How’s this for irony? According to a report from the Congressional Budget Office (and as first reported by the Associated Press), extending long-term unemployment benefits will create new jobs!
Extending benefits for another year would potentially add 300,000 jobs to the economy.
As per the piece, although maintaining unemployment benefits has a price tag associated to the tune of $30 billion for the government, it would result in the unemployed population spending more thereby increasing a demand for goods and services and creation of new jobs.
The CBO report demonstrated when one dollar from an unemployment payment gets spent, the economy yields a bump. It actually gets amped up by $1.10!
Keep in mind typical unemployment benefits have lasted up to 26 weeks for eligible workers who lost their employment and seek unemployment. Thanks to the recession circa 2008, the federal government has increased the length of time and offered additional assistance up to 47 weeks.