Tuesday, December 22, 2009

MSNBC: Unemployment Fund Broke In Most States

The recession's jobless toll is draining unemployment-compensation funds so fast that according to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks.

The shortfalls are putting pressure on governments to either raise taxes or shrink the aid payments.

Debates over the state benefit programs have erupted in South Carolina, Nevada, Kansas, Vermont and Indiana. And the budget gaps are expected to spread and become more acute in the coming year, compelling legislators in many states to reconsider their operations.
Currently, 25 states have run out of unemployment money and have borrowed $24 billion from the federal government to cover the gaps. By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami.

"There's immense pressure, and it's got to be faced," said Indiana state Rep. David Niezgodski (D), a sponsor of a bill that addressed the gaps in Indiana's unemployment program. "Our system was absolutely broke."
LINK HERE

5 comments:

  1. When I used to work for AT&T in 2001, we were given our lay off notices in November of 2001. You should have seen the scene. Many of my co-workers just plain lived beyond their means. As soon as they got a raise, they figured out ways to spend it all.

    To my shock, most of my co-workers (about 30% only had two months of savings to cover expenses in case they lost their job). 20% had six to eight months of savings to cover expenses and the rest had hardly much.

    All of them believed that "there is no way the government would allow us to go without basic human needs (food, shelter, etc...).

    For the love of God, some people need to wake up and start saving money in case they lose their job. Too many of our fellow Americans think the government will provide for them.

    ReplyDelete
  2. Here is a story from my current job. In October, some people were given lay off notices. Boy were they sad. A lot of people talked about money problems and I truly felt sorry for them (even though it was their fault they didn't save money).

    But a month later, my employer announced that after doing a study, it would cost them more money if they let people in this department go. So everyone was happy.

    You know what these fools did next? Well they held a party at a bar. These fools who were about to get laid off were drinking up a storm. They spent anywhere from $70 to $220 on drinks. Then some of them went out and got the newest Apply Iphone, Playstation 3 for their kids, etc...

    Some people never learn. And then when disaster hits in their financial life, they are "victims of the financial crisis".

    ReplyDelete
  3. I STILL say - this gov't can a WILL print as much
    fiat money as it needs & I don't really give a shit who buys it; Us, Them, You, We -- what the hell is the difference? Point is WE THE PEOPLE still trust it & if you don't believe that just look in the wallets & bank accounts of the "commoners" around the globe - when it comes to paper money they are holding U.S. Dollars.
    Also - why be afraid to lose your job? Most states are at or near the 2 year mark for unemployment benefits - shit man; 2 years is a long time!!

    ReplyDelete
  4. Everybody Photocopy MoneyDecember 22, 2009 at 10:00 PM

    for the sake of america,
    everybody photocopy money

    ReplyDelete
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