CONSERVATIVES IGNORE THE UNEMPLOYMENT CRISIS: A new study by the Center on Budget and Policy Priorities (CBPP) reveals that, because conservatives in Congress refused to extend federal assistance, 375,000 people will lose their unemployment benefits at the end of January. Never before have so many people lost benefits in a single month without being eligible for additional aid. Over the next six months, CBPP predicts, nearly two million workers will run out of benefits before finding a job – which is also a record. Nonetheless, Congress refused to extend unemployment benefits late last year, as House Majority Leader Tom DeLay (R-TX) said he saw "no reason" to help people through the tough economic time. For more see American Progress's chart showing the surge in long-term unemployment.
BREAKING PROMISES, PLAYING POLITICS: The White House and Congress have failed to act even after the economy produced 1,615,000 fewer jobs in the last six months than the White House Council of Economic Advisors predicted after the most recent tax cut. Since President Bush took office in January 2001, the economy has lost 2.3 million jobs. While extending unemployment benefits costs $1 billion a month – there is a $20 billion trust fund that has been set aside to extend benefits while the job market is weak. A CBO study found that "unemployment benefits are essential to prevent long-term unemployed from falling into poverty." The NYT suggests that the President and conservatives in Congress are reluctant to extend benefits in an election year because it would mar the message of a recovery.
