When initially discussed as a rude repercussion of a bungled budget deal, the prospect that 1.3 million Americans would lose long-term unemployment benefits just days after Christmas was bad enough.
Now that the day has come, however, it stands as a stark reminder of the extent to which the United States has regressed from the days when Franklin Delano Roosevelt greeted the holiday season with a celebration of the fact that “today neighborliness no longer can be confined to one’s little neighborhood. Life has become too complex for that. In our country neighborliness has gradually spread its boundaries—from town, to county, to State and now at last to the whole Nation.”
Imagine a country that during the week between Christmas and New Year’s Day abandons those hit hardest by economic turbulence, and you have a sense of what the United States has become under the cruel hand of House Budget Committee chairman Paul Ryan—who refused to agree to any budget deal that included an extension of benefits—and those members of Congress, Republicans and Democrats, who compromised with the failed Republican vice presidential candidate’s austerity agenda.
Because Congress accepted Ryan’s crude calculus, 1.3 million jobless Americans were abandoned on December 28 by a government that could, and should, have assisted them. And if Ryan continues to get his way, unemployment benefits will end in coming months for an additional 1.9 million Americans.
“It is not only immoral to cut off help for workers struggling to find jobs, it is also bad economics,” argues Vermont Senator Bernie Sanders. “At a time when long-term unemployment is near a record level, cutting benefits will hurt the rest of the economy and cause even more jobs to disappear.”
Ryan claimed that extending jobless benefits “would have blown a hole in our deficits” and “prolonged unemployment.”
He is off the mark, morally and economically.
Sanders correctly points out that there is no sound economic argument for adopting the Ryan approach. A continuing refusal by Congress to extend benefits has the potential, according to the nonpartisan Congressional Budget Office, to cause a $25 billion blow to the economy in 2014. The CBO projects a 0.2 percent drop in the nation’s gross domestic product—and the loss of 200,000 additional jobs—unless the benefits are extended.