[Congressional Record Volume 148, Number 126 (Tuesday, October 1, 2002)]
[Senate]
[Pages S9660-S9662]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 EXTENSION OF UNEMPLOYMENT COMPENSATION

  Mrs. CARNAHAN. Mr. President, the state of our economy is causing 
great concern. The experts may tell us the recession is officially 
over, but that is cold comfort to many Americans.
  Last week, we got some startling new numbers on the pain being felt 
by working families. The income of middle-class families fell for the 
first time since the last recession. And for the first time in 12 
years, our national poverty rate grew. Today, almost 33 million 
Americans live below the poverty line.
  The stock market is also reflecting the uncertainty Americans feel. 
Yesterday, the market finished its worst quarter since 1987. The Dow 
Jones lost nearly 1,200 points in the last month, and the Nasdaq just 
hit a 6-year low.
  These losses are more than numbers. They are a crushing reality for 
far too many Americans who are working hard to save for their 
retirement.
  The recent declines are especially painful to our seniors who are 
living off their savings or planned to in the next couple of years.
  Congress has taken some important steps to address our economic woes. 
In July, we worked together to pass accounting reform legislation to 
begin restoring investor confidence. The American people are now 
receiving accurate information about a company's financial condition.
  Congress also worked across party lines last spring to enact a 
stimulus package. That legislation provides tax incentives for 
businesses to help them grow, invest, and avoid laying off employees.
  That law also extended unemployment insurance for workers who were 
hit the hardest by the economic slowdown. At that time, we made sure 
workers who had lost their jobs and exhausted their State employment 
compensation received an additional 13 weeks of unemployment insurance 
while they were looking for jobs.

  It is urgent that Congress act again. Our economic recovery is 
disappointingly slow.
  Last quarter, our economy grew at a meager 1.3 percent. Such an 
anemic growth rate means businesses are struggling to stay afloat and 
workers are struggling to pay their bills.
  Some have called this a jobless recovery. But there is no recovery 
for the jobless. Over the last year, my home State of Missouri has lost 
more than 55,000 jobs in manufacturing and farming.
  More than 8 million Americans are unemployed today. An alarming 
number of unemployed workers have been looking for jobs for more than 6 
months. By the end of the year, more than 2 million workers are 
expected to exhaust their unemployment compensation.
  Unemployment benefits are supposed to help tide workers over during 
hard times. It is intended to help them support their families, to help 
them pay the rent, and put food on the table.
  Right now our economy is not creating enough jobs for these people to 
get back to work. It will take more time for them to find a job.
  It is appropriate that we respond to this emergency as we have done 
in the past. In the early 1990s, Congress provided 26 weeks of 
additional unemployment insurance.
  I am very pleased to be a cosponsor of legislation introduced last 
week that will provide the same temporary relief. Our bill will ensure 
that if a worker cannot find a new job, and if that worker has 
completely exhausted the unemployment insurance currently available, 
then that worker could receive another 13 weeks of assistance.
  Workers and their families deserve this safety net. Congress cannot 
turn a blind eye to the hardships of jobless men and women, those who 
are hurting in this economy: the hurting, the helpless, and the 
hopeless.
  I urge my colleagues to act quickly. The time is running out for too 
many Americans.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Washington.
  Ms. CANTWELL. Mr. President, I rise today to urge my colleagues to 
consider a bipartisan effort to pass legislation on which Senators 
Kennedy, Clinton, and Wellstone have worked so hard. Their leadership 
has shown it is critical that we pass this legislation now.
  No other State, probably, needs this legislation more than 
Washington.
  Washington State is in the middle of an economic crisis resulting 
from a downturn in both our aviation and high-tech sectors. With the 
jobless rate at 7.2 percent, we are teetering among the highest, if not 
the highest, unemployment rates in the country.
  Mr. President, 202,000 Washingtonians are unable to find work. And 
over the last 12 months, our State has lost 50,000 jobs, and 60 percent 
of those are in the high-paying manufacturing sector.
  Just in the last 2 weeks, Boeing announced it would exceed its 
original projections of 30,000 layoffs that it has already carried out.
  Last month alone, 56,000 unemployed workers of Washington State 
received extended unemployment benefits. But all those benefits will 
expire on December 31, 2002, unless we take the proposal before us 
today and pass it into legislation. That means if we don't pass this 
legislation, those 56,000 workers will not be adding to our State's 
troubled economy.
  We can no longer wait because things are not getting better. Our 
State economist Chang Mook Sohn issued a report saying we are not going 
to see a recovery anytime soon and very little growth in the next 6 
months.
  We understand that unemployment checks are not long-term answers; 
jobs are. But while people look for new work, extending unemployment 
benefits will help unemployed workers make mortgage payments, put food 
on the table, pay utility bills, health care bills, and, in my State, 
the high cost of energy bills.
  Extending unemployment benefits will give people a new opportunity to 
upgrade their skills. As has been pointed out, extending benefits will 
also boost our economy, injecting into communities that have already 
been strapped with high unemployment rates a little bit of stimulus. A 
1999 Department of Labor study concluded that for every dollar spent on 
unemployment, it generates $2.15 of economic activity. This proposal 
for Washington State over the next 6 months would mean over $1 billion 
in economic stimulus.
  The cost of extending this program will be paid by the unemployment 
insurance trust fund, which has nearly $30 billion in it and is a very 
healthy account.

