Now, we’re hearing, Senate Majority Leader Harry Reid has indicated that, rather than the 15-day extension being discussed yesterday, they’ll be voting on a 30-day extension. Gosh, thanks, Sen. Reid, but we’d really rather have an extension to the end of 2010. Otherwise, the Senate will be clogged up voting on this very basic, necessary issue every month or every three months, millions will continue to live in uncertainty, and the Senate will be even less likely to move forward.
So please, call Sen. Scott Brown (John Kerry, too, if you want — probably less essential). Urge him to vote for an unemployment insurance extension-and let him know that these 15- and 30-day half-measures are inadequate. As they struggle to find work in an economy in which there are 6.4 workers for every single job opening, America’s job-seekers need to know that their meager insurance against disaster is guaranteed for more than 30 days at a time.
Talking Points:
- 26 million Americans are unemployed or don’t have the full-time work they need to support their families.
- Up to 800,000 jobs will be lost nationwide if benefits are not extended through the end of 2010.
- Every $1 of unemployment insurance benefits that is spent results in $1.69 in economic stimulus in the community.
Today, unemployed workers receive 26 weeks of “regular” Massachusetts unemployment and an additional 20 weeks of “extended” unemployment benefits (for which each worker has to apply, be approved, and so on).
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p>A huge number of those who were laid off during the worst part of the initial crash (between October 2008 and October of 2009) are still unemployed. The bank executives and the banks they caused to “fail” are doing just fine — the Great Recession is over for them (for now). They all got rescued, none of them lost homes, and their counterparts in the government now trumpet the fact that the bailout funds have been repaid. Big f***ing deal.
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p>Health insurance executives and the health insurance industry is similarly doing fine.
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p>It’s the rest of us who are suffering and in deep despair.
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p>Massachusetts workers need at least another 20 weeks of extended benefits, another 52 would be even better. In addition, the federal COBRA subsidy desperately needs to be extended.
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p>For unemployed workers with families, these two benefits — unemployment and COBRA subsidy — are the difference between despair and utter ruin (as in homeless).
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p>While wealthy politicians repeat tired and false talking points and recycle meaningless campaign slogans, we are creating an army of economic refugees.
I actually have a friend for whom the COBRA subsidy was the difference between life and death. As in, it was the only reason he was able to afford health insurance at the time he was diagnosed with fairly advanced cancer.
But please don’t start with them/us and other incendiary arguments.
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p>There are plenty of businesses and markets that did just fine during that period but that doesn’t make them bad people or bad business governance. Why do people making money or profits have to be labeled “evil”. When il prices were high a few years ago we had to listen to Exxon being labeled “evil”. They made profits, quite an American tradition! They returned money to stock holders, many held by 401K mutual funds…
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p>Why do you has such vitriol for Insurance companies and their 3% profit margins?
I’m supporter of this, but just remember this raises the cost of unemployment insurance in the future. It will make it more expensive to hire employees, and therefore less employees will be hired.
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counter-cyclical.
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p>When jobs are few, spend money to stimulate the creation of more.
When jobs are plentiful, tax the system to prevent overburn (and pay for the times when jobs are few).
I have a house on the cape and the house insurance has been increasing every year. The reason often cited is the computer models which show a whopper of a hurricane is going to hit the east coast. But of course, higher rates every year and still no hurricane. So I asked the insurance agent if this money gets “banked” for the big one… he laughed. His excuse was they are underwritten by international insurance corporations and they pay high “reinsurance rates” to them. He also said they don’t work on a “pooling” of extra money for the “big one” AND that if there ever was a big one the insurance companies don’t have enough to pay out for large scale devastation.
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p>So much like housing insurance, unemployment should always have a separate bankroll of money for aberrant conditions like now and then let the fund ebb and flow with economic condition. I know it isn’t that simple but it should be.
Cheaper rates and perfect for second homes. Maybe I’ll switch this year.
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p>Is there a way of finding out how the balance sheet sheet looks for Mass FAIR plan? Without a hurricane, they must be pulling in some big cash too!
And when you consider the rates – do you have a wind decuctible that is a percentage of the value of the HOUSE? Not a dollar value, but a percentage? Because many do.
The higher unemployment taxes on employers kick in next year. I don’t see any major recovery. Major economists expect the unemployment rate to just dip slightly.
