- No mas: Principal bans Spanish language in intercom announcement
- Hacking software could put ‘zombie drone army’ in user’s hands
- Support for stricter gun laws drops: poll
- 10 whales dead, 41 others stranded in Everglades
- John Boehner faces bipartisan pressure to allow gay-rights vote
- Martin Bashir resigns from MSNBC over ‘ill-judged’ comments about Sarah Palin
- Rep. Duncan Hunter: While Obama prays for Iranian change, U.S. should ready its nukes
- Best company ever? Veteran Beer Co. exists to employ vets, provide quality beer
- Iran official: Sanctions ‘utterly failed’ to stop nuclear program
- ‘Black Santa’ display at IU sparks student outrage
Jobless wait for benefits stretch
Senate expected to assist by extending weekly checks
For jobless Americans struggling to pay their bills and keep their homes, the restoration of unemployment benefits could keep their crisis from getting worse.
The same might be said of the broader economy.
The Senate was expected to vote Wednesday to keep providing unemployment benefits for up to 99 weeks to more than 5 million long-term unemployed. The injection of an estimated $33 billion into a $14.6 trillion economy over the next five months won't be enough to energize the recovery. But economists say it could at least help sustain it.
The vote comes as evidence mounts that growth is slowing. Consumers, facing lower home values and high unemployment, are saving more and spending cautiously. The housing market is slumping again after a tax credit expired in April. And the impact of last year's $787 billion stimulus package has begun to fade.
By extending the unemployment aid, Congress will remove one potential drag on the economy, analysts say.
"It reduces the likelihood of a double-dip recession," said Gus Faucher, an economist at Moody's Analytics.
During the recession, Congress provided up to 73 extra weeks of unemployment aid, paid for by the federal government. They came on top of the 26 weeks customarily provided by the states.
But the extra benefits expired in early June. They had been routinely extended during the worst parts of the recession. But Congress reached an impasse last month. Republicans demanded that the extension be paid for with leftover stimulus money. Democrats countered that unemployment benefits are normally considered an emergency need and paid for by adding to the deficit.
About 2.5 million people ran out of jobless aid during the political battle. They will now have the aid restored retroactively. That could create chaos if state unemployment offices are flooded with people seeking to reapply.
An additional 3 million people were still receiving aid under the extended benefits program. They will be able to keep doing so.
The legislation Congress is expected to approve will inject $33 billion into the economy by renewing the extra benefits through the end of November. That money will likely be spent quickly and generate extra economic activity, economists say. Jobless aid is widely seen as providing more "bang for the buck" than many other stimulus programs.
"It recycles very quickly into the economy," said David Wyss, chief economist at Standard & Poor's. "If that's your only source of money, you're going to spend it."
Moody's Analytics estimates that every dollar of unemployment aid generates $1.61 in economic activity. Still, that translates into a boost of only $54 billion less than one-half of 1 percent of the overall economy.
"It's not going to make or break" the recovery, Mr. Faucher said.
Weekly unemployment checks average about $309, though they vary widely by state. Benefit levels also depend on how much a recipient earned while working. The checks are financed through a tax on employers.
Many of those out of work don't receive unemployment benefits. Only those who have lost jobs through no fault of their own are eligible. Applicants must also have earned certain minimum pay, set by the states.
Partly because of the extensions, about two-thirds of the nearly 15 million unemployed are receiving unemployment aid. That's a greater proportion than in previous downturns. The Obama administration's stimulus package encouraged many states to expand eligibility to part-time workers and other groups.
Patent-reform proposal takes a baby step in the right direction
- Angry NTSB ousts railroad union from N.Y. train crash site
- Xbox One, Playstation 4 games penalize users for cursing in their own homes
- Hola: Boehner prepares to push amnesty bill through House
- Apple wins facial recognition patent for iPhone 6
- Kill team: Obama war chiefs widen drone death zones
- HURT: Postal Service misses address by a whole continent
- Puerto Rico caravan honoring Paul Walker ends in 6 drunken-driving arrests, 72 speeding tickets
- Wingate University on lockdown after 2 shot dead
- Inside China: Nuclear submarines capable of widespread attack on U.S.
- U.S. drops 2,000 mice on Guam by parachute to kill snakes
Independent voices from the The Washington Times Communities
Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body. It calls attention to an unhealthy state of things.
Wall Street news for retail investors who want to know what's going on.
Does it take over 25 years in public service to really know what goes on in Washington?
Despite cynicism about the law, it can provide you justice, protection, and ensure your rights.