[[Page S9661]]

  Congress created unemployment insurance in 1935 to help unemployed 
workers get through the Great Depression. In the 1990s, we expanded 
that five times and even higher for the States that had high 
unemployment. So far this year, Congress has only done this once.
  We, in Washington State, need the support of our colleagues and of 
the White House in dealing with this economic crisis. It is clearly 
imperative that we should pass the Kennedy-Clinton-Wellstone 
legislation and do so immediately so that as our economy continues to 
struggle, we bridge the gap with a stimulus and a helping hand to 
working men and women in America.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, I bring to the attention of the Senate a 
major challenge facing many of the families in my State of 
Massachusetts, and that is the continued escalation of those on the 
unemployment list. We have seen that grow to a figure of 175,000.
  In Massachusetts, we have the highest number of unemployed workers of 
any of the New England States. Two years ago we had the lowest 
unemployment of any of the States. Now we have the highest, with very 
little hope in the future for getting these workers back to work.
  There has been a reduction in the total number of jobs. We have more 
workers searching for fewer jobs than at any time in recent history. 
These are not just figures developed by the Democratic Party. They are 
figures developed by the Department of Labor: 8.1 million unemployed, 
trying to fill 3.2 million positions. The disparity between the high 
number of unemployed and the available jobs is one of the highest 
percentages of any recent time, and that is true all over this country.
  The people of my State are wondering how they are going to make ends 
meet, whether they are going to see the expiration of their 
unemployment compensation.
  I was here in the early 1990s, when on four to five different 
occasions we had bipartisan support for extension of unemployment 
compensation.
  The purpose of unemployment compensation is to reach out a helping 
hand to workers who work hard, play by the rules, are trying to pay a 
mortgage, trying to pay for children's school clothes, and to live a 
somewhat normal life, but because of the economic exigencies they are 
out of a job.
  The unemployment fund is now at a surplus of some $25 billion. It was 
developed for just the kinds of reasons we are facing today. We, on 
this side, believe we ought to have an opportunity to extend 
unemployment compensation to the families of this country thrown out of 
work through no fault of their own. They ought to be able to at least 
have this lifeline that will help support them during this difficult 
time before they are able to get back on their feet.
  That is the issue. It is one of decency, fairness, and humanity. At 
other times in our history, Republicans and Democrats in this body came 
together in order to provide that.
  Now we are finding the Republican leadership opposing this proposal, 
effectively saying thumbs down to workers in my State, thumb downs to 
workers all across New England and all across the country. It is the 
wrong policy at the wrong time.
  I join with my colleagues, with Senator Wellstone, who has been the 
leader in this battle for extended unemployment compensation, and my 
friend and colleague, Senator Clinton, Senator Carnahan, Senator 
Cantwell and others, urging the Senate to take action. We can do it. It 
has been done in a bipartisan way. It should not be partisan. This is 
about hard-working Americans. Are we going to reach out with a helping 
hand to make sure their interests are going to be protected?
  We ask the Senate for consent to provide additional unemployment 
benefits for millions of out-of-work Americans. I urge my colleagues to 
give that consent.
  Over 2 million Americans who have lost their jobs are about to also 
lose their unemployment benefits. The Emergency Unemployment 
Compensation Act of 2002 will extend their benefits just as we have 
every recession over the past three decades. Families are struggling, 
and we must act.
  In fact, since President Bush assumed office in January 2001, the 
economic well-being of America's families has dramatically 
deteriorated. This is not just an economic coincidence, it is the 
result of the economic policies of this administration--policies which 
neglect the basic needs of working men and women, lavish extravagant 
tax breaks on the wealthiest taxpayers, and allow corporate abuse and 
excess to go unchecked.
  President Bush says he has already taken care of the troubled economy 
by cutting taxes and, instead of supporting our bill, called on 
Congress to make the tax cuts permanent.
  There are now 8.1 million unemployed Americans, 2.2 million more than 
when President Bush took office. And no amount of tax cuts for the 
wealthy can restore their jobs and pay their bills.
  But this is deja vu all over again. The first President Bush twice 
blocked legislation to provide much-needed unemployment benefits before 
finally signing into law three benefit extensions. In this recession, 
800,000 more workers are expected to run out of unemployment benefits 
than in the last recession during the early 1990s. It will only get 
worse if we don't act.
  Last March, Congress extended benefits for the first and only time 
during this recession. That is not enough. Already, more than 1 million 
workers have exhausted these benefits without finding a new job, and 
another 2 million will join their ranks by the end of the year.
  Most of them have families to support. They are scrimping on school 
supplies; maxing out credit cards; and juggling electric bills with 
mortgage payments. These are our fellow citizens, and they need help 
now.
  We are supporting legislation that mirrors the benefits signed into 
law by the first President Bush in the early 1990s. The bill will 
extend benefits for workers in all States, and provide additional 
benefits for those in high-unemployment States. This bill will ensure 
that workers can keep a roof over their heads and food on their tables 
while they search for jobs in this tight economy.
  This Bush administration has fought efforts to provide adequate 
unemployment assistance to workers. But the administration can no 
longer afford to ignore the pain and the needs of struggling families. 
We must act--and act now--to live up to our obligations to help our 
fellow citizens in their time of need.
  Alan Gonsenhauser of Northborough, MA, is one of those workers who 
has exhausted his benefits. Formerly the vice president of a consulting 
firm whose largest client was Enron, he was laid off last December. 
Nine months later, he is still looking for a job. He, his wife, and 
their two children have relied on unemployment benefits and personal 
savings to cover family expenses, but his benefits expired last month.

