Let Them Eat Pie In The Sky

Pie in the SkySo, the Senate version of a bill to extend unemployment benefits for the long term unemployed will be on the Senate floor on Friday (maybe), if Senate Majority Leader Harry Reid (D-NV) can move through the arcane labyrinth of the Senate Rules. [Roll Call]

The arguments emanating from the GOP side of the aisles would be easier to understand IF anyone from that quarter could explain why it was perfectly acceptable to extend long term unemployment benefits FIVE TIMES during the Bush Administration — but is somehow categorically unacceptable today.

The Incredible Moving Goal Posts

The fact that the Senate Republicans continue to move the goal posts on Senate action serves to remind us why the arguments against the extension are ultimately specious.

The Senate Republicans wanted to add amendments, amendments were allowed, but not enough amendments? Not the right kind of amendments?  The Senate Republicans wanted a Pay For, they got one — on the backs of working people — who would be required to make larger contributions to unemployment insurance programs — that was insufficient, they want MORE… of something.  Whatever. And, whatever is offered by the Democratic leadership we can all bet it will be insufficient to assuage the tender sensitivities of the Ever Outraged GOP.

Right here in the Silver State we have approximately 20,000 individuals who are among the long term unemployed. [LVSun]  They join the estimated 1.3 million [CAP] to  3.8 million now still unemployed or still looking for work in this country. [Guardian]

Let Them Eat Pie In The Sky?

At this point we get to the major question — What’s wrong with extending long term unemployment benefits for people who’ve been out of work for more than 27 weeks?

(1) The incredibly flexible Deficit Argument:

The Republicans won’t vote in favor of extending unemployment insurance benefits because that would increase the federal budget deficit (except the Pay For on offer from the Democrats) unless the Democrats add a provision increasing military retirement cost of living benefits — which would ADD TO THE DEFICIT.  [Roll Call]

Be that bit of illogical thinking what it may, the notion that unemployment benefit insurance payments are swirling into the Black Hole of The Ever Flexible Budget Deficit can’t be sustained when the actual cost to the federal government isn’t increasing. The Congressional Budget Office reported last April:

“Federal spending on unemployment insurance: Annual outlays increased from an average of $33 billion from 2004 through 2007 to $119 billion in 2009 and $155 billion in 2010; they dropped to $93 billion in 2012 and we expect them to decline further over the next few years.”

All you have to do in order to accept the GOP argument that the cost of extending unemployment insurance benefits for 1.3 million long term unemployed people is too much to sustain is simply to ignore the fact that unemployment benefit costs have been declining since 2010.  For those not connected to the Fact Based Universe this should be relatively simple.

(2) Lazy People Argument:  Here they go again!  Somewhere, out there in the Shadow Land of Make Believe there are thousands of lazy shiftless do-nothings who are perfectly happy to be the beneficiaries of public largess — who aren’t members of Congress.  First, this is a Dog Whistle argument, as if receiving unemployment insurance benefits is a form of welfare.  It isn’t, of course, workers have paid into those employment insurance programs.  However, the economic or statutory reality of a program has never stopped the anti-government crowd from splattering the ‘welfare’ label on something, anything, that might remotely help someone.

Secondly, there’s that conception amongst the uninformed that people can make more money not working than by working.  “They” can earn more on ‘welfare,” or “They” can get by not working by simply taking unemployment checks.  The people making these claims have obviously never seriously checked into the eligibility requirements of the Nevada program.

No, in this state, as in most every where else, the Shiftless One cannot refuse employment at a lower rate just because unemployment benefits might be higher — they aren’t and they don’t.   But, we know what the GOP’s thinking?  “They” are those “inner city….. people…..who sit on porch steps….” And, now we’re back at the Dog Whistle.

(3) We’re Just Here To Help You – Have Some Pie From Our Sky.  The problem with pie in the sky is that it is intrinsically  inedible.

In the theoretical world of the Club For Growth and other ultra-conservative outlets, unemployment insurance benefits constitute a drag on employment by being a dis-incentive to work.  Anything which supports a person who is not currently working is automatically classified as a dis-incentive because were the support not available the person would have to work to eat, or something like that.

This also requires the corollary concept that there is work for everyone.  Except that’s not the case, there are now three job seekers for every job opening in the country. [politifact] Thus, the Pie in the Sky model of economic theory falls flat because in the real world of real numbers, two of the job seekers (with or without support) are still going to be looking for work whether there’s an incentive or not.

The second problem with this Pie in the Sky argument is that most people are working, seeking work, or getting discouraged in the process.  Consider, Nevada has an unemployment rate of 8.7%, which means that 91.3% of employment aged people ARE working.  The unemployment rate in the Reno area is 9.1%, meaning that 90.9% are working — [DETR] if the mere existence of unemployment insurance benefits, or any other safety net program,  is such a dis-incentive for working people, why are so many people doing it?

Most of the time the arguments from the ultra-right require the acceptance of a negative view of humanity, a perspective which demands acknowledgment of such furtive claims as “They” are undeserving because “They” are lazy, shiftless, bums who want to watch television and drink beer… without having to specify who “They” might be.  It’s also handy to buy into the well debunked Trickle Down Hoax, in which every tax avoided by a corporate employer, every source of funds left untaxed, and every loophole created in the tax code is magically translated into imaginary jobs.  We tried 30+ years of this and all we got was a Mortgage Meltdown compliments of the Wall Street Casino.

If there are no procedural problems other than those manufactured by the obstructionist GOP leadership in the Senate, and there are not statistical reasons not to extend unemployment insurance benefits for those who have already paid into the systems, and there are no rational economic reasons for not continuing to utilize automatic stabilizers such as the unemployment benefit insurance programs … then why not pass the bill?

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