[Congressional Record (Bound Edition), Volume 154 (2008), Part 18]
[Senate]
[Pages 24287-24289]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    EXTENDING UNEMPLOYMENT INSURANCE

  Mr. REED. Mr. President, I rise in support of extending unemployment 
insurance to help the 10 million jobless Americans, the most in a 
quarter century, who are searching for work.
  In the wake of the subprime mortgage crisis, turmoil on Wall Street, 
and decline in consumer spending, workers throughout this country are 
being given pink slips by the thousands. In fact, we are seeing record 
numbers today, further amplifying the depth and the seriousness of this 
employment crisis in the United States. The situation continues to 
worsen. This does not appear to be a passing trend, but, unfortunately, 
unless we do something quickly and appropriately, we can anticipate 
continuing job losses. We have already seen across the country 
individuals whom we know--family members, cousins, friends--who, one, 
are either losing their job, or, two, are being very concerned that 
their employment status is tenuous and at any moment they could be 
given the word that they have lost their job. Over the course of 1 
month, national job loss numbers jumped from 6.1 percent to 6.5 
percent--an extraordinary jump in 1 month. Updated State numbers, which 
will be released on Friday, will unfortunately likely continue to 
reflect this deterioration in our job markets.
  Despite this bad news, a resolution of this employment crisis does 
not seem to be approaching. As I suggested, there are indications this 
will get worse before it gets better--another reason to act now to try 
to provide support and assistance to those people who have worked and 
now find themselves without a job, through no fault of their own.
  In my home State of Rhode Island, these national trends are amplified 
dramatically. Nearly 9 percent of Rhode Islanders are now unemployed. 
That is 50,200 people. We are a small State with a relatively small 
population. Mr. President, 50,200 people are without work. They are 
searching for work. They are searching for answers. They are searching 
for help. We have to provide the help, and then the long-term answers.
  Job losses in Rhode Island are occurring in all sectors. This is not 
just one area of economic endeavor that is under stress. Every area is 
under stress. Workers in manufacturing plants have been particularly 
hurt, and that is another consequence or another aspect of this 
discussion of the support for the auto industry. We have thousands of 
jobs in Rhode Island that in some way depend upon the auto industry. So 
their fate is linked to what we do effectively, constructively to 
assist these companies to maintain their presence, but also to change 
their practices so they are not only here for a few more months, but 
they can evolve into a sustainable manufacturing industry that will 
lead the world, as it once did, in the manufacture of high-quality, 
economically, and environmentally sound vehicles.

