While much attention was focused in the past week on the inaction of Congress to deal with unemployment extension and Tier 5 legislation in the recently ended and abbreviated session, not much media attention was paid to the refusal of the U.S. Congress to continue programs which actually created tens of thousands of jobs nationwide. These programs were funded through the American Recovery and Reconstruction Act of 2009 (more commonly called “the stimulus act”) subsidized entry-level jobs in the private, public and non-profit sectors and provided employment to approximately 235,000 individuals nationwide. The funding for these job creation programs – approximately $5 billion of the $814 billion stimulus package – expired on September 30 as Republican members of both the Senate and the House of Representatives blocked efforts to continue funding.
These programs were designed to help people get off unemployment benefits and become employed. There were three programs designed to provide employment for young adults, single patents with children, and unemployed workers over 55. Typically, the individual would work at either a non-profit organization or a small business. These programs provided a subsidy or reimbursement to the organizations hiring these people. For example, libraries would be able to conduct GED and literacy programs which were threatened with elimination by hiring unemployed individuals at about $10 per hour to continue the program. The individuals employed on this program would pay income tax on their earnings, get good job experience, and continue to be able to support themselves and their families without resorting to unemployment insurance benefits or welfare.
For months, Democrats in the Senate and the House of Representatives struggled to get support to continue the funding for these programs beyond the September 30 cut off date, however strong opposition by the Republicans in both Houses forced the Democratic Leadership to conclude that any effort to move this to a vote would fail and thus the funding for these programs ended.
Senator Dick Durbin (D, IL), Deputy Majority Leader in the U.S. Senate had been attempting to get support from at least some Republicans in the Senate for months but was unable to do so. Representative Eric Cantor (R. VA) Deputy Republican Leader in the House of Representatives was a very vocal critic of these programs calling them “disguised welfare” and “unwarranted subsidies.” Supporters of the program pointed out that it was misleading to call these programs “disguised welfare” because those employed via the program paid income tax on their earnings, while welfare payments are untaxed.
Many Governors called for the program to be continued recognizing that failure to do so will cause even more job losses in their states and add to unemployment. In a few states, Governors have managed to put these programs on “life support” continuing them for a short term in hopes that Congress will reinstate funding when it returns in mid-November after the midterms. For example, in Illinois, Democratic Governor Pat Quinn was able to arrange funding for two more months, saving about 31,000 jobs in Illinois alone. However this is only for 60 days, and unless Congress acts those jobs will end on December 1. Illinois is a rare example, however as state budgets are already stretched thin and many states simply do not have the money to continue these programs even for a few months.
A public library system in New Hampshire is a more typical example. In the past 18 months the GED and literacy program run by this library for local residents was almost entirely staffed with workers who were employed with stimulus act funds. A senior staff member of this library system, who spoke to this writer on background, as he had not been authorized to issue statements to the media, said, “It does not make sense. We had seven people all over 55 with considerable experience. We were able to use the skills of these people for our education programs. They benefited, the participants in these education programs benefited and the community benefited. Without these seven people we are probably going to have to end most of our education programs. We told all seven that September 30 was their last day with us and it is simply incomprehensible to me that the Congress would not continue this program.”
Laurence Summers, Director of the President’s Economic Council (who is soon scheduled to leave the post and return to teaching) said in a statement on Thursday, “Failure to continue these programs will put hundreds of thousands of jobs in jeopardy and in the end will probably cost the government more money in additional public assistance then would have been spent in continuation of these programs.”
A senior staffer of the Senate Democratic leadership said on Friday, “Really, the issue is not about these program, or about the good they do and the harm that will be caused by not continuing them,” he said. “The reason for the Republican opposition to these programs is that they were proposed by the Democrats. Right not the Republicans are simply opposed to anything offered by the Democrats no matter how good the program may be.”
These programs were never intended to be permanent of course. They were designed to be in place only until the economy improved. Administration officials now admit that they did not completely understand the true depth of the Great Recession and the effects on employment when they designed the stimulus program about 20 months ago. The anticipated recovery has not occurred yet these programs are ending nonetheless.
These programs are one of the first financed by the stimulus act to end. They are not the last, however, as the funding of many programs financed by the stimulus act will end in the next 90 days. Some estimates put the total number of public and private sector jobs that will be lost by the end of the year as stimulus act funding ends as high as 580,000. If these estimates hold true, that would just about erase what private sector unemployment has been created since January of this year.
