WASHINGTON - Ways and Means Committee Ranking Member Sander Levin (D-MI) made remarks on the House floor today on the Republican myths about unemployment insurance:
“As we meet today 1.5 million long-term unemployed Americans are left out in the cold," said Rep. Levin. “Adding to that total, 72,000 each week. If we don't act, it is estimated that an additional 3.6 million will lose their benefits by the end of this year. Why hasn’t Congress acted? Partly because of myths, and I want to address them today."
Myth 1: The need for these benefits is over
* Nearly 38% of jobless long-term unemployed - twice rate when EUC started.
* Highest ever recorded before this recession was 26%.
Myth 2: Unemployment benefits create a dependency and is a “disservice"
* Overwhelming research rebuts this - unemployment benefits help people looking for work.
* Unemployment insurance recipients must actively look for work to be eligible for benefits.
* The average benefit $300 a week.
Myth 3: The jobs are there
* There are still 1 million fewer jobs today than when the recession began in 2007.
* When Wal-Mart opened a store in D.C. 23,000 people applied for 600 positions.
* In Hagerstown, MD, 36 job openings at an ice cream plant attracted 1,600 job applications.
Myth 4: North Carolina shows if you end unemployment insurance the unemployment rate goes down because people go to work
* In fact the opposite is true. People stop looking for work - the vast majority of the drop in unemployment rate in North Carolina was because of people leaving the labor force.
Myth 5: 99 weeks of unemployment insurance is too many.
* Actually, the program hasn’t provided 99 weeks of coverage in two years.
* Last year, the maximum benefit was 73 weeks and it was only available in 3 states. The average nationwide was 54 weeks.
* Now just 1-in-4 unemployed people receive unemployment benefits, the lowest rate on record.
Myth 6: The unemployment insurance program needs to be reduced as the unemployment rate goes down
* Already done - the current program is set up to be scaled back as state unemployment rates drop. Only 3 states were eligible for the maximum benefit before the federal Emergency Unemployment Compensation program expired.
Myth 7: An extension of the federal Emergency Unemployment Compensation program must be paid for
* This remains an emergency for 1.5 million long-term unemployed people.
* None of the 5 unemployment insurance extensions signed into law by President Bush were offset.
* Senate Democratic proposal paid for an 11-month extension. This proposal was voted down by Senate Republicans.
Myth 8: The unemployment insurance program is not necessary.
* In 2012, federal Emergency Unemployment Compensation lifted 2.5 million people out of poverty.
Myth 9: We need more economic growth, not more unemployment insurance
* Congressional Republicans have stymied every effort to help the recovery.
* Unemployment insurance helps promote economic growth -- CBO estimates 200,000 fewer jobs in 2014 without extension.
* Republicans should not punish those desperately looking for a job while also blocking efforts to help grow economy.
