Bush Extends Unemployment Benefits

President Signs Legislation That Gives Jobless Extra Three Months Of Financial Aid

(AP)  The White House says President Bush signed into law a bill that Congress approved to keep unemployment checks flowing to jobless Americans through the holiday season.

Mr. Bush signed the bill at the White House just before boarding Marine I Friday morning for a short trip to Andrews Air Force Base and a flight to Lima, Peru, to attend the 21-nation Asia-Pacific Economic Cooperation forum.

The Senate approved the bill provide up to three months of extra benefits for those whose unemployment benefits have run out or are about to expire. The House passed the bill in October.

Its passage followed a report Thursday saying that new claims by laid-off workers for jobless aid had reached a 16-year high and the number of people looking for work had surged past 10 million.

Earlier in the year, Mr. Bush expressed doubts about further benefit extensions, but he came to support the legislation.

"With more Americans filing jobless claims than at any time since the 1992, the Senate's passage of the House's unemployment insurance extension legislation will help speed relief to more than 2 million workers who continue to search for new jobs in these difficult economic times," said House Speaker Nancy Pelosi, D-Calif.

Those times became a little more difficult Thursday as the Dow Jones industrials dropped more than 400 points for the second straight day, reaching the lowest level in more than five years. In part, investors were discouraged by the inability of the White House and Congress to agree on a plan to provide relief to the battered auto industry.

Democrats had sought to carve out $25 billion from the $700 billion financial rescue plan to keep the auto industry in business through next spring, but the White House and Senate Republicans objected.

Democratic leaders said they were ready to come back into session on Dec. 8, but only if the Big Three automakers first come up with a roadmap showing how federal aid will put them on the path to future economic viability.

At stake are millions of jobs in the auto and related industries that could go under if one or more of the major automakers goes bankrupt.

"We are prepared to come back into session the week of Dec. 8 to help the auto industry," said Senate Majority Leader Harry Reid, D-Nev. "But only if they present a responsible plan that gives us a realistic chance to get the needed votes."

Other federal actions to resuscitate an economy crippled by home foreclosures, a credit freeze and confusion in financial markets will probably have to wait until January.

President-elect Barack Obama has pledged to make economic recovery the immediate focus of his new administration and both the House and Senate will have increased Democratic majorities eager to support him.

The voice vote in the Senate Thursday came just hours after the Labor Department reported that claims for unemployment benefits jumped last week to 542,000. That marked the highest level since July 1992 and provided fresh evidence of a rapidly weakening job market that is expected to get even worse next year. The number of people searching for work has now topped 10 million and the civilian unemployment rate now stands at 6.5 percent, a 14-year high.

About 1.2 million people would exhaust their unemployment insurance by the end of the year without the extension, sponsors said. The measure is estimated to cost about $5.7 billion, although economists put the positive impact at $1.64 for every dollar spent on jobless benefits because the money helps sustain other jobs and restores consumer confidence.

"Extending this basic assistance to help unemployed workers pay their mortgages, feed their families, and heat their homes is a down payment on broader economic recovery legislation that our economy desperately needs," said House Ways and Means Committee Chairman Charles Rangel, D-N.Y.

The legislation as approved would provide seven additional weeks of payments to people who have exhausted their benefits or will exhaust them soon. Those in states where the unemployment rate is above 6 percent would be entitled to an additional 13 weeks above the 26 weeks of regular benefits. Benefit checks average about $300 a week nationwide.

The benefits provided would be in addition to 13 weeks of federally funded extended benefits Congress approved last June.

Congress has enacted federally funded extensions seven times in the past 50 years during economic slumps - in 1958, 1961, 1972, 1975, 1982, 1991 and 2002.

The White House had earlier opposed a broader $61 billion bill that would have helped states meet Medicaid costs and fund public works projects as well as extend jobless benefits.

But on Thursday White House press secretary Dana Perino urged Congress to move quickly on the benefits bill. "The recent financial and credit crisis has slowed the economy, and it's having an impact on job creation," she said.

