[Congressional Record Volume 156, Number 156 (Thursday, December 2, 2010)]
[Senate]
[Pages S8372-S8374]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXTENSION OF UNEMPLOYMENT BENEFITS
Mr. CARDIN. Mr. President, the 111th Congress is drawing to a close
and families across the Nation are preparing for the holiday season. In
the Senate, we still have many items on our agenda, bills we need to
complete before we adjourn. Many of these bills represent the
priorities of various Senators addressing issues that some have worked
on for this entire Congress, some for several Congresses. Other bills
are necessary to prevent certain longstanding policies from expiring,
such as tax relief for working families, and still others are needed to
avert cuts in key programs such as Medicare payments to doctors and
protecting rehabilitative services for seniors.
In addition to marking the start of the holiday season, this week
also brings a devastating reminder of the economic disaster facing many
families. On Monday, action to extend unemployment benefits to millions
of people was blocked in the Senate by Republicans. Yesterday, those
benefits expired. The Republicans are telling us we cannot consider any
legislation until we take up tax breaks for millionaires. On December
1, more than 800,000 Americans were left without benefits and up to 2
million more will soon follow by the end of the year, including 48,000
Marylanders. There are some in this body who may not recognize the
peril facing families whose benefits are being cut off. Every day I
hear from Marylanders who are asking
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Congress for help. They want to work but can't find employment. Many
have been looking for a long time, over a year, sending hundreds of
resumes, pounding the pavements, attending job fairs and numerous
interviews, all to no avail. They want us to take the steps necessary
to help the economy create jobs, and they need some assistance in the
meantime to help them stay afloat.
Maryland's unemployment rate stands at 7.4 percent statewide.
Although that is lower than the national average, in some counties the
situation is more dire. In Baltimore City, the rate is 11 percent. In
Dorchester County, it stands at 9.8 percent. In Somerset County, it is
9.9 percent, and in Washington County, it is almost 10 percent. Earlier
this week several building trade workers visited my office. For them
this is not a recovery, this is not a recession, this is a depression.
That is because in the construction industry, unemployment rates range
from 30 to 50 percent, depending on location. Among one local union in
Baltimore the unemployment rate is 27 percent; more than one out of
every four members has no job.
In fact, Labor Department statistics tell us that for every job
opening there are five individuals actively seeking employment. The
odds are not very good for someone trying to find employment today.
That is why we have had long-term unemployment and why we need to
extend benefits to those who are in need today. Nearly 15 million of my
fellow Americans cannot find work. Of that total, the number of long-
term unemployed, defined as those who have been jobless for 27 weeks or
more, is about 6.2 million. As of last month, two-fifths of unemployed
persons have been out of work for at least 27 weeks. Behind the
aggregate numbers, there is a deeper sense of despair in many
communities. Teenage unemployment is over 27 percent, Black
unemployment is over 15 percent, and Latino unemployment is over 12
percent.
In addition to the number of people out of work and seeking work, the
Department of Labor also calculates data that includes people who want
to work but are discouraged from looking and people who are working
part-time because they can't find full-time employment. In October
2010, the rate stood at 17 percent in that category.
During the course of this national debate over unemployment
compensation, a number of issues are in contention: those who say the
jobs are there and people should continue looking; whether this should
be paid for or considered emergency spending; whether we should focus
on growing the economy rather than on benefits; whether it is time to
end benefits because the economy is recovering; that the unemployed do
not deserve extended benefits and more.
Let me address some of these issues. For those who say the jobs are
there but people just aren't looking, in September 2010, almost 15
million workers were unemployed, but there were only 3 million job
openings or five unemployed workers for every available job. In other
words, if every available job were filled by unemployed individuals,
four out of the five unemployed workers would still be looking for
work. Last night we heard in this Chamber that the objection to
extending unemployment benefits is because it is not paid for. It is
right to extend tax breaks for millionaires and not pay for it because
that somehow is an emergency situation, but extending unemployment
benefits to those who are in dire need doesn't qualify as emergency
spending. Historically, unemployment compensation extensions have been
treated as emergency spending by Congresses and administrations going
back to the Reagan administration. Families across Maryland and the
Nation will tell us that when you have a mortgage that is due, when
your heat is about to be cut off, when you cannot buy groceries for the
family, that is an emergency situation. Their situations constitute
emergencies, and we should treat them as such.
