Creating an Automatic Unemployment Insurance Extension System

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Thursday, July 29, 2010 at 11:40 am

Over at The National Review, Josh Barro has a good blog post on extending the unemployment insurance system during sustained periods of high joblessness.

I am inclined to favor further extension of UI benefits while the job market remains so weak. I am not concerned that this leads us down a slippery slope to permanent, indefinite unemployment benefits (which historically have been one of the drivers of high structural employment in continental Europe) as the United States has gone through many cycles of extending unemployment benefits in recession and then paring them back when the economy improves, under both Republican and Democratic leadership.But we could eliminate these fears by making UI adjustment an automatic, rather than political, process. I haven’t seen any specific formulas proposed (if a reform is on the table, readers, please alert me) but in general UI should be extended when unemployment is high and/or rising, and contracted when it is low and/or falling. A formulaic adjustment program could mimic what Congress habitually does already, but without generating market uncertainty — or incurring risk that Congress will be too timid to pull the trigger on abbreviating UI benefits in recovery.

This is a great idea, and one that I know Democratic and Republican staffers both would love to put in place — if for no other reason than because the jobs bill and benefits extensions have taken up hundreds of hours of negotiating time and scores of hours of Senate and House floor time.

The question, I think, might be the funding mechanism. The eight-month fight for unemployment benefits has centered on the question of how to pay for the benefits, or whether to pay for them — not whether to extend them.

There is already some precedent in place. Generally, Congress has started to roll back federal unemployment benefits when the national unemployment rate drops below 7 or 6.5 percent — a line that might demarcate whether unemployment extensions should count as “emergency spending” or need to fall under paygo rules. One could imagine a good bill stating that extended unemployment benefits do not need offsets if unemployment is over 8 percent, need partial offsets between 6 and 8 percent, and need full offsets below 6 percent. But the fight over those lines in the sand, I think, might be tremendous and even prohibitive.

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19 Comments

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arthurhoward
Comment posted July 29, 2010 @ 6:52 pm

Good idea but much too logical and progressive for this country or congress!


Ckevans12
Comment posted July 29, 2010 @ 6:53 pm

Hello, I am one of the long term unemployed and I expected to receive retroactive benefits due to the signing of the extension last week. My state employment office told me today that I have exhausted all of my benefits, but i have not reached 99 weeks. I do not understand. Does the length of time for benefits vary from state to state? I thought the emergency extension increased all the states benefits to 99 weeks. I live in mississippi and I need those benefits very badly in order to pay my bills. Can someone please explain why I am being denied benefits. Thanks


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MMT
Comment posted July 29, 2010 @ 11:56 pm

If you have exhausted Tier 4 there is nothing more. Not all states have 99 weeks


Joshua J. Israel
Comment posted July 30, 2010 @ 2:30 am

I have tried to give assistance to an organization who is trying to help-out the approval of unemployment benefits, however, I don't even know if they will use it, so I will copy this letter “HERE” so that We-The-People can take action. >>>> >>>>>>
Attention N.E.L.P.: (National Employment Law Project)
I have studied your website, and I have studied your posted information on Unemployment Benefit Matters, and so far I cannot find any reason why you would refuse assistance to myself. So, I will give basic information to you, and I will hope that you can see that a corrupt practice of government hatred and abuse, has made a mockery of the Congressional BENEFITS and Constitutional guarantees afforded to citizens of the USA.
——————————————-
Attached herewith are URL links to Google Documents, these documents demonstrate that administrative agencies like the EEOC, the U.S. DOL, and the Dept. of Human Rights are refusing to enforce civil rights laws, by a lawless means, so as to award myself just compensation for discriminatory actions, so as to award back pay for wrongful discharge; and, so as to become reinstated in employment again. In addition, by depriving myself of the equal protection of due process, these agencies have destroyed my career and livelihood, and now they are the threat that endangers my life, without due process, because they have denied all due process and and all equal protection that the constitution guarantees to USA Citizens, before any deprivation can occur.
————————————
Now, to make these matters worse, I have written letters to my Senators; however, these Senators have turned a blind eye, and have allowed this tyranny to take place. So if you will, please take a look at the URL links, and please respond, because this is how the government creates crime in the “Black” community, and this is how judges and government officials turn “Law-Abiding” black citizens into criminals, by their stategic use of INJUSTICE. These State Officials and Judges use INJUSTICE, like a tool, to take away Liberty and Property and Employment, from “Black” people, and to take away the right of “Black” people to relief from wrongs and injury sustained (resulting from Criminal acts), as a result of Workplace Bullying and Race Hate Discrimination, and as a result of threats, intimidation, offensive physical contact, and coercion and extortion, in places of employment. As a result, I collect UNEMPLOYMENT because the Executive and Judicial branch of government has failed me, and said officials and judges are in violation of every aspect of due process of law, and the equal protection of due process, and to demonstrate, the following URL links will set forth these facts:
——————————-
These three letters sent to Al Franken demonstrate my attempts to seek his assistance, and to advise him of the magnatude of disparity and discrimination against myself >>>
http://docs.google.com/fileview?id=0B-CjH4Ucgwu…
———————————–
http://docs.google.com/Doc?docid=0AeCjH4UcgwuWZ…
—————————
This is a letter sent to Secretary of Labor, Hilda L. Solis, demonstrating the magnatude of discrmination, criminality, and extortion committed against myself, in seeking Motor Carrier Protections >>>
http://docs.google.com/fileview?id=0B-CjH4Ucgwu…
——————–
This is my response to Senator, Amy Klobuchar's, request for a Release of my Private Information, and for her assistance, against a Judicial violation of Congressional Entitlements and the procedure to be followed that protects Congressional Entitlements; and, against the unconscionable schemes and the lawless judgments that are in contempt of Congress; however, what has the Senator Klobuchar done,… NOTHING,… not even an acknowledgment that she received my Release of Information Form >>>
http://docs.google.com/fileview?id=0B-CjH4Ucgwu…
—————–
As you can see, every factor of government is a TYRANNY of HATRED against me, I am forced to collect UNEMPLOYMENT because the law and it's functions are violating my constitutional rights, and I would appreciate it if you would ask them WHY-! If they have a legitimate reason, I am entitled to know that legitimate reason. And, if you cannot be of any assistance, I would appreciate your response saying so.
Joshua,


Matthew Yglesias » Improving UI With Lump Sum Payments
Pingback posted July 30, 2010 @ 8:33 am

[...] Annie Lowrey and Even The Conservative Josh Barro argue in favor of reforming the Unemployment Insurance system so as to make extended benefits eligibility automatic in times of economic depression. Barro: I haven’t seen any specific formulas proposed (if a reform is on the table, readers, please alert me) but in general UI should be extended when unemployment is high and/or rising, and contracted when it is low and/or falling. A formulaic adjustment program could mimic what Congress habitually does already, but without generating market uncertainty — or incurring risk that Congress will be too timid to pull the trigger on abbreviating UI benefits in recovery. [...]


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This is a great idea, and one that I know Democratic and Republican staffers both would love to put in place


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