Mar 03, 2010

It looks like the jobless rate is going to drop dramatically in the next few months. The Senate failed to pass an extension for those who are collecting unemployment benefits beyond the "normal" time limit of 26 weeks. That means a million people will lose unemployment benefits this next month, with millions more by June.

Of course, since the unemployment rate is calculated by counting the number of people collecting unemployment benefits, this means we should see a huge drop in the unemployment rate! It looks like the recession is over, thanks to the Senate.

No doubt Senators blocked this extension because government spending is so out of control. Any leeway in spending was used up in the past year bailing out Wall Street, and now they are being asked to pass and fund the expensive health care bill. Some Senators simply want to put on the brakes. The only solution is not even being discussed yet, so the only choices are (1) bad, or (2)worse.

http://money.cnn.com/2010/02/26/news/economy/unemployment_insurance/