Georgians have received more than $2 billion in federal Unemployment Insurance (UI) benefits over the last 12 months as part of the emergency UI program. To put that economic impact in context -- $2 billion is greater than the annual payroll for Robins Air Force Base. If Congress does not extend these benefits in December, millions of dollars will immediately stop flowing to Georgians pockets, lowering their purchasing power and impacting local economies across the state.
Congress provides emergency UI benefits in recessions to assist workers during periods of prolonged unemployment after they exhaust state UI benefits. These benefits help workers and families make ends meet when the number of job-searchers greatly out-numbers available jobs. For every 1 job opening nationally there are 5 unemployed workers. The job-population mismatch is especially pronounced in Georgia -- Today, Georgia has fewer jobs than in 2000, yet 20 percent more working age adults.
How would state leaders respond if a company with $2 billion in annual payroll suddenly announced they were eliminating all payroll in 2011? This is the dire reality faced by Georgia workers if federal UI benefits expire. An estimated 90,000 Georgians will lose benefits in December unless Congress acts, according to the National Employment Law Project.
Emergency UI Benefits Typical Until Unemployment Drops to 7.2%
Federal emergency benefits have been available in recessions since the 1950s and historically remain in place until unemployment falls to 7.2 percent or lower. Almost one in ten workers is unemployed today (9.6 percent nationally and 9.9 percent in Georgia), yet these emergency benefits are set to expire. Georgia's unemployment rate will likely stay above 9 percent in 2011, according to GSU Economic Forecasting Center.
Federal UI Benefits Have Helped Workers...And the State Budget
Georgia workers receiving federal UI benefits have contributed an estimated $100 million in income tax revenue over the last 12 months. UI benefits act as wage replacements for unemployed workers as they search for a job, and Georgia treats those benefits like regular wages when it comes to taxes. As the state has struggled with falling revenues and rising need, these tax contributions have added a small boost to revenues.
While the debate about UI extensions should focus on the very real impacts to workers and families, we at the state-level should also consider the impacts on state budget and tax policy. If emergency UI benefits expire and unemployment remains at 9 percent, as expected, will state leaders have to fill an additional $100 million hole in FY 2012 on top of the $1.8 to $2 billion budget shortfall? Will the demand for state services increase as these workers lose benefits -- at the same time revenues remain low? Is the state prepared to meet those additional demands for services?
The expiration of federal UI benefits has consequences for workers, families, and local economies, as well as the state's ability to meet rising needs for services.
Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
Monday, November 29, 2010
Friday, November 6, 2009
Pelosi to House: Let's Destroy More Jobs
/PRNewswire/ -- With the unemployment rate now shockingly high, and perhaps moving higher, a national small business leader warned the U.S. House that advancing the Pelosi health-care bill will lead to further job loss and a deterioration of the small business sector if enacted. According to Small Business & Entrepreneurship Council (SBE Council) President & CEO Karen Kerrigan, the economic rebound that Americans are desperately looking for will not happen with job-killing tax hikes and mandates like those included in H.R. 3962. The House is scheduled to vote on the bill on November 7, 2009.
"The Pelosi health bill drains capital from the enterprises that need it most, and imposes taxes and mandates on businesses and individuals that can least afford these new cost burdens. Small firms will be forced to cut jobs, and encouraged to stay below the penalty threshold of the 'play-or-pay' scheme. That means fewer jobs created. To top it off, the legislation will not lower health coverage costs for small business owners. In fact, it will raise health costs. H.R. 3962 is an irrational piece of legislation and we expect every member of the House who claims an allegiance to small business owners to vote against it," said Kerrigan.
It was reported today that the unemployment rate has reached 10.2 percent. Small business owners continue to be gripped by uncertainty because of unstable economic conditions and the fear of policies being debated in Washington that will impose new costs and requirements on their firms.
"The key issues of concern in Tuesday's elections were jobs and the economy. Indeed this 'local issue' is a national one and all U.S. House members must pay attention to their constituents needs. Real people's jobs are on the line with this legislation, as is the survival of countless small businesses," added Kerrigan.
