On a day that brought more bad news about the number of Americans searching
for work, President Barack Obama signed a bill Friday, November 6, that would
extend unemployment benefits for up to 20 weeks.
The measure, which was approved unanimously in the Senate on November 4 and
by a 403-12 in the House on November 5, would provide 14 additional weeks of
unemployment checks to all jobless workers and six more weeks on top of that to
people who live in states where the unemployment rate is greater than 8.5
percent.
The House passed a narrower version of the bill last month. It was held up in
the Senate as the unemployment benefits were expanded and other provisions were
added, such as business tax cuts and a renewal of a tax credit for homebuyers.
The additional unemployment benefits are financed by extending a surtax on
employers through 2011.
The bill marks the third time that Congress has increased unemployment
benefits since the recession started in December 2007. Previous legislation
added up to 53 weeks of benefits to the normal 26 weeks.
But as the recession has endured, the safety net has frayed. The National
Employment Law Project in Washington estimates that 600,000 workers exhausted
their unemployment benefits in September and October and that 1.3 million will
run out of support by the end of the year.
The Economic Policy Institute says that more than one-third of the 15.7
million jobless Americans have been out of work for more than six months.
Obama enacted the legislation on a day when the government reported that the
unemployment rate had reached 10.2 percent, its highest level in 26 years. He
framed the measure as a way to boost the economy by increasing consumer
spending.
“Although the extension will help over 1 million Americans, it won’t just put
money into the people’s pockets who are receiving the benefits,” Obama said in a
statement in the White House Rose Garden. “Economists tell us that when these
benefits are spent on food or clothing or rent, it actually strengthens our
economy and creates new jobs.”
Lawmakers said the bill would help ease the pain and anxiety that the economy
is inflicting on many of their constituents.
“We know that when an economy recovers, the unemployment rate is one of the
last numbers to rebound,” Senate Majority Leader Harry Reid, D-Nevada, said in a
November 4 statement. “So even as our economy begins to turn around, jobs are
turning around slower, and it is our responsibility to ensure the out-of-work
are not left out in the cold.”
Reid portrayed Republicans as having needlessly delayed the legislation
before voting for it as a bloc this week. Senate Democrats and Republicans
slowed down the original House bill as they enhanced the unemployment benefits
and added the tax amendments.
—Mark Schoeff Jr.
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