Unemployment insurance is a joint program between states and the federal government that is almost completely funded by employer taxes, either state or federal.

In yet another bad sign for the economy's near future, the private, New York-based Conference Board said Thursday that its monthly forecast of economic activity declined 0.8 percent in October. Over the past seven months, the index has declined at a 4.7 percent annual rate, faster than at any other time since 2001.

Most of the decline was due to the drop in stock prices, a decline in building permits and sagging consumer expectations.

[cjs_cnet_xyz]

While it might feel good that Detroit is getting its comeupance for years of producing poor product, it is wrong to let the U.S. auto industry fail for the crimes of the credit industry.

While there are those that do not want the auto industry to have access to the 700 billion bailout. I say let them have 75 billion. The auto industry will be able to make loans for their product without the finance industry stepping in as a middle man. Punishment (in the absence of capital and loans) would be denied from the finance industry for its egregious behaviour.

Detroit has worked hard with the funds it has had. Ford offers a nifty Escape hybrid and is bringing some of its better mileage vehicles from Europe. GM offers a full-size SUV hybrid with a full-size truck hybrid and the Volt on the way. Dodge has just shown three viable concepts that look more like they are production worthy. If the consumer really values the types of vehicles they offer, they can step up with their dollars.

This industry has already been punished for the credit industry''s abuse in the form of lost sales over the past couple years. They first lost billions by potential customers buying into the housing market(whether they could afford to or not). Now they are losing by not being able to finance paying customers. Give the U.S. auto industry a break and put the blame back on the credit industry (WHERE IT BELONGS).

[klingon69]

I see many signs in retail establishments looking for workers. I KNOW it is a hardship to get a job that pays less than your old one BUT hold your head up, walk in, and ask for an application. I did. I can get some insurance coverage even with part-time employment and I''''m gradually paying bills. Put your pride aside and get the jobs that are available.

Posted by Puzzler125 at 08:30 PM : Nov 21, 2008

You are lucky then. Having worked in retail for many years, I can tell you that your insurance will disappear. More retailers are hiring part-time so they don''t have to provide as many benefits. he last retailer I worked for cut out insurance for all part-timers. Some have taking to only giving a person 3 hrs a day, so they don''t have to pay for a 15 mnute break.
Most retailers have eliminated commission(which kept salepeople in a decent income level), and went to a straight hourly wage.
A few years back one lady who had worked for me during the holiday seasons came back because the previous years with commission she could make plenty to help with Christmas and bills. this time she left before the season was half over, because she was making barely over minimum wage.

[puzzler125]

I see many signs in retail establishments looking for workers. I KNOW it is a hardship to get a job that pays less than your old one BUT hold your head up, walk in, and ask for an application. I did. I can get some insurance coverage even with part-time employment and I''m gradually paying bills. Put your pride aside and get the jobs that are available.

[akpals]

I think those who are offended somehow by this bill cannot possibly see the situation those of us who have been recently laid off are facing. What are we to do when NOBODY is hiring? In my own situation, I have few options. Drop out of school ( I was working, raising 3 kids, and in college with NO financial assistance), try to sell my house and move to find work, or draw unemployment to pay the bills. If you found yourselves in this situation what would you do? Just remember, to get unemployment you have to have been working! It''s not like we''re all a bunch of freeloading bums.

[foundme-2009]

Laywers at the Internal Revenue service were so incompetent(http://howgbeattheirs.spaces.live.com)they lost an income tax case to a lone pro per without an attorney. Law firms SulmeyerKupetz as well as Charlston(http://www.16lunchtime42.com)Revich Wollitz routinely violated state labor meal period laws. Some states and companies still refuse to pay out unused "sick pay" even though it is worked for and calculated the same as "vacation pay". Perhaps it would be fair for the little guy for us to change the name and purpose of "unemployment benefits" to "social security benefits."

