Wednesday, December 1, 2010
Isn't it great having less money?
Less Money, More Problems
How in the world is the U.S. economy going to recover if the American people have less money to spend? Millions of American families are heading into 2011 knowing that either they won't be seeing an increase in income or that their incomes will be smaller next year. Long-term unemployment benefits are being cut off for millions of Americans, federal workers are having their wages frozen, Social Security recipients are not going to get a cost of living increase for 2011, taxes are going up for the vast majority of U.S. families and employers are forcing pay cuts on their workers across the United States. Meanwhile, the cost of food just keeps going up, the cost of gas just keeps going up and the cost of health care just keeps going up. So what are millions of American families that are already stretched to the limit going to do when they have less money in 2011?
Millions of unemployed American workers are heading for a very bleak 2011. Unless Congress acts, and there is no indication that is going to happen, approximately 2 million Americans will stop receiving unemployment checks over the next couple months.
The government is really between a rock and a hard place on this one. After all, who is so heartless that they actually want to cut off the little financial support that millions of deeply struggling American families are depending on? Not extending the long-term unemployment benefits is going to mean more Americans are going to lose their homes, more Americans are going to go bankrupt and more Americans will end up in tent cities.
But as CNN recently reported, extending the long-term unemployment benefits through next year would cost the federal government $56.4 billion that we simply do not have. The U.S. government is absolutely drowning in red ink and cannot afford to just chuck another 56 billion dollars more debt on to the pile.