[Congressional Record (Bound Edition), Volume 156 (2010), Part 13]
[Senate]
[Pages 18611-18612]
[From the U.S. 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 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

[[Page 18612]]

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.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from California.

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