Jump to content



Photo
- - - - -

Unemployment benefits cost: $520 billion (over 5 years)


  • Please log in to reply
8 replies to this topic

#1 concert andy

concert andy
  • VibeTribe
  • 10,644 posts
  • LocationPhilly

Posted 29 November 2012 - 02:32 PM

http://finance.yahoo...Y3Rpb25z;_ylv=3


Jobless Americans have collected more than half a trillion dollars in benefits over the past five years.

State and federal unemployment insurance programs have cost roughly $520 billion, according to a Congressional Budget Office report released Wednesday.

The price of continuing this safety net will be the subject of intense debate in Congress as lawmakers decide whether to extend the deadline to file for federal benefits beyond year's end as part of the fiscal cliff negotiations. Extending federal jobless insurance next year could cost as much as $30 billion, according to the CBO analysis.

Here's how it works: The jobless generally receive up to 26 weeks of state benefits and then shift to federal emergency unemployment compensation, which is broken into four tiers and lasts up to 47 weeks. There is a separate federal extended benefits program, which provides up to 20 weeks, but only New Yorkers are eligible for it at this time.

CBO looked at four extension options and estimated the cost of each.

--Fully extending both federal programs for a year, which carries a price tag of $30 billion.

--Providing up to 14 more weeks of federal emergency benefits at a cost of $14 billion.

--Allowing recipients to finish receiving the benefits left in their tier at the end of the year, which would cost $4 billion.

--Lengthening the current extended benefits program by a year for a price of $3 billion.

The agency also highlighted the effect of once again extending unemployment benefits. While it would provide greater protection for those who lose their jobs and allow them to continue spending, it also provides an incentive for recipients to stay unemployed longer than they otherwise would have.

Extending the programs for a year would also boost the economy $1.10 for each dollar of cost since the recipients would soon spend those funds. GDP would rise by 0.2% and 300,000 jobs would be added, according to CBO.

Related: Facebook launches job search app

Congress first enacted the federal benefits package in June 2008, and President Obama extended it to 99 weeks in November 2009. Lawmakers last lengthened the deadline to file for benefits in February, but they also shortened the duration the jobless can receive checks. Federal checks are scheduled to stop at the end of the year, forcing lawmakers to decide whether they want to extend the filing deadline for the tenth time since the Great Recession began five years ago.

More than 2 million jobless Americans will lose their federal unemployment insurance during the holidays if Congress doesn't extend the deadline to file for additional benefits. And another 1 million who exhaust their state benefits will not be able to sign up for the federal program in the first quarter of 2013, according to the National Employment Law Project, an advocacy group. It argues that benefits should not end as long as the unemployment rate remains stubbornly high at 7.9%.

#2 Feck

Feck
  • VibeTribe
  • 7,756 posts

Posted 29 November 2012 - 03:49 PM

it would be nice if they included some info on where the $$ is coming from and will come from if they extend.

#3 TEO

TEO

    VibeGuide

  • VibeGuide
  • 22,591 posts

Posted 29 November 2012 - 03:59 PM

Taxpayers

#4 Tim the Beek

Tim the Beek
  • VibeTribe
  • 15,885 posts

Posted 29 November 2012 - 04:08 PM

Here's how it works: The jobless generally receive up to 26 weeks of state benefits and then shift to federal emergency unemployment compensation, which is broken into four tiers and lasts up to 47 weeks.


Of note, or not, the states also borrow from the Federal Program if they don't have the dough to administer their programs. In CT, businesses have been paying a special assessment for the past two years to pay interest on loans from the Fedgov. :(

#5 bigtoddy

bigtoddy
  • VibeTribe
  • 2,227 posts

Posted 29 November 2012 - 07:02 PM

We missed our golden opportunity to improve infrastructure around the world. Work for your benefits (that were above the normal 26 weeks or whatever) a la WPA or CCC etc.

#6 PeaceFrog

PeaceFrog
  • VibeTribe
  • 8,284 posts
  • LocationWhisky a Go Go

Posted 29 November 2012 - 07:43 PM

Obviously the 60 cents that I pay per week toward this program in my paycheck isn't enough and needs to be raised.

besides that -- if you don't allow these people to collect unemployment they'll just go on welfare and food stamps. Yes, it will be cheaper... but I think would at least damage people's morale, and at worst create a depression.

#7 concert andy

concert andy
  • VibeTribe
  • 10,644 posts
  • LocationPhilly

Posted 29 November 2012 - 07:46 PM

Obviously the 60 cents that I pay per week toward this program isn't enough and needs to be raised.

besides that -- if you don't allow these people to collect unemployment they'll just go on welfare and food stamps. Yes, it will be cheaper... but I think would at least damage people's morale, and at worst create a depression.


Actually, employers pay .06 ish percent of your salary towards unemployment also. Something I learned by my wife having her own business, and paying payroll taxes.

#8 MeOmYo

MeOmYo
  • VibeTribe
  • 7,417 posts

Posted 29 November 2012 - 08:59 PM

UI rates vary based on retention as well.

#9 Tim the Beek

Tim the Beek
  • VibeTribe
  • 15,885 posts

Posted 29 November 2012 - 09:00 PM

UI rates vary based on retention as well.


This