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Editorial: Extend more help to the out-of-work

Congress should move to provide additional benefits.

Last update: November 1, 2009 - 7:23 PM

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MAKING THE CASE

"Nearly 2 million Americans, including more than 13,000 Minnesotans, stand to lose their benefits. We've been struck by how many people are calling ... people who have someone in their family or they themselves can't find a job, their unemployment is coming to an end and they're worried that they will lose their house.''

U.S. Sen. Amy Kloubuchar

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As the worst recession since the Great Depression continues to take its toll, some 15 million unemployed Americans are competing for 3 million available jobs. The jobless are running out of unemployment insurance benefits at a rate of 50,000 a week; nearly 2 million will have no unemployment income by the end of the year -- unless the federal government moves to extend those benefits.

Congress should act quickly to provide additional payments to the unemployed.

Last month, the House passed a plan that would add 14 weeks of benefits -- but only in states with unemployment rates of 8.5 percent or higher. That unfairly excludes Minnesotans for living in a state with only 7.3 percent of its citizens out of work.

The preferable proposal, introduced by Senate Majority Leader Harry Reid, D-Nev., and other Democrats, would include struggling Minnesotans. Also supported by Minnesota Sens. Amy Klobuchar and Al Franken, the plan boosts unemployment payments by 14 weeks in all states and adds another six weeks for states with higher jobless rates.

During the past 18 months, Congress has extended the payments three times -- most recently in February. According to the Center on Budget and Policy Priorities, that last extension alone kept 800,000 people out of poverty.

Clearly, with national unemployment nearing 10 percent, that type of help is still needed. What's more, channeling survival funds to the out-of-work puts dollars directly into the still anemic economy.

To finance unemployment insurance, typically employers pay into a state insurance fund and laid-off workers draw benefits for up to 26 weeks.

But during recessions, Congress has often paid for extended coverage. Last year, as the recession deepened, the federal government provided an extra 33 weeks of benefits. Stimulus funds covered an additional 20 weeks in states where unemployment surpassed 8 percent. In Minnesota, the unemployed can draw up to 79 weeks of assistance with a maximum benefit of $585 per week.

Some business groups and economists are skeptical. They argue that the money could be better spent on job creation and that extended benefits reduce incentives to seek work.

Yet other experts say that should not be a concern because jobs continue to be so scarce. When so many are seriously looking for work and the jobs don't exist, it is beneficial to the economy to help some of them make ends meet until the market improves.

Extending federal aid is generally supported in Congress, but Senate Republicans have blocked consideration in recent weeks by adding unrelated amendments to the bill. Fortunately, last week the senators broke three weeks of gridlock and voted 87-13 to bring the bill to the floor.

Despite some signs that the economy is beginning to recover, unemployment rates remain unacceptably high. To help more Americans stay afloat, Congress must maintain the momentum and get this legislation passed quickly.

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