It’s unclear if the Democratic leadership will renew a push to reinstate these programs when the U.S. Congress returns in mid November. This is only one of the programs that will be waiting for Congressional action during the “lame duck session” currently scheduled to begin on November 15. Millions are currently receiving unemployment benefit payments under federal extension are wondering if the Congress will renew these extensions that are due to expire on November 30. Millions more American workers who lost their job through no fault of their own but who have been unable to find work and have exhausted their available benefits are hoping that the Congress will also create a Tier 5 of federal extensions. Although the final results of all of these legislative initiatives is far from certain, when Congress returns many expect enormous pressure will be on the members of the Senate and the House – of both parties – to continue the federal unemployment extension and create a Tier 5 and reauthorize funding for job creation programs as the nation claws its way out of the Great Recession.
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Neither Dems nor Reps have a hint as to what the long term unemployed are going through, nor would they care!!!
Once the Dems are voted in they will create a Tier 5 but cannot do so before the elections.
It’s the good cop (Democrats) bad cop (Republicans)routine….
They want to let the tax cuts expire and do nothing on unemployment, because the country is broke.
So what better way, then to orchestrate a little conflict and in the end nothing gets done (which is the whole point anyway)
Actually, I dont really believe this…
But I DO BELIEVE THEY WILL NEVER INSTITUTE A TIER V.
I hate to say it, but a tier V is not going to happen.
After a bunch of wrangling they will probably extend the current tiers for another two months until the end of January and then that will be it.
USA is BANKRUPT. There is no more shell game. The crap has hit the fan, and that’s all there is to it.
I agree with you, Andy. Never say never, and if for example the Republicans were to win a majority in both houses they might send a few crumbs to the unemployed, but my belief is that we will PROBABLY NEVER see a Tier 5.
I have to disagree about not getting a Tier 5. It’s the only way we are going to get money flowing again. We will make no progress at all if the economy remains as it is. Companies do not need employees if no one can buy there products. It is the only thing that makes sense. Hang in there — we will get a Tier 5.
B, Companies need consumers to buy their products with their OWN money, not money taken from someone else, who then cannot spend it themselves.
Yeah, right! There ain’t gonna BE no tier V. Who are you kidding? You think the Republicans give a horses *ss about the unemployed? If they win the marjority of seats, you can kiss the federal extended benefits good bye. And along with that, hopes of a fifth tier.
This is a good example of why we must get the Republicans out in Novenmber. They are playing games. People are starving and they are playing games. I have personally sent out hundreds of resumes to no avail. Republicans are so out of touch that they think we would rather be on unemployment struggling then to go to work and actually be able to pay our bills and have somewhat of a normal life. I would take 2 jobs to make up for my previous earnings if I could get two. I can’t even get one. ENOUGH OF THE GAMES. PLEASE VOTE THE REPUBLICANS OUT AND LET THEM SEE HOW IT FEELS TO BE OUT OF WORK!
I thought the President runs the country. Why can’t he step in and help those who have exhausted unemployment and all of the personal resources, like savings, 401K etc., people had for their future retirement.
I keep asking the same question. Where the hell if Obama? I disagree about not getting a Tier 5. If the government does not approve the Tier — do you think people are going to sit around and watch their children die from hunger. I don’t think so. I know if I had small children I would not. When we start having riots in the streets and large groups attack grocery stores in order to feed their families they will have to act. We need to show them how uncivilized we can be. I know there is going to be a lot of crime and people are going to die if we do not get money to take care of ourselves and our children.
Hey Barbara, I agree. My husband is a 99′er and I am on my second extension, but will obviously lose that come November 30. I firmly believe that it will turn into he who owns the guns makes the rules. All of us that end up losing our apartments, our houses, our income, will have to take over one of those abandoned buildings in downtown LA and set up sort of a military commune. WE will be the ones that end up making the rules. With governments laying off police and firefighters, we will outnumber them, and it will be similar to a MAD MAX situation. Heaven help all of us!
I am a 99er also. I have been without a job since May 7, 2008. My benefits ran out in June 2010. I think it is awful that they may not extend the deadline to allow all unemployed people to collect the 4 tiers of unemployment. It should not even be an issue. I can understand not wanting to give us a Tier 5 (even though we need it) but it burns me up knowing that some people will not be able to draw a 3rd or 4th Tier. We should all be treated the same. Good luck to you and your husband. All we can do now is pray.
