CBO: Increasing Jobless Benefits Would Create Jobs
A report by the Congressional Budget Office shows that extending long-term unemployment benefits for a year would create 300,000 jobs.
The analysis released Wednesday from the nonpartisan office estimates that keeping jobless benefits would cost the government $30 billion. But it would also lead to more spending by the unemployed, boosting demand for goods and services and creating new jobs.
Federal long-term unemployment benefits are set to expire on Dec. 29 for more than 2 million workers unless Congress approves an extension. Democrats have called for reauthorization of extended benefits, but Republicans generally oppose more jobless aid without additional spending cuts to offset the cost.
“This report is more evidence that extending help to those who are seeking work is a better investment for our economy than extending tax breaks for those resting comfortably atop the economic ladder,” said Rep. Lloyd Doggett, D-Texas, a member of the House Ways and Means Committee.