Emergency Unemployment Insurance: The Costs

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Congress still has significant amounts of bickering ahead, before 2013 is done. Image by Vcelloho

It is important to note, however, that these are gross numbers. They do not take into account the increase in the potential economic activity generated by additional household income provided by the program. Furthermore, it can be argued that these costs represent a relative drop in the bucket as compared to the over $2 trillion in total stimulus spending incurred by the United States since 2009 alone. Nevertheless, the program has become a bit of a political football, as many austerity-minded Republicans believe the federal budget simply cannot afford the cost, versus Democrats who feel the U.S. cannot afford not to offer extended benefits.

Expiring Jobless Benefits

Regardless of the political opinions surrounding the topic, jobless benefits were extended an additional year. It appears all but certain they will finally expire at the end of 2013, but after a likely-to-be-contentious set of negotiations between the Obama administration and House Republicans yet to come, full resolution remains to be seen.

Resources

File Unemployment. Unemployment Benefits Comparison by State (2012). Accessed January 15, 2012.

Mayer, David A. Types of Unemployment (2012). Net Places. Accessed January 15, 2012.

Luhbi, Tami. Cost of federal unemployment benefits so far: $434 billion (2012). CNN. Accessed January 15, 2012.

Census.gov. Number in Poverty and Poverty Rate: 1959-2011 (2012). Accessed January 15, 2012.

Census.gov. Median and Average Sales Prices of New Homes Sold in the United States  (2012). Accessed January 15, 2012.

Portal Seven. Unemployment Rate 1990-2012 (2012). Accessed January 15, 2012.

Your Dictionary. Full Employment – Business Definition (2012). Accessed January 15, 2012.

Bureau of Business and Economic Research. Per Capital Personal Income by State (2012). Accessed January 15, 2012.

Bureau of Labor Statistics. The Employment Situation – December 2012 (2012). Accessed January 15, 2012.

Investopedia. Definition of Unemployment Insurance (2012). Accessed January 15, 2012.

Congressional Budget Office. Unemployment Insurance in the Wake of the Recent Recession (2012). Accessed January 15, 2012.

Fact Check. Obama’s Deficit Dodge (2012). Accessed January 15, 2012.

Cengage. A Look at Consumer Spending-1990-2009. (2009). Accessed January 15, 2012.

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