This article from Reuters website reports how the effort to extend unemployment benefits for long term unemployed has been blocked by Republicans in the House of Representatives. Was the cost to high and what does this mean for the economy?
Democrats brought up the measure under special rules that require a two-thirds majority for passage. But they failed to win sufficient support from Republicans, who expressed concern about the measure’s $33 billion cost to the federal treasury.
The bill would help as many as 1.7 million people whose unemployment insurance benefits have run out. It would extend an emergency unemployment compensation program through November 30.
Democrats said the spending was justified to help the unemployed pay their bills and to boost the economy.
“When you provide unemployment insurance to people, they spend it,” House Ways and Means Committee Chairman Sander Levin said. “If Republicans are worried about growth and consumer demand, they should work to put money in the pockets of people who are desperate, who are out of work, who are looking for work.”
The U.S. unemployment rate, currently 9.7 percent, has remained stubbornly high even as the economy has begun to recover from deep recession sparked by the financial crisis.
The government is due on Friday to report the jobless rate for June. Analysts are expecting a slight increase due to temporary U.S. government census workers being laid off.
