Chicago Valve Company Capital Budgeting – Unemployment Extension Fight Is Just Beginning
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Unemployment Extension Fight is just beginning
Congress has been voting whether or not to pass the unemployment extension for the last two weeks, which has left millions without any source of income. Finally, on Tuesday July 20, 2010 Congress voted to continue eligibility for extended unemployment benefits. This extension will run until the end of 2010. To reach the average, unemployment benefits would need to be extended through September 2011, which would require another act of congress. (Izzo, 2010, page1) . In previous downturns in the economy, extensions lasted until the rate has dropped to 7.5% or lower.
Economists have predicted that the unemployment rate will still be up by 8.6% in December of 2011. “99ers” are the only tier being affected during this extension process. A “Tier5”, which is a group of unemployed workers that have been out of work for 99 weeks and are cut off unemployment benefits. Most of the long-term unemployed are likely to find jobs before they reach the 99-week threshold, but the number of people bumping up against the ceiling could be set to rise substantially. (Izzo, 2010, page1). Allowing this extension to take place will keep millions of people from being put out on the street and from going hungry.
Overall our nation has fallen into a recession that is the most critical since World War II. This situation is extremely bad, but we can only hope that it will get better over the next few years. Before benefits expired in June when the Senate first failed to pass the benefits legislation, more than five million people were collecting some kind of extended unemployment insurance. (Izzo, 2010, page1). The extension has helped people breathe freely again, but has also put the federal government in billions of debt.