It looks like the extension of unemployment benefits for all qualified unemployed American workers is unlikely to happen soon. The Unemployment extension (HR 4213) has loss in a test vote during the Senate Hearing; the “Jobs Bill” was defeated 45-52. Every Republican and some Democrats have voted against the said bill.
Majority of the Senators were against the “Jobs Bill” because it requires a great deal of money to sustain the program. The federal government has already exhausted its budget on other more important programs including the Obama’s home rescue plan. Any program that requires budget from the government will further diminish the Budget Reserves of the United States according to the Department of Treasury. The new “Jobs Bill” will add approximately 80 billion U.S. dollars to the current federal deficit.
Another reason why Republicans and a few number of Democrats have voted against the implementation of the “Jobs Bill” is because it is considered “non-emergency”. There are other programs and laws that needed to be sustained by the government; the extended unemployment is not one of them.
Because of the defeat of the extended benefit in the Senate, Democrats who voted for the bill will have to think of ways in order to convince their fellow Senators to pass the said bill; they need over 60 votes in order to successfully pass the HR 4213. Another option of Democrats is by going back to the proverbial drawing board in an attempt to decrease the total cost of the extension. A new version of the bill is expected to reach the Congress soon. Surely, the new version will include reducing the amount of unemployment benefits by approximately 25 dollars per week for 1 person. This idea was originally introduced by Senator Jon Tester.
If in case the Democrats cannot get the targeted 15 votes by the end of the month, the extended unemployment will surely die out and over 1 million American unemployed will have to live without benefits. This is quite alarming since the country is still in economic upheaval. More Americans has to be laid off from work and a few more are suffering from pay cuts. If they do not receive benefits from the federal government, chances are, the economy will further spiral down. More people will have to go on default with their mortgages which can result to foreclosure; loss of income will also decrease the consumer spending. Foreclosures and decreased consumer spending are major factors why the economy has not recovered yet. Unfortunately, it is a cycle and unless unemployment rate decrease, the country will have to continue suffering from the economic downturn.
About the Author
R. Trammel feels fortunate to bring financial recovery to those who are laid off, downsized, and unemployed. However, R. Trammel, a paralegal at Allmand and Lee, believes those affected by the radical change in the economy can protect their assets during these difficult times, until they are able to re-establish a stable income.
Rance witnesses the struggles and heavy burdens of unemployment through his clients’ experiences, he knows that it is about more than just financial calamity. In the blog Secrets About Unemployment , he writes on the great future that lies beyond unemployment, and the legal implications of the common proactive steps that unemployed people can take. He covers everything tax-related topics, to post-resignation depression, the effects on the family unit, and personal finances.