After months of contentious debate between President Barack Obama and Republican Legislators over extending unemployment benefits to the nearly 2.5 million unemployed workers who have recently exhausted their benefits, Senators voted 60-40 to approve the Bill, ending the staunchly partisan Republican filibuster which has previously resisted attempts to approve continued funding for those desperately in need of financial relief. The main reason for the opposition is that more federal borrowing will be used to pay for the benefits instead of looking to trim or eliminate redundant and ineffectual programs from the $3.7 trillion federal budget. Still, this will not help those 1.5 million Americans who have exhausted their UI after receiving payments for 99 weeks, and who do not have any other safety net. Not only that, but these checks printed by the US Treasury Department will only add to the burgeoning Federal Deficit; which is estimated to be $47, 000 for each of the over 300, 000, 000 Americans in the general population.
The thing is, receiving the government-issued checks will not necessarily stimulate the economy mainly because the money is not going towards buying big-ticket items as one would do with discretionary income from, say, an income tax rebate check. The recipients will use the money for living expenses and their basic necessities, not for frivolous spending sprees which generally drive the high-end retail and automotive markets. Displaced workers aren’t looking for a handout but a helping hand in the form of a job. Like most things, complex problems usually originate from a simpler precursor, and in this case it is one of basic economics, SUPPLY vs. DEMAND. It is counter-intuitive to extend for long periods of time giving money to a claimant who is jobless in the hope that he/she will eventually find a job among a shrinking or contracting economy. It seems more sensible and rational to approach the matter from another direction, and that is, allocating resources to promote OJT apprenticeships and give tax breaks and stimulus money to major in-demand industries who will by contractual agreement, hire and train the most disaffected workers from within any local city, county, municipality, and State level throughout the nation.
The solution is daunting, but not impossible and it will take a firm resolve, bi-partisan Congressional support as well as time; but sadly, a lot of hot air coming from both political parties and their pundits are not helpful but rather obstructionist, distracting, and counter-productive. Also, instead of President Obama focusing so much on those futuristic “GREEN JOBS,” most, if not all unemployed workers can’t wait that long for the technology to materialize and would gladly take a low-tech production, construction, or manufacturing job wearing a hard hat and steel-toed boots.
Robert Randle
776 Commerce St. #B-11
Tacoma, WA 98402
July 20, 2010
pbks@hotmail.com