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"The Pelosi health bill drains capital from the enterprises that need it most, and imposes taxes and mandates on businesses and individuals that can least afford these new cost burdens. Small firms will be forced to cut jobs, and encouraged to stay below the penalty threshold of the 'play-or-pay' scheme. That means fewer jobs created. To top it off, the legislation will not lower health coverage costs for small business owners. In fact, it will raise health costs. H.R. 3962 is an irrational piece of legislation and we expect every member of the House who claims an allegiance to small business owners to vote against it," said Kerrigan.
It was reported today that the unemployment rate has reached 10.2 percent. Small business owners continue to be gripped by uncertainty because of unstable economic conditions and the fear of policies being debated in Washington that will impose new costs and requirements on their firms.
"The key issues of concern in Tuesday's elections were jobs and the economy. Indeed this 'local issue' is a national one and all U.S. House members must pay attention to their constituents needs. Real people's jobs are on the line with this legislation, as is the survival of countless small businesses," added Kerrigan.
-----
www.politicalpotluck.com
Political News You Can Use
Wednesday, July 8, 2009
Democrats in Disarray on Trillion-Dollar "Stimulus" That Isn't Working
Millions of American jobs have been lost in 2009, even though the Administration promised unemployment would not rise past eight percent if the Democrats’ trillion-dollar “stimulus” spending bill became law. But unemployment is now a staggering 9.5 percent, and middle-class families and small businesses are asking: Where are the jobs?
Democrats are all over the map about why their vaunted “stimulus” is not creating the jobs the Administration promised. Vice President Joe Biden said they “misread the economy,” but President Obama said that wasn’t true. President Obama said “there’s nothing he would have done differently” on the “stimulus,” but the Vice President has already admitted that “Some people are being scammed already” by the legislation.
And what about the prospect of a second “stimulus”? Democrats are deeply divided on that question too, as Bloomberg News reports:
“Democrats who control the levers of power in Washington are divided over whether to push for more deficit spending to end the recession and stem job losses, complicating the possibility of a second stimulus bill.”
A story in this morning’s Politico further highlights the deepening Democratic divide on their trillion-dollar “stimulus”:
“President Barack Obama says there’s ‘nothing’ he ‘would have done differently’ about his economic stimulus plan, but one of his top outside economic advisers says the plan was ‘a bit too small.’”
“Democratic Sen. Claire McCaskill of Missouri says the idea of a second stimulus is a ‘non-starter,’ but Democratic Sen. Sheldon Whitehouse of Rhode Island says it ‘should be on the table.’”
“Senate Majority Leader Harry Reid (D-Nev.) says there’s ‘no showing that a second stimulus is needed,’ but House Majority Leader Steny Hoyer (D-Md.) says Congress needs to be ‘open to whether we need additional action.’”
“Democrats are all over the map on the stimulus and the possibility of a sequel, and it’s not hard to see why: When it comes to a second stimulus, they may be damned if they do and damned if they don’t.”
“‘Right now, every headline across the board is the stimulus isn’t enough, states are in bankruptcy, states aren’t paying their bills,’ says Wendy Schiller, a Brown University political scientist. ‘This is really deadly for the Democratic Party, because what it suggests is the Democratic Party cannot run the country.’”
The fact is government spending doesn’t create economic growth; small businesses create economic growth. And if the Democrats in charge of Washington want to take another shot at “stimulating” the economy, they should start by scrapping the job-killing health care and energy bills that are being rammed through Congress this summer, and work with House Republicans on better solutions that encourage investment, savings, and job creation. Instead, it appears that Democrats will continue to stubbornly push legislation to raise energy costs on every American, pave the way for a government takeover of health care, ship millions of jobs overseas, and drive our children and grandchildren into even deeper debt. All the while, the American people continue to ask, “Where are the jobs?” They deserve answers – and better solutions.
