Tag Archives: unemployment insurance

How Cutting Jobless Benefits Cut Joblessness

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During his December 2013 Hawaiian vacation, President Obama phoned lawmakers, asking them to extend unemployment benefits. They did not. Which is a good thing, according to a new study published by NBER. [Credit: Fox News]

Dur­ing his Decem­ber 2013 Hawai­ian vaca­tion, Pres­i­dent Oba­ma phoned law­mak­ers, ask­ing them to extend unem­ploy­ment ben­e­fits. They did not. Which is a good thing, accord­ing to a new study pub­lished by NBER. [Cred­it: Fox News]

A lit­tle more than a year ago, the Pres­i­dent was dis­tressed.  It was a few days after Christ­mas 2013, and extend­ed unem­ploy­ment ben­e­fits for 1.3 mil­lion peo­ple were about to expire.  In a typ­i­cal­ly per­func­to­ry lob­by­ing effort, he called two Sen­a­tors to urge them to move a bill to pre­serve the benefits.

To recov­er from his exer­tions, he and his fam­i­ly then “ven­tured to the white-sand beach at Bel­lows Air Force Sta­tion, which is on the wind­ward side of the island of Oahu and fea­tures turquoise water and a stun­ning view of the Moku­lua Islands,” the Wash­ing­ton Post reported.

That tran­quil scene augured the best year for U.S. employ­ment growth since 1999.   Accord­ing to the Labor Depart­ment, the econ­o­my added more than 3.1 mil­lion jobs in 2014.  The topline unem­ploy­ment rate was 5.6% in Decem­ber, down from 6.7% the pri­or Decem­ber and the low­est rate since June 2008.

And here is the sur­pris­ing major rea­son for the resur­gence in employ­ment: Con­gress spurned the President’s entreaties and let extend­ed unem­ploy­ment ben­e­fits expire. Con­tin­ue read­ing →

Student Loans: Punishing People Who Play By The Rules

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President Obama believes that requiring student loans to be repaid is punishing good behavior. [Credit: NPR]

Pres­i­dent Oba­ma believes that requir­ing stu­dent loans to be repaid is pun­ish­ing good behav­ior. [Cred­it: NPR]

“If some­body plays by the rules, they shouldn’t be pun­ished for it.” — Pres­i­dent Obama

The Pres­i­dent made this inar­guable state­ment in the course of pro­claim­ing a change in the law gov­ern­ing stu­dent loans.  Hence­forth, mil­lions of peo­ple who bor­rowed for col­lege will have their month­ly pay­ments restruc­tured and, in some cas­es, be entire­ly relieved of the oblig­a­tion to repay their debt.

In the President’s mind, bor­row­ing mon­ey is play­ing by the rules; pay­ing it back is pun­ish­ment. Con­tin­ue read­ing →

Is Congress Still Relevant?

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All 100 Senators gathered last year for this photo. They have done little since. Have they become irrelevant? [Credit: senate.gov]

All 100 Sen­a­tors gath­ered last year for this pho­to. Under Har­ry Rei­d’s lead­er­ship, they have done lit­tle since. Have they become irrel­e­vant? [Cred­it: senate.gov]

Here is all you need to know about the decline of the Unit­ed States Con­gress: a US Sen­a­tor recent­ly asked a fed­er­al judge to block the Oba­ma Admin­is­tra­tion from unlaw­ful­ly sub­si­diz­ing his own health insur­ance coverage.

The law­suit illus­trates how Con­gress has become a sub­servient branch of the fed­er­al gov­ern­ment.  Sub­ject to the whim of the Exec­u­tive Branch, one of its Mem­bers must now appeal to the Judi­cial Branch for relief.  Actu­al­ly leg­is­lat­ing seems out of the ques­tion. Con­tin­ue read­ing →

Unemployment Benefits and Harry Reid’s Pain

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Harry Reid has embraced the pain of sequestration in his proposal to extend jobless benefits. But does it address the problem? [Credit: Roll Call]

Har­ry Reid has embraced the pain of seques­tra­tion in his pro­pos­al to extend job­less ben­e­fits. But does it address the prob­lem? [Cred­it: Roll Call]

“I think it’s real­ly unfair that it would be so easy to turn the sequester around and allow us to do some­thing for the long term to take care of this issue. But no, the Repub­li­cans like the pain. They like the pain.”  — Sen­ate Major­i­ty Leader Har­ry Reid, April 24, 2013

Har­ry Reid (D‑NV) has late­ly embraced the pain of sequester. On Thurs­day, Reid advanced a pro­pos­al to off­set the cost of extend­ing “emer­gency” unem­ploy­ment ben­e­fits with auto­mat­ic cuts in med­ical spend­ing for the elder­ly and dis­abled. Con­tin­ue read­ing →

How The Budget Deal Could Threaten Obamacare

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An angry John Boehner (R-OH) lashed out at conservative groups who opposed the budget deal. The deal strengthens his hand with his caucus and in negotiations over changes to Obamacare. [Credit: Washington Post]

An angry John Boehn­er (R‑OH) lashed out at con­ser­v­a­tive groups who opposed the bud­get deal. The deal strength­ens his hand with his cau­cus and in nego­ti­a­tions over changes to Oba­macare. [Cred­it: Wash­ing­ton Post]

“Frankly, I think they’re mis­lead­ing their fol­low­ers. I think they’re push­ing our mem­bers in places where they don’t want to be. And frankly, I just think that they’ve lost all cred­i­bil­i­ty.” – House Speak­er John Boehn­er (R‑OH), com­ment­ing on oppo­si­tion by con­ser­v­a­tive groups to the bud­get deal.

Last week’s over­whelm­ing House vote to rat­i­fy a mod­est bud­get agree­ment has been var­i­ous­ly depict­ed as a defeat for the Tea Par­ty, a rare instance of bipar­ti­san­ship, and a moment of ratio­nal­i­ty in an oth­er­wise chaot­ic and dys­func­tion­al bud­get process. It is all of those things and some­thing more: a new threat to the already trou­bled imple­men­ta­tion of Oba­macare. Con­tin­ue read­ing →

Welfare or Work: A Difficult Choice

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The choice between welfare and work is not always an easy one, according to a new study by the Cato Institute. (Credit: LA Times)

The choice between wel­fare and work is not always an easy one, accord­ing to a new study by the Cato Insti­tute. (Cred­it: LA Times)

(NOTE: This post was updat­ed on Sep­tem­ber 23 to incor­po­rate the gov­ern­men­t’s new­ly-released pover­ty rate data.)

If forced to choose between a full-time job that paid $24.40 per hour and enrolling in a pack­age of gov­ern­ment ben­e­fits that paid a com­pa­ra­ble amount, which would you choose? Con­tin­ue read­ing →

Republicans Getting Deficit Reduction, But President Getting His Way

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The President and Speaker are headed for another budget confrontation. [Credit: Fox News]

The Pres­i­dent and Speak­er are head­ed for anoth­er bud­get con­fronta­tion. [Cred­it: Fox News]

Con­gress is on hol­i­day, rest­ing up for the next round of bud­get wars that will resume after Labor Day. The issues they will face when they return are famil­iar: the fed­er­al gov­ern­ment is about to lose author­i­ty to do what it does best (or, at least, most nat­u­ral­ly) – bor­row and spend. Con­tin­ue read­ing →