  Many hard-working Americans and their families have suffered as a 
result of the recent spate of corporate scandals and the failure of the 
administration to take decisive action. At WorldCom, more than 20,000 
workers were laid off. At Arthur Andersen, 7,000 workers were laid off. 
At Global Crossing, over 9,000 workers were laid off. Enron laid off 
about 4,000 workers.
  Americans who are out of work are watching their savings shrink while 
the cost of living just grows and grows. The cost of health insurance 
for families has risen 16 percent in the last year and a half, and 27 
percent for single individuals. Even more workers are being forced to 
go without health insurance. The cost of prescription drugs is going up 
at three times the rate of inflation. Yet this administration 
repeatedly sides with the health care industry and against working 
families.
  Families are struggling to pay for college for their children. 
Tuition alone at a public 4-year college costs nearly 8 percent more 
this year than last year--an increase of more than triple the rate of 
inflation. The importance of higher education is increasing but the 
ability of middle-class families to pay for it is decreasing.
  Out-of-work Americans are not only losing their health benefits, they 
are also losing their homes. According to new data from the Mortgage 
Bankers Association of America, home foreclosures are at all-time 
highs. Families who spent years saving to purchase their dream homes 
are now unable to afford to keep them.

[[Page S9662]]

  These are the economic fears which are keeping American workers up at 
night--losing their job, losing their homes, losing their retirement 
savings, losing their health care, and paying for college.
  Millions more of them are kept awake by these fears today than were 
18 months ago. The Bush economy has turned the American dream into a 
nightmare for them.
  It's time to restore economic security for workers and the Nation. 
Democrats support extending unemployment benefits, guaranteeing 
retirement security through pension reform, raising the minimum wage, 
insuring health care for the uninsured, and making prescription drugs 
and college more affordable for millions of Americans. America's 
working families deserve nothing less.
  The PRESIDING OFFICER. The majority leader.
  Mr. DASCHLE. Mr. President, I compliment the distinguished Senator 
from Massachusetts for his powerful statement and my colleagues, the 
Senators from New York, Missouri, and Washington State, and others, in 
support of the Wellstone unanimous consent request. I know he will 
propound it momentarily. We are waiting for the assistant Republican 
leader to come to the Chamber.
  In the meantime, I add my voice to those who have spoken this 
morning. The economic conditions in this country continue to worsen. We 
now have 2 million jobs that have been lost over the last 20 months. 
The number of the private sector unemployed has gone up by over 2 
million people. We have seen the number of long-term unemployed go from 
about 650,000 now to 1.5 million people--those who are unemployed for 
more than 6 months. We have seen a $4.5 trillion loss in market 
capitalization. We have seen the number of foreclosures go up at a rate 
higher than anything in recent years.
  Over and over, every single indicator points to the fact that this 
economy continues to worsen. Yet we have an administration that, for 
whatever reason, chooses to ignore it entirely.
  The point we make this morning and have made now for some time is 
that at the very least we ought to be sensitive to those who are the 
victims of this tragic set of economic circumstances.
  Felix Batista is one of those people. I heard about Mr. Batista when 