[punkntr]

when i was young my dad used to scoff at the idea of unemployment. it was for beggars and the lazy. times have changed over the years and having worked in my profesion for many years found myself unemployed ,ashamed and confused. lowering my head , my ego, and my pride i filed for unemployment. 320 dollars a week . you wouldnt think you could make it on that little bit but you learn. it was four months before i found steady work again and had it not been for the benifits i would not have made it . a hand out , hardly . my govt has sold me out to the greedy and those who have their own intrests in mind. they crashed the housing industry on purpose and then walked away like the child that broke moms bowl when no one was looking. 320 a week is the least they can do while the rest of us try to restart our lives and new careers.

[antoniof123]

That money could be used a lot more wisely in my opinion. I still can''''t believe interest on debt is seven times what we spend on education...
Posted by aggiekat2004 at 10:24 AM : Nov 21, 2008

What you mean the fiscal family value party of god is spending money like it is water. The conservative have shown the American people that they are so irresponisble that they need to go back to 1st grade.

Enough of their nonsense it will be a generation before they see power again. And you want to know some thing I don''t care how mad they get.

[aggiekat2004]

Oh, and that coming from our first Harvard MBA president.

Sounds like he might have failed Accounting and Finance...

[aggiekat2004]

Another interesting budget number...

The US spent approximately $461 billion in INTEREST PAYMENTS on the national debt this past year, but only $65 billion for education. Health and Human Services I think was up in the $700+ billion range.

The debt has increased significantly since GWB went into office.

That money could be used a lot more wisely in my opinion. I still can''t believe interest on debt is seven times what we spend on education...

[aggiekat2004]

And I don''t consider unemployment to be a government handout...companies pay into that fund.

My alcoholic drug-addicted brother who chooses NOT to work gets healthcare and a handout from MY tax dollars. He''s got two friends collecting DISABILITY because they have "ADHD" and can''t hold a job. They spend their days playing video games while they live with their parents, and make more than I do on unemployment...and they''ve never held any better job than working at a local auto parts store.

I can''t even afford my $350 COBRA payment (single person, in good health...that''s RIDICULOUS) so I''m wingin'' it without insurance.

The system is messed up, and the middle class is being squeezed to death.

[aggiekat2004]

being handed charity is not a gift....it is actually hurting people in long run as they will get used to being taken care of

Posted by jamesm12341 at 09:52 AM : Nov 21, 2008
-----------------

I know that...but I''m in the construction field, well-educated, but having difficulty finding a job because the economy''s so messed up.

I also have a strong background in technology, but am having difficulty finding a job in that field.

I don''t expect charity, but I do blame George for making some bad decisions and letting certain wealthy groups of people run amuck...I''m so mad about the bailout of these large institutions, and think that the UAW and an environment of entitlement is hugely responsible for the problems at GM.

As I watch my 401K dwindle to nothing, and my parents (retired) who have lost over half of their retirement, I''m a little perturbed.

Meanwhile, GWB feels the need to bail out companies who consistently make bad decisions. And if we let them fail, the economy will tank.

And I WANT to work. I have many marketable skills. I just can''t afford to pay my reasonably-priced mortgage on my first home (ever!) by working at Home Depot on a single person''s income. Without unemployment to bridge that gap, I WILL lose my house.

[aggiekat2004]

Oh yeah...yesterday he said he was going to veto this because it was "fiscally irresponsible."

GEORGE BUSH? FISCALLY IRRESPONSIBLE? Say it isn''t so. This is news to me.

So it''s alright to bail out the big companies who were FISCALLY IRRESPONSIBLE, but no okay to help the little guys.

So nice that all of your friends are rich, and you''ve chosen to help them over us commoners.

Thank you, your highness, for bestowing upon us this gift.

[antoniof123]

So the President finally did something right too bad it is too late.

[culturechang]

The federal govt''s financial position is so compromised right now. The next big headline will be unsurmountable govt debt. Its already there, but no one acknowledges it....right now.