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p>The only case I could see for high unemployment taxes was during the dot.com boom and the middle of the housing boon. Bank for the bust.
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p>The high unemployment taxes also prevent the formation of entry level jobs.
We can always begin to save more in the “unemployment account” in the future. This is a rather unusual situation.
I think that people on the left are comfortable calling companies that make super-sized profits “evil” because people on the right call the chronically unemployed “lazy” or “shiftless” or those who walk away from their mortgages “irresponsible”.
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but I haven’t called people being foreclosed on as “irresponsible”.
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p>What are “super-sized” profits? Exactly?
political rhetoric, the reasons therefor, and the reasoning thereunder
If you want to make the argument that bank executives and bank senior managers have not done disproportionately well in comparison to average workers since October 2008, I’m listening. When I hear about bank and insurance executives losing homes, pulling their kids out of college, or standing in unemployment lines, then we can talk again.
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p>In general, those who started with the most have benefited the most from government-sponsored bailout and recovery plans until now.
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p>Some historians make a reasonably compelling argument that a primary accomplishment of FDR was to avoid a communist/marxist takeover (whether peaceful or violent) of the US during the Great Depression. I think a similar argument in favor of a significant extension of unemployment benefits is becoming more and more appropriate.
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p>There is growing evidence that a populist revolt is brewing. So far, it has been led and encouraged by the right. If enough people recognize the stark disparity between the very wealthy and everybody else, the distinction between left and right may (at least temporarily) shift into a rather bright line between wealthy and poor.
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p>The current extreme concentration of wealth in the topmost 0.5-1.0% of the population is not sustainably consistent with the American Democracy that we inherited.
My point was many other businesses did well all last year and that by itself doesn’t make them evil. Does it? Companies like mine had a good year and I had a great year so am I evil (trick question)?
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p>As for the “bailouts”… unless I’m mistaken, the government gave these banks loans which they repaid and paid a large interest payment. Are you suggesting a similar program for Main St… loans with high interest rates?
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p>The rich just got richer too. They smartly sold off before the fall, bought in low and have now doubled their money in 18 months. Does THAT make them evil or just opportunists?
is because their gains were predatory in nature: they were the ones giving out “liar loans” and putting extra fees on the ordinary people. When they re-structure loans for people who are struggling, they usually throw on extra fees.
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p>These “financial innovations” have done nothing to make the rest of the economy better.
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p>The question is: are they smart, or are they crooks? Or are they smart because they’re crooks? Seems fraud is an acceptable means to an end these day. At least for the chosen few.
No don’t work there either, the only banking I’m involved in is my piggy bank!
you were smart enough to sell before the last crash, and that you had reinvested and were making a killing now. My question is: how do you know when a crash is coming? If it’s that obvious, you would think all traders would be in the know. You don’t have to work there to be an insider. Seems to me you’re a pretty well connected guy JohnD.
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p>Are you a crook? Well according to you – yes, you are a crook. You cheat on taxes. You said so yourself. So if that translates to other unethical and illegal behavior I would say it makes you more likely to carry the behavior into other areas of your life.
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p>I think the blanket statement that only “crooks” did well over the last 18-24 months is just to general.
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p>When did I say I cheated on my taxes? I use every legal deduction on my taxes just like every icon you probably bow in front of (Kennedys, Patricks, Obamas…). As a matter of fact, a really “good” tax guy could probably go over my last 10 years and find lots more money that I didn’t have to pay.
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p>How did I “cheat” on my taxes.
I buy/sell used textbooks on the side out of my basement which is a giant hassle but I net another $35-45,000 a year (tax free).
I think we already had the “part of the underground economy” discussion (yard sales, Ebay…).
No matter how you try and spin it, you admit to pocketing $35-45K/year that you are not declaring or paying taxes on.
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p>That is, for example, 400% of the federal poverty level. On that undeclared income alone, you would be ineligible for the Massachusetts COBRA subsidy.
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p>My adult children, who struggle mightily to pay off student loans, and who work long hard hours for a similar amount of money, manage to pay their taxes.
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p>You have zero room to complain or gripe about corruption in government.
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p>You are a tax cheat.
JohnD has repeatedly bragged about knowingly hiring illegal immigrants because they’re cheaper:
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p>If it’s sleazy, JohnD is all over it.
