Another Blow to Midwest Workers

[babylonsister]

http://prospect.org/csnc/blogs/tapped_archive?month=03&year=2011&base_name=another_blow_to_midwest_worker

Another Blow to Midwest Workers
By Sarah Babbage | Posted 03/24/2011 at 02:51 PM


Yesterday, the Republican-controlled Michigan Legislature passed a bill that sets a dangerous precedent for jobless workers and continues Midwest governments’ assault on the vulnerable middle class. While the bill would continue extended unemployment insurance for those already unemployed, it cuts the time new claimants can receive benefits -- from 26 weeks to 20. This would make it the first state to go below the national standard of 26 weeks.

Legislators supporting the bill must have a rosy economic outlook if they think future claimants won’t need benefits for as long as they do at present. They ignore the fact that Michigan faces deep, structural economic challenges that aren’t going away anytime soon. Four of its counties have unemployment rates above 20 percent, signaling problems that go far beyond the setbacks of a recession. Its state unemployment rate remains at 10.7 percent, far above the national rate of 8.9. Those jobs aren’t coming back any time soon, and forcing people off the rolls earlier will do nothing to force them back to work.

What’s really troubling is that the state isn’t doing this to balance its budget; the Extended Benefit program is federal. Michigan employers who pay into the fund will save some money, but the returns on the amount saved probably won’t be able to compete with the significant returns generated by UI. For every dollar the government spends on UI, it injects a stimulus estimated to be between $1.60 and $2 into the economy. That’s stimulus that a struggling state like Michigan really needs.

[Omaha Steve]

1. K&R!

[sarcasmo]

2. A local guy received a letter stating that his unemployment would be finished in 2 weeks.

The new heartless governor we have here in Michigan is taxing and screwing the small guy and giving the tax breaks to big business. The local TV news did a piece on the guy who was giving 2 weeks notice that his life was screwed so I don't have a link.

[babylonsister]

3. I'm at least happy to read the local news covered it; how sad. nt

[socialist_n_TN]

4. All this fucking with UEI coverage is just the precursor.........

to cutting it out all together. They know that in the new employment paradigm they are putting together for the American serf there will be a LOT more unemployment for longer and longer periods of time and the state can't support these "useless eaters" anymore.

[Rage for Order]

5. "Sorry you lazy fuckers. We need that money to buy more Tomahawk cruise missles!"

:puke:

[Bozita]

6. More Freedom Bombs!

[Hugabear]

7. I believe Rick Scott in Florida wants to do something similar

I read recently something about him wanting to cut unemployment for new claimants to 20 weeks.

[sarcasmo]

9. More pulling yourself up by the boot straps republican thinking.

[myrna minx]

8. Wow- their not even hiding their contempt for the plebs anymore. K&R n/t

[Urban Prairie]

10. Rethugs in Michigan are creating/clearing a wider path for the future unemployed

by making it more appealing to them to leave the state, rather than to remain.

Unfortunately, this reduction cuts across many, if not all levels of ability, skills, experience, and education, although they probably believe or have concluded from studies and consulting with experts, that higher-paid employees who are laid off or fired can weather the loss of unemployment benefits, longer and better than those who do not.

So it is a win-win scenario for them, since lower-paid or union employees who are laid off/fired tend to vote Democratic, and the more that are forced to leave the state, the much more likely it becomes that Rethugs will win offices in local and state elections.