I was in New York in the last couple of days. Felix Batista worked for 
the World Trade Center for 23 years. After the tragedy of 9/11, Mr. 
Batista was left unemployed. He has yet to find a job more than a year 
later, in spite of the fact that he was an outstanding employee, that 
he has family, that he has run out of his unemployment benefits. He has 
no recourse but to continue to plead for help, ask for our 
understanding. I don't know whether Mr. Batista is watching this 
morning, but I am sure if there are those who are unemployed with 
access to C-SPAN, they have to be wondering, hoping, wishing the Senate 
would act expeditiously.
  They didn't have to hope or wait 10 years ago. We went through a 
recession at that time and we extended unemployment benefits--not once, 
not twice, but on three occasions. We provided the safety net to those 
who were unemployed in the long term. We provided some hope, some 
opportunity to have a sense of worth. That is all we are asking, Mr. 
President. Give these people a chance. Give them the hope and the real 
opportunity they need to be able to pay their bills, buy groceries, to 
ensure that their rent payments are made so they are not evicted in 
addition to being unemployed. So I hope that, at the very least, we can 
extend unemployment benefits again. We have done it before. The need 
could not be more urgent.

  While we can talk about all the other things we need to do about the 
economy, there should not be any difference in opinion whatsoever, 
Republican or Democrat, when it comes to economic security for these 
unemployed workers, these families left with nothing--the Felix 
Batistas of the world, who are good employees, who work hard, who 
expect at least some understanding for their circumstances now.
  I yield to the Senator from Minnesota to make his unanimous consent 
request.
  The PRESIDING OFFICER. The Senator from Minnesota is recognized.
  Mr. WELLSTONE. Mr. President, I know the Senator wants to speak on 
this matter as well. I can do this in a very brief timespan, though I 
think this is a critically important issue. I thank, as always, my 
colleague Senator Kennedy for his leadership, along with Senator 
Clinton.
  My State of Minnesota has lost 40,000 jobs in the last 18 months. I 
have not seen anything like this for a long time. We have 123,000 
Minnesotans who are officially unemployed, and that doesn't include 
people who are self-employed, people who work part time, and those 
people who have become discouraged workers. Right now, unemployed 
workers in Minnesota are looking for jobs, and they outnumber unfilled 
jobs by 2 to 1. This is a serious situation.
  Look at the reports today about the stock market and the economy. The 
good thing we did in the 1990s, in a bipartisan way, is that when we 
were in the earlier years, before President Clinton, in recession, we 
extended the unemployment benefits another 13 weeks. That is exactly 
what we are talking about here--the Emergency Unemployment Compensation 
Act. It is a bipartisan measure. It is critically important. Basically 
what we are saying is that we ought to at least, with this Economic 
Security Act, provide an additional 13 weeks of extended benefits for 
workers who are either running out of benefits and won't even get the 
13 weeks they are due in December or those who have already run out of 
all of their benefits. For those States with high levels of 
unemployment, we are talking about another 20 weeks of unemployment 
benefits.
  Colleagues, this is compassion. This is bipartisan. The economy is 
not doing well, and the families we represent in our States are not 
doing well.

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