Extended Unemployment Benefits, A Band-Aid for Mr. Obama’s Jobs Failure

“Republicans should join Democrats to pass one of these two measures to help those struggling to make ends meet,” said Sen. Harry Reid (D-NV) 13%Friday, in reference to two upcoming cloture votes on a bill extending emergency unemployment benefits.

Ostensibly all members of Congress want to help Americans “make ends meet” and more than that, to prosper.  Sadly, liberal policies have failed to facilitate job creation.  Look no further for proof of this than last month’s abysmal jobs report showing more and more Americans are giving up the job search altogether.  In December, a mere 74,000 jobs were added to the economy.

Today, the Senate is still grappling over extending emergency unemployment benefits.  But conservatives and Republicans are more concerned with real job creation, which Speaker John Boehner articulated on Friday:

There are more families living in poverty today than there were before the president took office, and instead of making it easier to find a good-paying job, Washington has been more focused on making it less difficult to live without one.

The liberals in the Senate and President Obama have refused to cooperate with the House in their effort to enact pro-growth policies.  Now, they’re focused on the proverbial band-aid that is an emergency unemployment benefits extension.  Their mentality is echoed by some in academia.

“A Band-Aid doesn’t heal a serious wound, but that isn’t much of a reason not to use one,” said Jesse Rothstein, an economist at the University of California who has studied the long-term unemployed and found that extended benefits help both the recipients and the economy by fueling consumer spending.

Historical trends do not support the claim that consumer spending fuels the economy, as the Heritage Foundation demonstrates in this graphic:

The Heritage Foundation, Created 12/31/13

The Heritage Foundation, Created 12/31/13

Moreover, numerous studies have been done that demonstrate the adverse effect of extended emergency unemployment benefits on the unemployed — namely, prolonged unemployment.   As we noted previously:

The more the unemployed receive in government-benefits, the more they themselves will pay for them, either in lengthened unemployment or a spike in taxes, or both.  A benefits extension is bad for the unemployed.  Economists say so, history says so, logic says so.

The federal emergency unemployment benefits – benefits that extend beyond the traditional 26-week program that is primarily a state function – have been in effect since 2008.  Clearly something isn’t working.



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21 thoughts on “Extended Unemployment Benefits, A Band-Aid for Mr. Obama’s Jobs Failure

  1. Only an idiot can believe that one actually gets something for nothing with no consequences. To paraphrase the great Margaret Thatcher “the problem with spending other people’s money is that you eventually run out of money”. It happened in England, it’s happening here. Unemployment is supposed to be a crutch until you can get back on your feet, not a wheelchair to ease the transition into poverty.

    • True, but we need to reform our anti-employment tax system. We should not tax workers (FICA, FUI, SUI, and the income taxes) nor should be tax the employers. Our tax system should promote employment not unemployment. We need to pass the FAIR TAX that would tax foreign and domestic goods equally, instead of taxing domestic goods but not foreign goods. If we did not have a foolish tax system we would not have to worry about extending unemployment benifits.

  2. Any time Legislators become involved in the employment issue “LOOK OUT”. Harry RED-reid is the biggest do nothing but more taxes Senate leader ever. They do not get the message “LESS GOVERNMENT means BETTER GOVERNMENT”

  3. Nice site you have here. ¨¨Unemployed asses¨¨Commie Bastards¨¨Idiots¨´ Are Republicans or Conservatives as you would call them all like this? No wonder the Republicans are self destructing. Intelligence is not in the mix.

    • It’s understandable, codeforezap, that you are angry. No one likes to be called an idiot or other uncomplimentary words. But why not direct your anger productively and present a cogent argument in rebuttal of the article? That way we could all learn.

  4. As an employer who pays higher than the minimum wage, during better times I did offer employment to a few unemployed friends, who told me they could collect 80% of what I was offering just by sitting on the couch, so why should they bother to show up at my business and work? It was an epiphany for my liberal heart.

  5. The Democrats are like those parents that spoil the child and lack parenting skills to make something great of that child.

  6. Where has the ethics gone in this nation? I personally never been on unemployment . That is not to say I have never been jobless, because I have been on several occasions in my life. But I have always believed minimum wage is always better than no wage. The longest time I was out of work was 28 weeks. In the late 70’s, the mining industry had bottomed out for coal deep mine, due to the fact you could mine 3 times the Coal with 1/2 the cost by strip mining. In the mid west strip mining was booming, and people were loosing jobs in the east were deep mining was prominent. I had just moved to West Virginia looking for a chance to get a job in the mines because I had been promised a chance to work for a coal mine there, but that did not happen. So I went to try to get unemployment, but I had not lived in W.VA. long enough to get it. Well with a wife and two kids I had to earn some money so we could live. I still think about it today! My Brother-in-law and I would pick up pop bottles and cans along the side of the road, dig may apple root, and ginseng root, we even dug a few out houses for $3.00 an square foot. we were able to eat and pay rent and basic bills without unemployment! I may not have a lot by todays standards but I have worked for what I have. I earned my degree by working and going to school at the same time. Yes it was hard but life is not fair and this is a lesson we need to teach our kids today At some times the hand out must stop and we as a nation need to go back to the ethics that built this Nation!

