Cutting Unemployment Insurance also cuts jobs
by digby
One would think that this would make an excellent argument for the market worshipers who are unmoved by human misery:
Federally funded extended unemployment insurance (UI) benefits are set to expire at the end of this year. These benefits serve two very useful public purposes. Most obviously, they provide a lifeline to the long-term unemployed and their families during the deepest and longest economic downturn since the 1930s.1 Less understood but equally crucial, the UI benefit extensions boost spending in the economy and thereby create jobs. We find that continuing the extensions through 2014 would generate spending that would support 310,000 jobs. If this program is discontinued, the economy will lose these jobs.
(Of course if they actually enjoy human misery, as many seem to, this probably won’t change their minds. 310,000 fewer jobs is good news for them — makes the workers even more hungry.)
From the tone on the Sunday shows this week I do get the feeling that there will be a move to extend these benefits. It will have to be “paid for” by screwing over someone else (the only way anything can ever get done in Washington these days) but it’s certainly on the table.