-----
www.politicalpotluck.com
Political News You Can Use
Democrats are all over the map about why their vaunted “stimulus” is not creating the jobs the Administration promised. Vice President Joe Biden said they “misread the economy,” but President Obama said that wasn’t true. President Obama said “there’s nothing he would have done differently” on the “stimulus,” but the Vice President has already admitted that “Some people are being scammed already” by the legislation.
And what about the prospect of a second “stimulus”? Democrats are deeply divided on that question too, as Bloomberg News reports:
“Democrats who control the levers of power in Washington are divided over whether to push for more deficit spending to end the recession and stem job losses, complicating the possibility of a second stimulus bill.”
A story in this morning’s Politico further highlights the deepening Democratic divide on their trillion-dollar “stimulus”:
“President Barack Obama says there’s ‘nothing’ he ‘would have done differently’ about his economic stimulus plan, but one of his top outside economic advisers says the plan was ‘a bit too small.’”
“Democratic Sen. Claire McCaskill of Missouri says the idea of a second stimulus is a ‘non-starter,’ but Democratic Sen. Sheldon Whitehouse of Rhode Island says it ‘should be on the table.’”
“Senate Majority Leader Harry Reid (D-Nev.) says there’s ‘no showing that a second stimulus is needed,’ but House Majority Leader Steny Hoyer (D-Md.) says Congress needs to be ‘open to whether we need additional action.’”
“Democrats are all over the map on the stimulus and the possibility of a sequel, and it’s not hard to see why: When it comes to a second stimulus, they may be damned if they do and damned if they don’t.”
“‘Right now, every headline across the board is the stimulus isn’t enough, states are in bankruptcy, states aren’t paying their bills,’ says Wendy Schiller, a Brown University political scientist. ‘This is really deadly for the Democratic Party, because what it suggests is the Democratic Party cannot run the country.’”
The fact is government spending doesn’t create economic growth; small businesses create economic growth. And if the Democrats in charge of Washington want to take another shot at “stimulating” the economy, they should start by scrapping the job-killing health care and energy bills that are being rammed through Congress this summer, and work with House Republicans on better solutions that encourage investment, savings, and job creation. Instead, it appears that Democrats will continue to stubbornly push legislation to raise energy costs on every American, pave the way for a government takeover of health care, ship millions of jobs overseas, and drive our children and grandchildren into even deeper debt. All the while, the American people continue to ask, “Where are the jobs?” They deserve answers – and better solutions.
-----
www.politicalpotluck.com
Political News You Can Use
Wednesday, May 20, 2009
Democrats Vote for $5 Gas, 15 Percent Unemployment, and Shipping Jobs to China & India - All to Protect Their National Energy Tax
Just how committed are Democrats to establishing a national energy tax on anyone who drives a car, buys anything made in America, or has the audacity to flip on a light switch? So committed that they are willing to let families and small businesses deal with $5 gas prices, 15 percent unemployment, and skyrocketing electricity costs just to ensure that the national energy tax becomes the law of the land.
Republicans believe there's a better path to clean energy. Yesterday, during the House Energy & Commerce Committee’s consideration of the legislation, Republicans offered a series of amendments to protect Americans from paying the national energy tax – which would cost families up to $3,100 per year – if gasoline and electricity costs soared or if unemployment reached historic levels. But one by one, Democrats rejected these common sense amendments, barreling ahead with their plans to saddle Americans with a massive new tax when they can afford it the least. Here’s a quick review of some of the amendments Democrats voted against yesterday – reflecting just how committed they are to a national energy tax:
Democrats Vote for $5 Per Gallon Gasoline. Democrats rejected a GOP amendment designed to protect middle-class families by shelving the national energy tax if gasoline prices hit $5 per gallon.
Democrats Vote for 15 Percent Unemployment. Democrats rejected a GOP amendment that made clear that if the U.S. unemployment rate should exceed 15 percent, then the national energy tax would cease to be effective.
Democrats Vote for Skyrocketing Electricity Costs. Democrats rejected a GOP amendment that would have protected residential customers from higher electric utility rates. The amendment would shelve the national energy tax if electricity rates increase by more than 10 percent over 2009 rates.
