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One Telephone Call
November 13, 2008
“By making just one telephone call, the President could
single-handedly jump start the U.S. economy and throw economic lifelines to
millions of unemployed Americans,” Rep. Jim McDermott,
chairman of the Income Security and Family Support Subcommittee, which oversees
the nation’s unemployment insurance system, said today. He made the comment following release of
troubling new data that shows a surge in unemployment filings to levels not
seen since the aftermath of 9/11.
Rep. McDermott explained that his legislation, H.R. 6867, to
extend unemployment benefits passed the House in early October on a massive
bi-partisan vote of 368-28, but the legislation stalled when Senate
Republicans, after consultation with the President, would not permit the
legislation to come to the floor for a vote.
The bill would extend benefits a minimum of seven weeks in every state,
but 13 weeks in states where the unemployment rate has averaged 6 percent or higher
over three months.
“When 85 percent of the House of Representatives vote in
favor of anything, which was the case with my bill to extend unemployment
benefits, that is a dramatic expression of strong support across party lines,
state lines, and unemployment lines,” McDermott said. “The House demonstrated the will to act and
the President can show the way by making one telephone call to the Senate
Republican leader to support the immediate passage of legislation to extend UI
benefits.”
McDermott noted that Members of Congress will be in Washington, D.C.
next week and the Senate could quickly pass his UI bill and the President could
sign this economic lifeline legislation ahead of the Thanksgiving holiday.
He added that the money to pay for extended unemployment
benefits is in a federal trust fund right now and it is meant to be used in a
time like this. The money is collected
from every employer based on the number of employees.
Furthermore, independent studies show that an unemployment
insurance benefit is money that is almost immediately re-injected directly into
the economy to pay for food, housing and other family expenses. This legislation would provide approximately
$6 billion in additional UI benefits and economists conclude that every dollar yields
approximately $1.64 in economic impact as the money ripples through the economy
and helps to sustain other jobs and restore consumer confidence.
McDermott pointed to a quote by Mark Zandi at Moody’s
Economy.com made earlier this year:
“The benefit of extending unemployment insurance goes beyond
simply providing financial aid for the jobless, to more broadly shoring up household
confidence. Nothing is more psychologically debilitating, even to those still
employed, than watching unemployed friends and relatives lose benefits. The
slump in consumer confidence in late 1991, after the 1990-91 recession, may
very well have been due in part to the first Bush administration’s initial
opposition to extending UI benefits for hundreds of thousands of workers.”
Rep. McDermott concluded: “We are in the midst of an
economic emergency. One telephone call
by the President is all it would take to make a dramatic and immediate
difference in the lives of ordinary Americans.”
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