For those of my colleagues insisting extending benefits is not as
important as getting the economy back on solid footing, I point out
that numerous economists have pointed out the value of unemployment
insurance benefits. These are dollars going back into the market,
raising consumption, and creating jobs.
Let me compare it to what my Republican colleagues are saying about
tax breaks for millionaires. Where is that going to benefit the
economy? That money isn't going to go right back. We know unemployment
benefits do go right back into the economy. The nonpartisan
Congressional Budget Office has estimated that for every $1 we spend in
unemployment compensation, we generate more than $1.90 back into the
economy. In other words, it is a stimulus. The nonpartisan CBO has
analyzed 11 different measures for their effectiveness in growing the
economy, and it rates extending unemployment benefits as the single
most effective tool. This helps job growth. When people receive
unemployment benefits, they spend it immediately. That helps retail
establishments, grocery stores, including many small businesses, and
the overall economy. It is the definition of stimulus spending, and it
is immediate.
With no extension, unemployed workers and their families will have
less money to spend and will cut back on their purchase of goods and
services, resulting in weaker sales, hurting businesses, and costing
jobs.
Another sentiment I have heard expressed is, we are giving a handout
to unemployed Americans. Unemployment insurance is not a handout. It is
not government largesse. Unemployment insurance is just that. It is an
insurance program. It is an insurance program employees and employers
contribute to so during difficult times, there is money available when
a person loses their job. People receiving benefits had jobs, and the
time they worked is reflected in the weeks of benefits they receive.
This is an insurance program. It is countercyclical. It is supposed to
be available during tough economic times. That is why unemployment
insurance is paid. These funds should now be available to help people
who need them.
Finally, I wish to address a misconception about the amount of
unemployment benefits. These are not extravagant payments. The average
benefit amounts to $302 per week.
The reason we are told we can't bring this up is because we have to
bring up the tax bill first. We can't get the tax bill up because
Republicans are insisting we have to deal with the millionaires. The
tax breaks for the millionaires are far more money than the $302 per
week for someone who is on unemployment compensation. What these
families receive is not a lot of money, but it is a lifeline. It keeps
food on the table, heat through the winter months, and gas in the car
while they are continuing to look for jobs. The extension only gives
those who are eligible for unemployment benefits the same number of
maximum weeks we provide others during these economic times. It does
not lengthen the total number of eligible weeks of benefits.
The highest unemployment rate at which any previous Federal emergency
unemployment program ended was 7.2 percent in March of 1985, during the
second Reagan administration, much lower than where we are today. So
where do we stand? We have passed several short-term extensions, and we
need to act again. Here we are today, as 800,000 Americans across the
Nation have no benefits whatsoever. Yet our Republican colleagues
object. They object to a short-term extension. They object to any
extension. They say: First, let's bring up the tax bill that provides
breaks for millionaires, and we can't bring up the middle-income tax
relief until we take care of the millionaires.
Nearly every Member of the Senate has risen to talk about the need
for job creation. I believe all of us are sincere. Each of us is
committed to acting on legislation that will create more job
opportunities for Americans. We have passed the Recovery Act and a
Small Business Jobs Act and will soon consider tax extenders that will
further help businesses invest more in jobs. Rather than abruptly
cutting off those still in difficult times because of the economy, we
should pass at least a 1-year extension of unemployment compensation
benefits. On behalf of the millions of American families who will be
affected by what we do or fail to do this week, I call upon my
colleagues, at the start of the holiday season, to recognize the needs
of families struggling to make ends meet and agree to an extension of
this essential program.
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I yield the floor.
The PRESIDING OFFICER. The Senator from California.
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