Are Extended Federal Unemployment Benefits the Best Way to Boost the Economy?
Are Extended Federal Unemployment Benefits the Best Way to Boost the Economy?In 2009, the Economic Stimulus Package extended unemployment benefits an extra 33 weeks and added an extra $25 per week. In November, benefits were extended an additional 14 weeks. States where the unemployment rate was at least 8.5% got an additional 6 weeks of benefits. Benefits continued to be extended until June 2010, when concerns about the budget delayed further extensions until July 2010.Answer: Every dollar spent on unemployment benefits stimulates $1.73 in economic demand, according to an Economy.com study. That’s because the unemployed spend every dollar they receive on basic essentials, such as food, clothing and housing. During the final quarter of 2008, the UC program paid about $34.9 billion in benefits to some 8
