Unemployment Benefits Extended for up to 2 Years end for up to 2 Million this Week in 26 States, Including Massachusetts – the Downward Spiral

The Downward Spiral of Tax and Spend and Regulate Policies

FromYahoo Finance: the Federal government’s 73 weeks of unemployment aid to 26 of the 50 United States will end this week leaving families out in the cold. The Federal Aid to States was offered under the “Recovery Act” (otherwise known as “Stimulus Bill”), where states would be eligible for extended benefits if they “split the bill” with the Fed. Apparently 26 of the States that signed on, including Massachusetts, will drop the benefits once the Federal portion of aid ceases according to Yahoo Finance. Massachusetts, already cash strapped and bleeding taxpayers for years, so much so that they are losing a Congressional Seat in 2012, is in a tenuous position to cover any State benefits once the Fed either hits the debt ceiling and/or runs out of taxpayers as well. An interesting read on Ubran Grounds shows a direct connect between states that have a high tax rate and those taxpayers pulling up stakes and moving elsewhere.

Leading the charge in “How to Collect Unemployment in Massachusetts” is the Massachusetts AFLCIO. A “packet” of information on the Unions website (here) guides members on the ins and outs of the Massachusetts unemployment system – also worth the read.

Massachusetts residents who are left paying taxes (including those who received unemployment benefits or are receiving unemployment benefits), will, in all likelihood, face a decrease in payroll at the first of the year, due to an increase in tax rates. In the past two years, the Obama administration and both houses of Congress failed to address the Bush Tax Cuts, which are now expired. In a meeting yesterday between the President and representatives from the Republican and Democrats in both Houses resulted in a decisions to appoint “negotiators” for both sides of the aisle before voting in either house to extend the Bush Tax Cuts either in whole or in part. .

Why would the decision to put off a vote and “negotiate” a “deal” between Geithner (Obama’s choice), and Representatives of both Political Parties matter to those forced to try and find a job in any state, let alone those who are now losing extended benefits? Those tax cuts, and other factors of “economic uncertainty” for both small and large employees are forcing firms to hold back on adding jobs. It is that simple. Extend the tax cuts and revoke some of the programs instituted under the Obama administration that have hamstrung employers (article from Cato Institute reprinted from Investors Business Daily) , and the jobs reappear. As it stands now, employers have no idea of what their bottom line will be, therefore, zero hiring is the result. As the Democrats, Republicans and Obama Administration play politics, the worse off those sitting in Massachusetts (or other states) are going to be unless the job market improves.

What is suggested when looking at the human element when it comes to those who are about to face an end to unemployment compensation is to read the comments under the Yahoo article Here . Not everyone collecting unemployment compensation on extended benefits are doing so by “union guidelines”, rather, individuals who have worked their entire adults lives, first, upon losing a job, tightened belts, ran through savings, including 401k’s, and then, still unable to find employment, at a significant reduction in wages, (If, in some cases, that individual would even be considered due to being “overqualified”), in order to jump to unemployment compensation as a last resort. Not everyone who will be faced with this adversity has played the system, knowingly or with a little help from “organized labor”.

Unfortunately, those in power in the Commonwealth, and elsewhere, appear to have no inkling as to what will happen once the public through runs dry and the Fed and State revenues are depleted. SNAP (a credit card used at convenience stores, supermarkets, etc., which replaced Food Stamps) will not be sustainable at current levels (See: MA Billion Dollar 2010 Disbursements.) Additionally as Massachusetts is the 7th largest destination for those entering the country (illegally or not), those seeking entitlements might find themselves better off returning from whence they came. Those of us left behind holding a job (so far) should be kind to our neighbors, and offer assistance to local faith based groups that feed the hungry. It is the people, exceptional ordinary American Citizens, not the government who lives off the people, that will rise to the occasion.