CEA to GOP: Blocking Unemployment Extensions Could Cost 600,000 jobs
The CEA report on unemployment today (PDF) puts obstinate Republicans on notice: Blocking extensions could cost as much as 600,000 jobs. It also points out the impact on children of the unemployed: Importantly, approximately 42 percent of all EUC and EB recipients have, or live with, children. As of October 2010, 10.5 million children had benefited from EUC or EB through a household member. Further, 3 million of these children were in households where the UI recipient was the sole wage-earner. In total, about 40 million people had benefited from EUC or EB through at least one household member. With regard to job loss, the report reiterates what we already know: If people have no money, they can’t spend, buy, or pay their mortgage. UI can mitigate this cycle by helping unemployed workers avoid precipitous drops in spending. Economic research has found that without UI, a typical family whose head of household becomes unemployed would spend 22 percent less on food – as compared to the 7 percent drop that is actually observed because of the UI system. 7 In addition, unemployment is a leading cause of mortgage defaults, and the income provided by UI helps avert foreclosures. All of this goes without saying. I’m sure we wouldn’t have trouble finding a Republican who would agree with this on the short term. They know the stakes, which is why they’re serving their donor-masters so faithfully.
CEA to GOP: Blocking Unemployment Extensions Could Cost 600,000 jobs
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on December 3, 2010. Filed under