Hurt Not Helped
by the Extension of Unemployment Benefits
For Immediate Release.
January 9, 2003 At
the request of President George W. Bush, both the Republican-controlled
Senate and House of Representatives unfortunately passed the Unemployment
Insurance Benefits Extension Act (S. 23) on January 7, 2003 and January
8, 2003, respectively. Immediately,
after its passage in the House, President Bush signed the bill into
law on January 8, 2003.
measure provides about 2.5 million unemployed workers additional unemployment
benefits for another five months. This
action by Washington lawmakers will only continue to prolong the uncertain
economic conditions affecting the United States (U.S.) economy and will
also increase the unemployment rate.
When benefits are just
about to stop workers are almost three times more successful in finding
employment according to a study co-authored by Larry Katz, the chief
economist at the Labor Department during the Clinton administration. Compared to those who are receiving unemployment insurance, workers
not eligible for such benefits find employment more than twice as rapidly. Employment opportunities are available despite
the six percent unemployment rate, and these workers during their temporary
unemployment should at least be looking for temporary employment.
By extending unemployment insurance benefits the unemployed are
lured into complacency hampering their effort to become reemployment.
Dr. Joel P. Rutkowski,
president of the American Voice Institute of Public Policy said, “To
avoid a politically-charged issue, Republicans avoided what is right
and did what was politically expedient in the short- term.
Such actions will only continue to prolong the current economic
malaise as well as increase the unemployment rate.”
only thing that Republicans have accomplished by their compromise is
giving the Democrats an issue when the economy does not turn around
as rapidly as it should. It’s the economy, stupid.
Joel P. Rutkowski, P.h.D.
President, The American Voice Institute Of Public Policy
to the American Voice Institute of Public Policy Home Page