Unemployment Benefits Running Out for Millions

As unemployment benefits run out for 1.3 million Americans desperation may soon set in. Of the 14.5 million Americans out of work, extreme hardship will hit these folks before the end of the year. Many more have already lost benefits. As of July foreclosure rates were up with 1 out of every 355 homes in actual foreclosure proceedings. Many, many more are in default which will drive these rates even higher. With unemployment benefits running out, those that were barely holding on will not survive the impending foreclosure wrath.

Those most affected are middle income workers whose unemployment benefits are woefully under their normal salary range, typically we are hearing a month’s worth of unemployment checks is less than 20% of their normal income when working. An income level these households need to survive. No amount of “cutting back” can compensate for the difference of lost income to benefit ratio.

With the “economic recovery” not happening per the administration’s plan these displaced workers have nowhere to turn and available jobs are weakening with employers still cutting back and tightening their belts awaiting the impact of proposed legislation that will increase fees and taxes.

The Cap and Trade and Healthcare bills along with the present liberalistic progressive agenda seem to be feeding employer caution. We are also hearing from job seekers, and job board observations there is a noticeable change in wages and salaries by those employers that are hiring, in some cases lessening by as much as 40 %. There also appears to be a trend forming excluding older more experienced workers from the marketplace unless they are willing to accept near entry level wages, even for positions that are considered skilled or supervisory level and higher. Employers are also appear more willing to accept less experienced recruits and trade lowered productivity and training expenses versus the expense of highly experienced personnel.

With the “recession” expected to continue, given the market trepidations of pending legislation, consumer spending down, and no help on the way from either Federal or State Legislators it appears millions may very soon be homeless. Further with unemployment benefits at almost inconsequential rates, barely enough to cover the basic needs of food, water and electricity beneficiaries have been forced to choose between putting food on the table or paying the mortgage, mortgages which in many cases are higher than the monthly benefit. As savings, college and retirement accounts are being wiped out to maintain the rent or the mortgage very few will have the necessary funds to relocate after foreclosure.

This administration and congress need to abandon their agenda of change forget Healthcare, Banks, Car companies and Green legislation and focus on a recovery package for the American people who are the ones facing the brunt of the US economic straits.

Per projections by the US department of Commerce Bureau of the Census there will be 114.8 million households in the United States by 2010. That’s 4 months from now. Using the unemployment numbers and assuming each job supports a household, that means that 12.63% of these households formerly supported by the now unemployed will be defunct, having been or are in the process of being foreclosed or evicted. Applying US Bureau of the Census population estimates for Jan. 1, 2009 at 305,529,237 and multiplying the rate above that translates to 38.58 million people could be homeless by as early as Christmas.

Accurate numbers could not be found to compare the numbers of homeless during the Great Depression in 1929 however we have already exceeded to number of unemployed of 13 million by 1932, by 1.5 million and we are still shedding jobs by the hundreds of thousands per month. Percentages aside, which work to the advantage of the present crisis given population growth, the numbers of homeless families will be greater than that of the 1929 to 1932 Era.

It should be noted the situations the unemployed find themselves is not of their own making. It was thrust them upon as a result of wrong thinking Congressional politicians and bureaucrats during the Carter and Clinton administrations. This started with the propagation of the Community Reinvestment Act and further tampering by the likes of Barney Frank and Chris Dodd into the federally guaranteed loan organizations such as Freddie Mac, Fannie Mae and Ginnie Mae. The Government is responsible for interfering with mechanisms of the free market and the liquidity issues which are at the base of our economic fall and directly to blame for the situation the unemployed find themselves in.

This government desperately needs to recognize to real issues facing Americans and provide real solutions. The pipe dream of Universal Healthcare and the folly of Cap and Trade need to fall by the wayside before the American public is living there. First and foremost there should be an immediate moratorium on foreclosures, by use of suspension and reassignment until gainful employment can be obtained once our economy has indeed recovered. This should be the only topic on the agenda.

We have all heard the theory of this Administration is just waiting for a good crisis to “seize absolute power” and Rom Emanuel’s statement of “never wasting a good crisis” has been aptly reported, well here is a real opportunity for this government, it's leaders and legislators to lay aside some of the skepticism and prove their self aggrandized worth.

Don’t waste the opportunity to do some real good in the lives of the American people.

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