Ed Schultz echoes every dollar spent on unemployment puts $2 into the economy VIDEO
During the “Ed Show” Ed Schultz talks about North Carolina Governor Pat McCrory’s tenure in office and then criticizes McCrory for cutting unemployment insurance. (Video below)
photo by photoSteve101 via Flickr
U.S. Labor Secretary Seth Harris released a statement late Monday saying that the federal agency doesn’t have the power to stop the Rebublican-led N.C. General Assembly from moving forward with the plan, but cautioned that families stand to be hurt by it.
Here is the statement from Harris:
“The North Carolina legislature is considering legislation that would reduce state Unemployment Insurance benefits. If enacted, the legislation also would cut off all federally funded Emergency Unemployment Compensation — that is, benefits after 26 weeks of unemployment — to 170,000 unemployed North Carolinians. This cutoff is automatic under federal law. I have no discretion to stop it. As a result, families struggling to secure their place in the middle class will suffer a grievous blow, and the state’s economy will lose $780 million in federal funds that are vital to reducing North Carolina’s high unemployment rate.”
“We know that for every dollar spent on Unemployment Insurance benefits, nearly two dollars are generated in the local economy. Unemployed workers and their families spend these benefits in local grocery stores and small businesses, and use them to stay current on mortgage or rent payments and utilities. For these reasons, UI programs are vital to economic growth in difficult times, particularly in states like North Carolina with high unemployment rates.”
Some researchers maintain that not only does increased spending on unemployment not provide minimal economic boost, but also that it may decrease output in the long run, in part because the government will have to recoup money paid out in benefits through increased taxes.
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