It doesn’t make any sense for people to say,’Vote the Republicans out’,it’s the Democrats who control the Senate,Congress,and the Presidency. The DEms are the ones who could do something,but won’t. Please try and get that through your heads!!!
hey Jake Hess its the republicans in congress who have blocked it don’t blame the dems at all.
Actually it is both of them. The Dem and Rep. You need to find out how each and everyone of them feel about this crisis and then make your decision.
Mr Hess, perhaps you should educate yourself on the Senate Reps filibuster history over the past nearly 2 years. I think you would find the Senate Dems have a so called majority but the Senate Reps have the control. That is why the House has a back log of several hundred bills they passed and the Senate is holding up. The Reps need voted out for no other reason than to allow the Senate to function once again.
Oh brother,are you guys brain washed or what???
Your right Jake
Harry Reid add so much SHIT to the unemployment bill that the GOP won’t pass anything.
And how many times did he vote against it ?
They are all full of it.
Everybody do your homework like JAKE said.
Lets face the facts everyone , were all done , the republicans are going to take the senate and house .Put a fork in us and a Teir 5 . No more hopes we will all have to take what is handed to us . Back five or six years ago making 50,000 to 60,000 dollars a year are done . We will all have to fight making 8.00 dollars an hour . That is the new middle class in our great nation . Good luck you greedy bastards in wall street and the big banks , finance me a house or car at these wages I dare you to . You selfish idiots youll get whats coming to you . Its just a matter of time and well figure out how to survive the old school way . Watch out greedy ones , we might be your neighbor or the person down the street . Just remember always look behind your back and keep one eye open when you sleep .
Now I am forced to do something totally out out of my character…… like sell drugs on the street to the kids of the same SENATORS and CONGRESS men and women who blocked my TIER 5 EXTENSION. Sorry guys you left me no choice…….
The Senator from Florida who blocked the extension should be shot dead on his front door step. I hope he rots in hell the sorry ass white stupid ass REPUBLICAN THAT’S RIGHT I SAID IT ALL YOU DAM STUCK UP DUMB ASS REPUBLICANS CAN KISS MY BLACK ASS……….
I can’t stand this anymore!
Dems or Repubs…they care about their own interests that’s for sure as they left early to try to keep THEIR jobs!
All I know is that everytime a bill that is designed to help the working class American is introduced a REPUBLICAN blocks it! Yet they fight to extend the tax breaks for the wealthy along with rewarding companies for closing here and moving overseas!!!!
Rich get richer but now the the American worker gets poorer!
THIS IS NOT THE AMERICAN DREAM!
SHAME ON THIS COUNTRY!!!
Pelosi and Reid should be dragged from office, or if the President( Obama) had any balls, he would order them to recall all politicians until these matters were approved and he signed them. But Obama obviously is a pussy, just another mouthpiece for the Puppet Masters.
His lack of action in telling his people under him to do anything, loses My vote in 2012.
Why hasnt anyone presented these findings to him persoanlly, or gone public and forced him to be accountable for not doing anything.
Pelosi and Reid, who made the decision to go home and spend millions on trying to save their jobs while millions of families are going hungry,homeless and hopeless with winter coming on, should be tried in a court of law for Treason,Deriliction of Duty, Mass Domestic Violence, Mass Child Abuse, and GENOCIDE.
Take them out of office, anyway necessary
Thanks TW — Finally someone sums it all up. I agree with you completely. But Pelosi and Reid are just playing games. They are doing what they are told to do. And Obama — I will not say President Obama, he is not worthy of that, knows exactly what is going on and does not care. Everyone better get a gun for protection because we are going to be robbed of the necessities — food and medicine and a warm place to sleep.
Our country needs to get back to “we the people” not we the government. Times have changed but our policies have not. What was good 50 years ago is not necessarily good for now. It is awful that our government has been for years allowed to go off whenever they want and take so many vacations and have so much time off. Why have we allowed this to go for so long? There are so many things that need immediate attention and resolution that they should be in session every day until something gets done. For us citizens to have to wait till they campaign and do their personal things over helping our country is disgusting.
