Monday, July 5, 2010

Economy, Employment and Extended Benefits

Dear Friends,

As I am sure you all know, the United States Senate went on yet another break without passing the bill extending unemployment benefits for the more than 1.2 million people whose benefits have run out.  The Senate will not have another chance to pass this bill until July 12.  By that time the number of people whose benefits will have run out will be even higher. 

Paul Krugman wrote a great column in The New York Times this morning entitled "Punishing the Jobless" (here).  Mr. Krugman argues that the bill has been held up by "a coalition of the heartless, the clueless and the confused".  The heartless are the Republicans who will oppose anything that President Obama is in favor of and whose chances of retaking control of Congress are greatly increased if the economy remains sluggish and the jobless rate high.  The clueless are people like Sharon Angle the Republican/Tea Party candidate trying to unseat Senator Reid who believes,
You can make more money on unemployment than you can going down and getting one of those jobs that is an honest job but it doesn’t pay as much. We’ve put in so much entitlement into our government that we really have spoiled our citizenry.
Then there are those that are confused and believe what Sharon Angle says.

But the critical part of Mr. Krugman's article is that jobless benefits are the most effective and fastest form of economic stimulus.  There can be no debate about that fact.  The Republicans and some Democrats use a concern about the deficit to argue against extending the benefits.  As Mr. Krugman points out, now is not the time to stop stimulating the economy to protect against a very small rise in the deficit.  We will need to address the deficit but right now we need to stimulate the economy.

The Republicans are using the filibuster to require 60 votes to pass this bill (and virtually every other bill).  In the last attempt, the two Republican Senators from Maine voted for cloture so that the vote could proceed and but for Senator Ben Nelson's (D-NE) negative vote, the bill would have passed.  Why would any Senate Democrat vote with the Republicans on this issue?  It is hard to say.  Here is Senator Nelson's statement after he voted to extend unemployment benefits in November 2008.  Here is Senator Nelson's statement about why is voting against this extension.  It is hard to discern exactly what he is saying but if I had to bet, he wants some special deal for Nebraska.  Based on his performance with the health care reform legislation, it is clear he loves special deals for Nebraska.

So a Senate Democrat is blocking an essential piece of legislation that is supported by his party at a time when his party controls the White House and both houses of Congress.  The Republicans would never allow this to happen, so why are President Obama and the Senate leadership permitting this to happen.  Senator Nelson needs to get in line or face a challenge from a candidate backed by the President and all the resources the Democrats can muster.

Thanks for reading and please comment,
The Unabashed Liberal

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