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Compromise: An equation for failure

As 2010 winds down, the expiration of the Bush tax cuts loom and long-term unemployment benefits have expired for millions of workers who have come to rely on unemployment benefits as more of a permanent welfare system than temporary unemployment relief. Democrats in Congress want the tax cuts to expire and the unemployment benefits to be extended. Republicans want the tax cuts to become permanent and any extension of unemployment benefits to be offset by spending cuts. A compromise that would temporarily extend the tax cuts and extend the unemployment benefits is in the works.

Such a compromise is an equation for failure. As demonstrated in the recent elections, the American voters now recognize Obamanomics is not the answer. Republicans have the upper hand after their sweeping victories last month. The American people essentially demanded the extension of the tax cuts at the ballot box. But Republicans seem incapable of voicing a true conservative position on the unemployment issue–Democrats’ transition of the unemployment insurance program from temporary assistance to permanent welfare keeps people unemployed!

Last week the Labor Department released November unemployment figures. Incredibly, for the month retailers stock up on new hires to handle the surge of shoppers in the Christmas season, the unemployment rate climbed from 9.6% to 9.8%. Late last month, the Federal Reserve Board predicted high unemployment through the end of 2012. They expect the rate to fall to 9% by the end of next year and remain above 8% at least until the end of 2012. The simple fact is…

OBAMANOMICS IS NOT WORKING!!

The unemployment insurance program began as a temporary benefit to minimize disruptions as a worker transitions from one job to the next. In most states, unemployed workers initially qualify for 26 weeks of unemployment benefits. That gives a worker 6 months to find a job–hopefully one on par with the one previously held. But the system is designed so that, if a laid-off worker can’t find a similar job in that 6 months, he’ll have to take a lesser job after the benefits expire. He may be required to move to a smaller home, drive a lesser car, and start buying off-brand groceries, but he’ll have to find a job.

But Democrats want unemployed workers to keep getting their checks and remain dependent on the US government. Democrats want people grabbing at their skirts, begging for the scraps Congress drops from its table. The last thing Democrats want is for those people to be forced out of the house, off the couch, and into a job…any job! That would mean the people would become independent, they would stop identifying themselves as victims and begin to grasp the reality that their future lies in their hands. They would seize opportunity instead of wondering what taking advantage would mean for their check.

And Republicans aren’t making the case that extending unemployment benefits is a bad deal. It’s almost as if they are afraid to make the conservative argument, even in light of the sweeping victory in last month’s elections.

Starting in July 2008, Congress has already extended unemployment benefits 4 times during this recession. Laid-off workers currently qualify for up to 99 weeks–almost 2 years–of unemployment checks if they don’t find a job. Each of those extensions came from a Congress dominated by a heavy Democrat majority, but President Bush did sign the first couple of extensions.

But now, after their historic victory, the GOP is offering to cave to Democrats on the next unemployment extension. They have offered to compromise. If Democrats agree to the Bush tax cut extension, Republicans will support the extension of unemployment benefits.

Sorry, there are times when compromise is not a bad thing. But when the compromise means keeping Americans on the dole, continuing to make them dependents of the federal government, damping their will to become independent, keeping them counter-productive in society, encouraging them to view themselves as victims, and keeping the unemployment rate high via government subsidy, this compromise is wrong.

To further extend the unemployment benefits (in one bill to three years) only works to keep people unemployed, extending high unemployment rates. The proposed compromise is an equation for failure.


Tags: Unemployment, Democrats, Republicans, Compromise, Tax Cuts, Taxes, Bush Tax Cuts, Economy

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December 5, 2010 - Posted by | Economy

2 Comments »

  1. […] This post was mentioned on Twitter by John Allison III and Dump Blanche Lincoln, Boot Berryism. Boot Berryism said: Compromise: An equation for failure: As 2010 winds down, the expiration of the Bush tax cuts loom and long… http://tinyurl.com/27z47kp […]

    Pingback by Tweets that mention Compromise: An equation for failure « America, You Asked For It! -- Topsy.com | December 5, 2010 | Reply

  2. I’m eagerly awaiting the word from “fiscal conservatives” that extending tax cuts will lower the deficit, with historical referents as justification. I’m also waiting for Obama to declare his Capitulation as a sound economic decision.

    Comment by Name: Mark | December 6, 2010 | Reply


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