Democrats Vote for Shipping American Jobs to China and India. Democrats rejected a GOP amendment designed to provide a level playing field for American industries. It simply made clear that China and India must adopt the same emissions standards that the United States will be forced to comply with under the Democrats’ national energy tax, and if they don’t then it will not go into effect in the United States.
Democrats Vote For Keeping Consumers in the Dark About Energy Price Spikes. Democrats rejected a GOP amendment to require that any price increase for consumers as a result of the national energy tax be fully disclosed on each utility bill, fuel pump, manufactured product label, or food label.
Republicans know that we can clean up our environment, create more jobs, and bring down energy prices at the same time – without raising taxes. Cornerstones of the House Republicans’ strategy are:
- Increasing environmentally-safe energy production on remote lands and far off our shores;
- Promoting the use of alternative fuels that will reduce carbon emissions, such as nuclear, clean-coal, and renewable energy technologies; and
- Encouraging conservation to preserve and protect our natural resources.
While Democrats cling to their irresponsible plan for a national energy tax on families and small businesses – even if gas prices, electricity costs, and unemployment soar – Republicans will continue promoting their “all of the above” strategy. Republican Conference Chairman Mike Pence (R-IN) will host a series of forums next week in California, Pennsylvania, and Indiana to highlight the plan – and shine a spotlight on the devastating consequences of the Democrats’ national energy tax.
-----
www.politicalpotluck.com
Political News You Can Use
Republicans believe there's a better path to clean energy. Yesterday, during the House Energy & Commerce Committee’s consideration of the legislation, Republicans offered a series of amendments to protect Americans from paying the national energy tax – which would cost families up to $3,100 per year – if gasoline and electricity costs soared or if unemployment reached historic levels. But one by one, Democrats rejected these common sense amendments, barreling ahead with their plans to saddle Americans with a massive new tax when they can afford it the least. Here’s a quick review of some of the amendments Democrats voted against yesterday – reflecting just how committed they are to a national energy tax:
Democrats Vote for $5 Per Gallon Gasoline. Democrats rejected a GOP amendment designed to protect middle-class families by shelving the national energy tax if gasoline prices hit $5 per gallon.
Democrats Vote for 15 Percent Unemployment. Democrats rejected a GOP amendment that made clear that if the U.S. unemployment rate should exceed 15 percent, then the national energy tax would cease to be effective.
Democrats Vote for Skyrocketing Electricity Costs. Democrats rejected a GOP amendment that would have protected residential customers from higher electric utility rates. The amendment would shelve the national energy tax if electricity rates increase by more than 10 percent over 2009 rates.
Democrats Vote for Shipping American Jobs to China and India. Democrats rejected a GOP amendment designed to provide a level playing field for American industries. It simply made clear that China and India must adopt the same emissions standards that the United States will be forced to comply with under the Democrats’ national energy tax, and if they don’t then it will not go into effect in the United States.
Democrats Vote For Keeping Consumers in the Dark About Energy Price Spikes. Democrats rejected a GOP amendment to require that any price increase for consumers as a result of the national energy tax be fully disclosed on each utility bill, fuel pump, manufactured product label, or food label.
Republicans know that we can clean up our environment, create more jobs, and bring down energy prices at the same time – without raising taxes. Cornerstones of the House Republicans’ strategy are:
- Increasing environmentally-safe energy production on remote lands and far off our shores;
- Promoting the use of alternative fuels that will reduce carbon emissions, such as nuclear, clean-coal, and renewable energy technologies; and
- Encouraging conservation to preserve and protect our natural resources.
While Democrats cling to their irresponsible plan for a national energy tax on families and small businesses – even if gas prices, electricity costs, and unemployment soar – Republicans will continue promoting their “all of the above” strategy. Republican Conference Chairman Mike Pence (R-IN) will host a series of forums next week in California, Pennsylvania, and Indiana to highlight the plan – and shine a spotlight on the devastating consequences of the Democrats’ national energy tax.
-----
www.politicalpotluck.com
Political News You Can Use
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