the grease comes at a time when there are persistent calls to extend the Bush tax cuts on the wealthy, at a cost of more than $700 billion, without identifying how to pay for them. Moreover, it is well documented that extending unemployment benefits gets money to persons who will in turn spend it on rents, food and other items which have a stimulative effect on the economy, while tax cuts for the wealthy are seldom invested.
Economists project that, if the bill to extend the long-term unemployed insurance program does indeed fail, this could cut some 0.5 percent off GDP growth and further reduce consumer spending.
As the old adage goes, “You get what you pay for”.
Thank you, Republicans!