Helps people pay off the incredibly high taxes we pay (at least that I do). I think you should raise this issue on Beacon Hill. Tell them you want to enforce citizens to declare all revenue from yard sales, Ebay sales… and all unreported income. Go for it!
if you turn your way back machine to the Duke Administration, the DOR did go after yards sales, until the state house created an exemption.
Especially if you’re running an eBay business making $34-45k per year.
I’m not sure how many years you’ve been stealing money from struggling young people like my daughter, but I think you should pay it all back before you offer a peep of guidance about what anybody else should do.
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p>You write: “I think you should raise this issue on Beacon Hill.”
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p>I must say that I’m sorely tempted to do just that — five years of illegally unreported income on your part sounds like about $200K. That sounds like about $60K in unpaid federal and state taxes. I have friends losing houses and children loosing sleep over similar amounts.
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p>I think you ought to be prosecuted, sir.
You’ll find the reception similar to what the State House did with yard sales… drop it.
There’s a huge difference between a $35-45k/year BUSINESS and a yard sale.
eventually ebay will report directly to the state and the fed’s. This will happen sooner rather than later.
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When somebody robs a bank, claiming that “all bank robbers must be caught” is unlikely to sway either the prosecutor or the jury.
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p>Sorry, John, but you are a self-proclaimed tax cheat and in my opinion you should be prosecuted for it.
$350 in sales at a tag sale is something entirely different from your rather successful small business on ebay.
You both knowingly commit ethics violations:
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p>Of course, your violation is also illegal, but what’s a little hypocrisy amongst friends?
in the financial crisis and the downturn. There’s something of a difference between having a problem with industries that happened to do well in a recession and having a problem with industries that contribute to a recession, are bailed out by taxpayer money, and continue to fight regulation and pay unthinkably huge bonuses to the executives who caused — or at least should have stopped — the risky behaviors.
To blast Senator Kerry when he’s too busy with himself to vote for it. As in 2004.
Is on my top 5 list of things that President Obama has pushed through since he was elected. Its impact on the well being of the folks that have taken advantage of it is truly incredible.
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p>My wife’s unemployment expires in April…I’m optimistic for an extension….I have no idea why Reid stripped it from the bill that came from Senate Finance…
Massachusetts also has an subsidy for health insurance for the unemployed.
There are income limits on that Massachusetts health plan for people receiving unemployment benefits. The Federal COBRA benefit is incredibly important to many middle class folks who find themselves on the unemployment rolls.
The Massachusetts plan is limited to those with incomes below 400% of the federal poverty level. I think that translates to about $40K/year for 2009 (I don’t think the 2010 numbers are published yet).
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p>That, in turn, is about $833/week.
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p>What I can’t tell is whether this limit applies to income while receiving unemployment compensation or instead to whatever “base income” the unemployment compensation is based on.
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p>If it is the former, then most people who collect unemployment will qualify.
I think they calculate it by taking a 6-month look back at your income, and then computing 6 months income from unemployment. So it’s a split decision.
they should fix the system. Small businesses actually extend credit to the federal government which then reimburses (not immediately ) them for the Cobra premiums. These premiums are not trivial. If you operate on a line of credit you paying interest to act as a lender to the federal government.
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I was under the impression that the Democratic Party was the one that is not hostile to small business.
Yes, but the credit is really short-lived. Don’t you take credits off your federal payroll taxes, which you pay every month?
if could be a loan the length of the Cobra extension.
Millions of Unemployed face Years without Jobs per the New York Times.
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p>Welfare was cut, based on jobs being available that were oursourced or no longer exist.
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p>I created my own small business and work long hours, doing work I care deeply about. I know, though, that the ability, drive, and training or experience to do this is not something everyone can do. None the less, my unemployed clients who flyer neighborhoods to create landscaping businesses, or clean houses do get work, and are doing better than those seeking jobs.
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p>But can we feed and house 30 million long term unemployed without major social dislocations or changes in policies?
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p>I consider that this situation is an argument for using accumulated capitol to create local jobs. Otherwise the super wealthy are more or less like greedy dragons crouching over their hordes, and doing no good with their wealth for anyone.
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p>There are too many vacant store fronts in just my town – but I cannot think of another store we need or that our town would support. THAT is a problem.
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For me, this was the money bit:
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p>Wrote about it here.
Nine Chinese engineers for the job I used to have.