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Unemployment Insurance Buckles After Years of Underfunding
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| ninetyninej |
http://www.propublica.org/feature/u...not-working-603
Unemployment Insurance Buckles After Years of Underfunding
by Olga Pierce, ProPublica - June 3, 2009 2:00 pm EDT
Half a million Americans lost their jobs in April, meaning there are now officially 14 million unemployed workers, the highest percentage in 25 years, and the strain on the unemployment system is beginning to show.
A compromise dating back to 1935 means each state has its own unemployment insurance system, with wide latitude to set taxes and benefit levels. As state systems buckle under the weight of skyrocketing unemployment, the fault lines of the current structure have been brought into stark relief.
States have been left on their own to financially founder or prosper, and benefits vary nearly as much as the health of state systems.
[2]Fourteen states have simply run out of money to pay benefits and been forced to borrow from Washington a total of more than $8 billion. That number is almost certain to grow as more states reach the brink. If they are not able to pay that amount back before 2011, which most will not be able to do, they face paying hundreds of millions of dollars in interest.
State Unemployment Rate Average Weekly Benefit Amount Percent of Unemployed
Receiving Benefits Trust Fund Balance Borrowed Amount
California 11% $296.84 37% $116,350,000 $816,250,186.19
All 50 states:
http://www.propublica.org/special/i...m-in-danger-603 |
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| Nerologic |
| wow, this is a shocker.... |
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| Jim Carson |
| Both New York and California have borrowed a ton of money. |
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| DaveT |
Yeah, I was greatly worried about the state running out of money for Unemployment as I was signing up because they were just about out, but luckily they automatically kick over to borrowing from the federal government once it was...which they did in like February.
This all said, I think when the economy rebounds it's going to be rebound in a huge, huge way...and it'll be because of responsibly spending. I see it as a wakeup call to put your money where it's going to benefit you in the future and the government will start making money back pretty fast and in a big way. The states are just going to be really hurting for the next few years...it'll prob take them a bit to noticeably recover once the rest of the economy does.
What I am interested in is seeing how the credit-market works after this. Millions of people's credits are being destroyed. Your FICA score goes down around 200-300+ points if you home goes into forclosure. I wonder if the grip creditors have on this country and what you are able to do with your money is going to be adjusted. It's not like it's some little recession in the past where people can be hurt and recover from quickly. A lot of family's credit are being absolutely destroyed and fewer than ever will ever be able to repair it in any type fo timely manner. |
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| dj mccord |
noooooooooooooo
I was laid off on Friday. Ugh! |
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| Nerologic |
| quote: | Originally posted by DaveT
This all said,.......and it'll be because of responsibly spending. |
:haha: :haha: :haha:
Wow sorry but i laughed my sass off when i read that part.
You seriously think people are going to be responsible when they spend once things get better?
You are giving the general American public too much credit. Sure a hand full of people might think twice before they buy something with a credit card, but the majority of people out there are still STUPID.
I mean just look at California for an example, WE VOTED A ING MOVIE STAR in to office. And if you remember back, Reagen was also a TV star. But Reagen actually did have some political background.
You are also talking about the same people that actually though eminem's tea bagging on MTV was real, when if you would have saw it you KNEW it was completely stage.
Enough ranting for me, you have a kind soul for thinking that way Dave... |
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