Extended Unemployment Benefits To Expire At Year End [BAD ECONOMY]

Posted: July 11, 2011 in News, Opinion

I personally was against the extended unemployment benefits from the get go. All they were going to do was delay the inevitable collapse of the economy, which they were successful at. However anytime you try to fix debt with more debt there comes the time when you have to pay up.  With these benefits hitting the wall at the end of the year look out for another serious dip in the economy.  In order for us to balance the budget we have to stop printing money and creating debt to try and solve our debt problems.  This means a rough patch of time when we all suffer through the hardship of actually paying off debt, and letting the economy reset. This means we need to have serious cuts in our government budget, serious cuts in our social welfare, serious cuts in our inflated stock market.  Don’t let the press fool you about how having a true market downturn would be bad for you.  For most people in the country the effects would be minimal and probably beneficial.  Yes many people would lose their jobs, and some would lose retirement savings they have poorly invested, but in the long run it would correct our outrages inflation rate and make the small salaries the majority of the country is earning go a whole lot farther. BE PREPARED FOR THIS DOWNTURN.  In my opinion it has to happen in the near future we have pushed the country to the brink and its time we pay up.  So try to position yourself to take advantage of the coming drop.  Ask your financial advisor about how you can protect yourself and move your portfolio into more conservative investments.

Excerpts from –> The next big hit to the economy?

At the start of 2012, the extended unemployment benefits approved by Congress in December 2010, which cover a maximum of 99 weeks per person, will expire. Though the benefits are hardly lavish–a little more than $300 a week for most recipients–their total impact on the economy is huge, because so many Americans are currently taking advantage of them. Moody’s Analytics estimates that when the benefits expire, $37 billion will be taken out of the economy, the New York Times reports. That’s enough to exert a significant slowing effect–at a time when the recovery is already a long way from robust. 

Indeed, economists say that the withdrawal of jobless benefits will create a major ripple effect on growth as a whole. Consumer spending accounts for around 60-70 percent of U.S. economic activity, economists say. But with so many Americans having lost wealth in the housing bust, spending has been tepid for a while, preventing the recovery from gaining any momentum. Now, the end of the extended benefits will likely soon put a further crimp in spending.

Put it all together, and it suggests that things aren’t likely to get much better any time soon.

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