  7. One of the best analogies to the “establishment” and liberals, esp. to Harry Reid, is that they don’t look back at the past 5 years when these unemployment benefits have kept being extended, and their frugal reasoning was that it would “stimulate job growth”. Well, Harry and even Mr. Obama! If extending unemployment benefits for the last 5 years of your administration were supposed to “stimulate job growth”, then WHY are we NOT having FULL EMPLOYMENT by now? We’ve had to pay for your “stimulating” 5 years of unemployment benefits with our hard earned taxes, cut programs (which is going to have to happen again in order to extend these benefits another 48 weeks and we’ve all ready done that be cutting the military and I HAPPEN TO BE ONE OF YOUR CUTS, MR. PRESIDENT SO SHUT YOUR MOUTH ON THAT NODE!), so what else is next, Mr. Obamalamadingdong? Oh, let’s cut the social security income for the elderly while we’re at it! Yeah, that’ll get them riled up enough to put a blow-hard up his arsehole….or maybe let’s cut some more military off the grid! Yeah! We don’t need our military veterans anymore and why would we support the vets? This is the thinking of the left liberals and Obamalamadingdong’s way of how to get his political points up…..give all the benefits to the unemployed to get the votes, give some more benefits to the illegal aliens (and I could care a rats pitoony about political correctness here!) just to get the votes, and then when he has enough votes, he’ll forget ALL about those voters who drank his kool-aid and be done with them….you think this President CARES about the unemployed?? So, just go ahead and scream that you need more unemployment benefits so that you don’t have to go look for work and subject the rest of us (including us veterans whose only income is our retirement pay for those who put in over 20 years, like me, have done) and keep sitting around collecting your benefits. I know what its like being unemployed, too. Been there, done that. But I found something that suited me by looking online, connecting to that employer, and found work before my benefits ran out. I’m now enjoying my military retirement for which I worked hard to get, 25 years worth, and I’m not about to let another unemployment extension take another bite out of my income for that. Unemployment benefits do NOT stimulate job growth! Allowing FREE MARKETS into the job force DOES create jobs and this President doesn’t seem to understand that nor does he want it to happen. All he wants is to keep shredding our Constitution, break our nation into 2 factions fighting each other, and undermine the VALUES that we Americans came to live by that made this America the most prosperous nation in the world because of FREE MARKETS and CAPITALISM! He hates that word and you know it!

  8. I hope Americas finally see who is to blame foe all of out problems. Obama has no business savy oor does not want to understand what makes America work, With all the other problems he has caused it is time to put an end to his reign. Its time to get serious about Impeachment before he causes more problems. Timr is of the ESSENCE!!

  9. Ever notice since L.B.J. that every time the democrats hold the office it always follows with a moral and cultural decline? Are we at toilet yet?

    • I’m sure glad someone besides me has noticed this. The two party system is set up that way. The dems push their immoral nonsense, and by the end of a dew term we the people are screaming for morality, then the reps come in and put on the right wing morally and politically correct act until we the people are tired of moral hypocrisy, then the cycle repeats over and over and over until the pope will be the head of the world again, and when he is head the people surely parish BY THE MILLIONS! PROTESTANT AMERICA NEEDS TO DO SOMETHING DIFFERENT instead of showing our insanity by doing the same thing over and over for generations and expecting different results!


  11. Anyone with at least the I.Q. of a doorknob, should be able to figure out that continually paying people to not work does not make good economic sense. Democrats have it figured out, but they don’t care. They don’t care about Blacks, Whites, Hispanics your spouse,your children, or America. The only thing that counts to Democrats is that they want their votes to maintain power. They are well aware that Democrat voters are cult like and are blind followers. Jim Jones proved that people can be manipulated to do just about anything, including giving poison to their children and to themselves.
    Facts have never been especially important to the Democrat party. They control the media so they really are never concerned that their lies and harmful policies will be exposed on a nationwide basis. These are facts: In less than an hour in my doctors two waiting rooms, I was exposed to three conversations between one married woman and two women who have boyfriends. In all three cases, they stated that their men were unemployed and had no intention to find another job. At $350.00 a week, they said that they were doing just fine and enjoying their free time. In a newspaper that I was reading, there was a case of a 67 year old man who had been getting $340.00 a week and was not looking for a job because he did not have the money to put in his car to look for a job. Obviously, he had no plans to officially “retire”. Within an hour, I had turned up four people who were living on unemployment payments and had no intention of ever getting a job. Try to imagine how many of those people there are in the entire country and please explain how the real taxpayers of this nation can sustain paying these people and thousands more who will undoubtedly take advantage of this policy. Democrats don’t care. Vote Republican.

  12. At every turn, this Administration has killed jobs, and now again, he wants to reward the chronic unemployed, and further chaining them to economic slavery (for votes).

  13. While many falsely blame Republicans for the government shutdown, the true blame is all on the man of very little character, Harry Reid who refused to alleviate any of the crisis atmosphere of the past five years by refusing to bring spending bills to the floor of the Senate. Everyone know that, but spin is the currency of the democratic party! Otherwise they are morally broke! Lets not forget the morally broke RINOs, either!

  14. Well I can tell you for a fact that eating out of dumpsters in no picnic either. Those on unemployment did not cause the economic crisis. They are a victims of it. Lying with Statistics is a good way to keep us confused. I have read, depending on which media you read, that the unemployment rate is between 1.3 and 14.3 million. US Department of Labor states, 2.4 million currently losing benefits. Regardless of what the media says, this economy is not improving. It is not improving at a slow pace. So my fellow Americans let us cut those benefits off and give that money to research to find out why monkeys pick their butts. Or give trillions to another war, or give billions for the military to build more useless war toys; give billions to foreign aid, BUTT, help out Americans, ARE YOU NUTS?1?1/

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