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  We are seeing layoff notices in the financial and services industries 
despite all the efforts we have made to support these industries 
through the legislation we passed last September. These losses are from 
small mom-and-pop manufacturing shops in Rhode Island and go up into 
national financial companies that are shedding workers.
  This is a problem that must be addressed. We have done it in the 
past. In 1991 and 2002, Congress worked with the White House to 
successfully extend temporary benefits when unemployment rates were 
significantly high. In June, I was pleased that Congress came together 
and passed a 13-week emergency extension of unemployment insurance for 
all States. This was an important step to help desperate families make 
ends meet. But jobs are becoming scarcer. The action we took in June 
has actually been overtaken by events in the world marketplace.
  We have to deal with this issue, particularly in those States such as 
Rhode Island that are seeing unusually high unemployment rates. So far, 
4,416 Rhode Islanders have already exhausted their federal benefits. 
They are still searching for work, unsuccessfully, but now they have 
lost the support of unemployment insurance.
  There are 20,000 Rhode Islanders who are receiving unemployment 
insurance benefits. In the first week of November, another 1,347 Rhode 
Islanders were added to our State's unemployment rolls. These are very 
dispiriting numbers. They call for action, and I hope we can act.
  Nationally, it is estimated that nearly 1.2 million Americans will 
exhaust their current benefits by the end of the year. Where do they 
go? They have no direct financial support through the unemployment 
compensation program. They have seen the value of their homes whittle 
down to, in some cases, less than the mortgage they owe. They are 
seeing pressures in every area. Unless we provide them some assistance, 
their ability to simply keep their heads above water--to keep their 
families fed, to keep a bit of hope alive--will be extinguished. We 
cannot let that happen.
  These benefits are not handouts. These people have worked. They have 
paid into the program. They receive a modest weekly benefit to keep 
them close to making ends meet.
  There is something else too. We have a task before us not simply to 
deal individually with men and women who have worked hard and now--
through no fault of their own, through the action of the huge economic 
forces worldwide--find themselves without jobs. We have to get this 
country moving again. We have to stimulate the economy.
  Unemployment insurance helps do that. These benefits are spent right 
away in the local communities. These benefits are going to people who 
are not going to, unfortunately, be able to put it away for a rainy 
day. Today is their rainy day. They are going to have to go to the 
supermarket. They are going to have to go to the pharmacy. They are 
going to have to go put some gas in their automobiles to get around, to 
get their families around. This money is spent almost immediately on 
food, medicine, and gasoline. Economists of virtually every stripe 
believe this is one of the most effective ways to stimulate the 
economy, to increase consumer demand.
  This is something we have to do. It generates approximately $1.64 in 
gross domestic product per $1 spent. So for every dollar of 
unemployment compensation benefits, we are generating additional 
support.
  In September, I introduced bipartisan legislation to provide an 
additional 7 weeks of unemployment insurance to people who have 
exhausted their benefits, and 13 more weeks of benefits to unemployed 
workers in States such as Rhode Island that have unemployment rates 
above 6 percent.
  Despite the urgent need for these extra benefits, a minority of 
Senators prevented this bill from moving forward. What we have seen 
since that date is not an improvement in the situation but a 
significant deterioration in the situation. We can no longer ignore 
acting on this critical issue.
  Today there are more disturbing numbers. There is an indication also 
in the press that President Bush would sign a bill, but he cannot sign 
a bill unless we pass a bill. We have the opportunity to do that before 
we leave today. Since the economy continues to unravel, we cannot sit 
back and wait. We have to act.
  In October, the House overwhelmingly passed a measure virtually 
identical to my legislation. We must do the same. I hope we take this 
action this week. We cannot wait until January. There will be more 
people without jobs, unfortunately, by January, and those who are 
having the opportunity to collect benefits bill exhaust those benefits 
by January. We have to act.
  We have to do more than just an unemployment insurance program. We 
have to focus on other forms of relief that will provide not only help 
to Americans but stimulate our economy, such as funding for food stamps 
and food banks. Families are turning more to these institutions every 
day. It is not just the marginal American, someone who might be on the 
street struggling with mental health issues, who needs the assistance 
of those institutions. More and more families--working families--are 
coming to food banks and asking for a handout, for food, to feed their 
children.
  We can do better, and we must do better.
  We also have to make investments to improve job creation and provide 
long-term benefits. I think this means investing in our infrastructure, 
putting people to work, putting people to work to rebuild this country, 
not in a transient, temporary fashion but in projects that will last 
beyond this economic crisis.
  When I was a child in Rhode Island, walking around on the sidewalks, 
looking down, I would ask my mom and dad: What is this plaque: ``WPA''? 
Well, it is the Work Projects Administration. That was from 1935, 1934. 
Well, in 1955, in 1958, in 1968, and, indeed, in 1998, and now in 2008, 
walk around, look at those facilities, those public infrastructures 
that are still serving the communities. They were investments to help 
people work, but investments that have spurred this economy for more 
than 60 years.
  We have to do a lot, and we can do a lot. There are so many needs 
here: aging infrastructure, roads, bridges, public transportation 
systems, transit systems so people can get to work and get to school, 
drinking water systems and wastewater systems.
  In Rhode Island, proposed funding for these initiatives would support 
$50 million for road improvements. Some of the discussions we have had 
about a package--$50 million for road improvements. It would also 
support $14 million for transit operations which would assure transit 
operations for particularly the poorest citizens of Rhode Island. It 
would also support $19.1 million for water infrastructure projects.
  Across this country, these projects could generate more than 470,000 
jobs. We are losing about 500,000 jobs, it seems, every reporting 
period. If we could reverse that and report an increase in jobs, that 
would not only put a lot of money into people's pockets and families' 
pockets, but it would also send a signal to the country that confidence 
can be restored, that hope can indeed be engendered.
  Finally, I believe we need to provide some funding for the States and 
communities that are strapped by this crisis. We are looking at severe 
deficits. States are looking at them. Many States do not have the 
ability to operate beyond a balanced budget. They are going to have to 
make excruciatingly difficult cuts. I think we should put more money 
into our matching Federal Medicaid programs which will help States and 
help people receive health care. These investments, again, are not only 
compelling because of the needs of our fellow Americans, but justified 
because of their ability to stimulate the economy and to pick us up and 
move us forward.
  Events over the last several months have dramatically highlighted the 
economic challenges we face. We are grappling with the most severe 
economic downturn we have seen perhaps since post-World War II and 
perhaps since the Great Depression--the worst set of

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economic circumstances. We must do something. To sit back and watch 
Americans continue to lose hope, to lose their jobs, to lose their 
sense of the potential of this country is unacceptable. We need swift 
action. No more debate; we need to vote. We need to pass an 
unemployment compensation extension bill before we leave today.
  Mr. President, I yield the floor.

                          ____________________