Posted by AzBlueMeanie:
Arizona's Senator Obstruction, Jon Kyl, tied up the unemployment benefits extension bill in the U.S. Senate for weeks based upon petty partisanship and parliamentary maneuvering.
The bill bogged down in the Senate, first when senators from states with lower jobless rates demanded that the extension apply to all people exhausting their benefits, then with negotiations over adding the homebuyer and business tax credits. Then, Republicans held up floor action when Democrats blocked them from offering amendments on matters unrelated to the base bill.
"Opponents have put up obstacles at every turn to delay the passage of this bill, and as a result of these delaying tactics approximately 200,000 workers have lost their benefits in this last month," said Sen. Jeanne Shaheen, D-N.H., a chief proponent of the more expansive benefit extension.
Judy Conti of the National Employment Law Project said it was "shameful" that the Senate procrastinated while an estimated 1.3 million face a loss of benefits by the end of the year. "We are in the middle of a national catastrophe as far as unemployment is concerned," she said. "This bill would provide a lifeline for those who are desperate, who are unemployed for no fault of their own."
Senator Obstruction finally relented on Thursday, and the bill was unanimously approved by the Senate 98-0. Senate acts to extend aid for jobless, homebuyers
With enactment, the jobless in the hardest-hit states could receive up to 99 weeks of benefits, which average about $300 a week. That would well exceed the previous record of 65 weeks during the 1970s.
The $8,000 tax credit for first-time homebuyers, enacted as part of the stimulus package last February and set to expire this month, would be extended and expanded to include a $6,500 credit for people who have lived in their current residences at least five years.
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The legislation would extend the $8,000 tax credit through June of next year as long as the buyer enters into a binding contract before April 30. It doubles the income ceiling for qualification to $125,000 for individuals. The credit is available for homes purchased at under $800,000.
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The third leg of the bill extends to all businesses that have incurred losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.
The two tax credits, each costing more than $10 billion over 10 years, are paid for by delaying enactment of a law giving international companies more leeway in how they allocate interest expenses between U.S. and foreign sources in determining tax liabilities.
The House moved quickly to approve the bill and voted overwhelmingly in favor of the bill on a vote of 403-12. House votes to extend jobless benefits, expand home buyers' tax credit President Obama will sign the bill.
Three of those 12 "no" votes were Arizona GOP congressmen John Shadegg, Trent Franks and Jeff Flake. The three stooges continue to embarrass and dishonor the citizens of Arizona. It is past time to put them on the unemployment line.
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I do not believe government should be spending money priming the pump as government (central planning) cannot know what the “correct” level for the economy is.
I don’t prefer 25% unemployment and the rest but I don’t think that “it could be worse” is a valid reason to think that either the stimulus worked (some) or that more government spending is going to work.
Advocates of priming the pump are going to always claim that another bigger stimulus is the solution to any current economic problem but that road is sure to result in an economic implosion.
I have never claimed that there hasn’t been government intervention in the economy. The real question should be how much is needed and at what point is government involvement damaging.
My belief is that unwarranted and risky borrowing aided by inflated credit by the Federal Reserve caused this problem and the Federal Reserve needs to be audited and reigned in as well as the hand maidens of the credit bubble Goldman Sachs, Fannie Mae, Freddie Mac and the rest of the banks.
A US gold standard would have never resulted in the overinflated economy.
Is there an agreed upon abmount of government spending divided by GDP that the government should not exceed?
In a depression governments borrow money and engage in deficit spending for two reasons: (1) to halt the economy from declining any further and (2) to prime the pump of spending that will generate business activity and eventually the hiring of employees. Part 1 is showing some signs of success. Part 2 is going to take longer and will require more stimulus spending. Yes that means more borrowing and deficit spending. We are nowhere near historical highs for government spending as measured by percentage of GDP, and we have always survived before.
Perhaps you would prefer 25%+ unemployment, massive foreclosures and business failures, a collapsed financial system, and an economic depression lasting a decade or more, but most Americans do not share your ideological view.
The belief in the mystical magical hand of the free market correcting itself is a myth that has never been true in economic reality. It is the equivalent of believing in the Easter Bunny and the Tooth Fairy (sorry kids). There has always been government intervention in the economy.
The federal government is proposing to fund thousands of unemployment checks with money it doesn’t have. In a world where people recognize that programs cost money and that the federal government is long past having any they would ask what pot of gold is the federal government planning to use to pay for this program?
Perhaps Kirkpatrick, Grijalva, Mitchell, Pastor and Giffords could propose selling of the US government gold stock to pay for programs like this.