It’s very seldom that I find myself in agreement with the American Enterprise Institute (AEI). Thus, it was a big surprise to find that we see eye to eye regarding the importance of extending or reinstating federal unemployment benefits, which are set to expire at the end of this week (on December 28th).
Michael Strain of AEI nicely summarized why lawmakers “shouldn’t let emergency federal benefits expire.” He recently wrote:
“…the same fundamental logic that led to their being (correctly) enacted still holds today: The labor market is still in bad shape, the economy is still weak, there are three times as many unemployed workers as job openings.”
In a Wisconsin Budget Project Blog post today, I elaborated on those points – summarizing the ten key facts regarding the expiring unemployment benefits and their relevance for Wisconsin. While that blog post focuses primarily on key statistical considerations, an excellent column by Robert Mentzer in the Wausau Daily Herald puts a human face on the problem, and in doing so it effectively undercuts the arguments often made by fiscal conservatives for cutting this important lifeline for the long-term unemployed.
The abrupt termination of federal unemployment benefits next will be a devastating blow for about 1.2 million jobless workers and their families, and also a harsh blow for the American economy. Although those benefits are clearly going to be suspended for a while, the fact that liberal and conservative groups recognize the need for this program makes me somewhat optimistic that sometime in the next month or two Congress can find a way to reinstate federal benefits for the long-term unemployed and then allow the program to gradually phase out as the economy slowly improves.
Jon Peacock