They are not fulfilling their duties we the people voted them in to do. It is sad what America has become. America is for sale and to the highest bidder. We unemployed have no money so we do not count. We have no represention other than on these sites. The average citizen who has a job and is not going through what we are going through have no clue as to what it is really like. They are not seeing our problems and our trying to survive on the local news. There are no 24/7 broadcasts showing our struggles and problems we are enduring. I think if our plight was more out there then maybe it would propel congress to fix this so us and future unemployed do not have to endure this.
The unemployed are viewed as welfare by a majority of the people because many think we are lazy and don’t want to work or better ourselves. When we were employed we never gave unemployment a thought either and never paid attention to what was going on. So without someone being our voice we will continue to be called lazy and everything else they say about us. Congress never had this many unemployed before and they do not want to deal with it so they just keep passing us off and hope we go away. In the past the old system has made us go away but times have changed and they are to blame and now they need to find a way to upgrade the UE and do something.
It is killing them to try as they do not want to take money out of their pockets and bank accounts that they have become used to funneling to where ever and to their benefits. By us not going away it is making them nervous as they don’t want to go without and they don’t want to lose any elections so they are allowed to close up shop to help themselves. They should be worried as we are at our wits end and we want and demand change.
Our country will see more and more marches and people are going to resort to violence especially when winter sets in as it will be the only way to survive. Our country is not equipped to handle more welfare and foodstamps or soup kitchens. There is not enough to go around and it is gonna be ugly I fear. Congress needs to be made to get back to work and resolve this. The President needs to step up and enforce this as well. He has become one of them and he needs reforming as well. Our country cannot
continue on like this or we will be setting ourselves up for take over.
Wow I almost made I was going to get hired for a 50-60 grand a year job but one of the office personel talked the boss out of hiring me be cause of being out of work for 2 1/2 years? wonderful. And some wonder why this economy is in the mess it is?
What really sucks is that this company is booming and needs worker asap but discrimination abounds . And of course i am 51 but i think it was mostly the lenght of time not working is what there real excuse was.
Its reasons like this to have a tier 5 to help but i know that will never happen.
So my next step is to live in my car and hope like crazy its not that cold of a winter. I lose my place to live and electicity and everything at the end of the month .
So let me end this in a Michelle Obama saying with a twist …” For the first time in my life I am ashamed of my country !!” Our country is gone and is a piece of shit thank you very much obama and company.
A tier 5 so you can continue to get paid not to work, keep wasting hot water taking long showers, buy cigarettes, buy lottery tickets and can style and profile in your whip wasting gas. Do you not understand we aren’t going to pay for this anymore, it did not stimulate anything but your pocket. Gawd!
Regarding Sebastian
As regular readers of my articles know, Sebastian is a regular troll, following from article to article like an unrelenting virus.
I am well aware that Sebastian has the freedom of speech that is guaranteed to all of us and I would do nothing at all to abridge his right to express his opinion. It has been said that the real test of freedom of speech is the ability to defend the right of the comments of others whose opinion you find utterly contemptible and objectionable. In this sense I will absolutely defend Sebastian’s freedom of speech.
What has remained a puzzlement to me since his troll like presence started to crawl across my articles is to what end does he continue to post these insensitive, ill informed, and yes, even cruel and vicious remarks? Certainly he cannot believe his arguments (I suppose they should be called “rants” rather then reasoned comments) are persuading anyone.
Debate is good – and I have long believed that reasoned debate among reasonable people who may honestly disagree often creates better solutions then those that were originally proposed. But Sebastian offers no real alternatives to the problems facing millions of Americans who lost their job through no fault of their own. He seems to get almost a glee about the suffering of others. How can anyone who seems to laugh at other’s suffering (suffering that is not deserved) can be taken seriously is beyond my comprehension.
It seems to me that the only reasonable explanation is that he is one of those people that can only support his fragile self worth by feeling superior to others. By ridiculing others who are in dire straights not of their own making, he seems to believe he is accomplishing something. Perhaps he is; showing his true colors as a man incapable of empathy for others, secure in the belief that he is the ultimate authority on everything.
I do not suggest that Sebastian stop commenting on my articles. I sincerely hope he will continue to exercise his right of free speech. I also hope that readers with sincere opinions – even those which may disagree with my writing – will continue to comment. I also suggest that his comment be seen as what they appear to be, the ravings of a man without empathy who is only trying to increase his lamentably low self worth by looking down on others.
Michael Colliss