AP: Cut-off of jobless aid would lower economic growth

[1776Forever]

Cut-off of jobless aid would lower economic growth
Nov. 30, 2010, 7 a.m. EST
Associated Press

http://www.lehighvalleylive.com/newsflash/index.ssf/story/cut-off-of-jobless-aid-would-lower-economic-growth/354dbac1b59848e38b0cbf8532c177de

WASHINGTON (AP) — If Congress lets unemployment benefits expire this week, the jobless won't be the only ones to feel the pain. The overall economy would suffer, too.

Unemployment benefits help drive the economy because the jobless tend to spend every dollar they get, pumping cash into businesses. A cut-off of aid for millions of people jobless for more than six months could squeeze a fragile economy, analysts say. Among the consequences they envision over the next year:

— Annual economic growth could fall by one half to nearly 1 percentage point.

— Up to 1 million more people could lose their jobs.

— Hundreds of thousands would fall into poverty.

"Look for homelessness to rise and food lines to get longer as we approach Christmas if the situation can't be resolved," says Diane Swonk, chief economist at Mesirow Financial.

(More at link)

..............

Anyone listening in Congress and the Senate or are we just going to keep playing games?

:shrug: