All unemployed people are equal, but some are more equal than others

By Barbara Kiviat | September 23, 2009 | +

I try not to spend too much time paying attention to politicians’ Twitter feeds (or to what politicians say in general… or to Twitter feeds), but this tweet, from Rep. Lee Terry of Nebraska caught my eye:

Why is an unemployed person in California more worthy of help than an unemployed person in Nebraska?

He was responding to a House bill that would extend unemployment benefits by 13 weeks—but only for people who live in states where the unemployment rate is at or above 8.5%. Here’s the complete two-tweet set for context:

Arrogance of the speaker showed when she brought a 13-week unemployment extension for peolple [sic] in states w/over 8.5% unemployment…

…That excludes Nebraska. Why is an unemployed person in California more worthy of help than an unemployed person in Nebraska? I voted NO.

Yes, it does seem unfair.

But perhaps worse than that it seems really inefficient. I understand that Congress is trying to triage here, but relying on state unemployment rates leads to a fairly sloppy allocation of funds. States are big places, don’t you know, and many of them come with multiple economic ecosystems.

For example, under this bill, a person living in Wenatchee, Washington would get an extra 13 weeks of benefits. The unemployment rate in Wenatchee is 5.9%. Meanwhile, a person living in McAllen, Texas, where the unemployment rate is 11.6%, would not get any additional benefits. That’s because 8.9% of workers in Washington are unemployed, while 8.1% of those in Texas are.

I have no idea why 8.5% is the magic number. Maybe someone else does and could fill me in. But what I don’t understand more is why no one took the time to tie the these extra unemployment benefits to local unemployment rates, since they’re pretty easy to find on the Department of Labor’s web site.

The bill is still working its way through Congress—if someone wants to quickly make the switch, I’m sure the residents of Danville, Virginia (unemployment: 12.7%) and Waterbury, Connecticut (10.6%) would be appreciative. Because otherwise they won’t be seeing benefits, even though folks in Idaho Falls, Idaho (unemployment: 6.1%), Ithaca, New York (6.3%) and Morgantown, West Virginia (5.3%) will be.

Barbara!

@TIMEBusiness

Latest on Business

Airlines May 22, 2012

Senate Approves Hike in Airline Security Fees

(WASHINGTON) — A Democratic-controlled Senate panel Tuesday approved a $2.50 increase in airline security fees that would double the per-passenger fee for those taking nonstop flights.
From our Partners
Why Greece Isn't Leaving the Eurozone YetSlate

Weird-Mart: Tales of the Bizarre from the Walmart AislesDaily Finance
Tech Bubble Death Watch: The Facebook IPOHuff Post Business
Wall Street & Markets May 22, 2012

Stocks Rally Further in Run-up to EU Summit

MOSCOW — Global stocks enjoyed one of their best days in weeks on Tuesday ahead of a summit of European leaders that’s expected to be dominated by calls to boost economic growth.

Europe remains the focus of attention across all financial markets in the run-up to the June 17 Greek election that could go a long way to determining the country’s membership of the euro as well as the future of the single currency zone.

jomiku

I believe an underlying prejudice is part of the motivation. A town like Lawrence, MA – high 8′s – is more likely to be minority populated and there’s a significant strand in Congress that doesn’t want to “reward” what they see as a more permanent form of unemployment. They oppose what they see as a more pure social transfer and prefer instead to pick a level which they see as reflecting temporary distress. (And in this case, a level that benefits more GOP run states (!) along with the big Democrat run CA.) It’s not efficiency or a running away from efficiency but a colder political calculus aimed partly at rewarding those they see as deserving and partly at avoiding rewarding those they see as undeserving.
http://filipspagnoli.wordpress.com Filip Spagnoli

Barbara,

giving people 13 weeks extra when unemployment will certainly “lag” way behind the end of the recession (which in itself will probably take more than 13 weeks to arrive) isn’t a lot of help, but better than nothing I guess.

It’s also worth mentioning some other problems with the US system of unemployment benefits. Take a look here.
http://blogs.wsj.com/economics/2009/09/24/secondary-sources-unemployment-extension-advisors-stimulus/ Secondary Sources: Unemployment Extension, Advisors, Stimulus – Real Time Economics – WSJ

[...] Unemployment Extension: On Time’s Curious Capitalist blog, Barbara Kiviat notes that extending jobless benefits just in states with an unemployment rate over 8.5% is inefficient. “I understand that Congress is trying to triage here, but relying on state unemployment rates leads to a fairly sloppy allocation of funds. States are big places, don’t you know, and many of them come with multiple economic ecosystems. For example, under this bill, a person living in Wenatchee, Washington would get an extra 13 weeks of benefits. The unemployment rate in Wenatchee is 5.9%. Meanwhile, a person living in McAllen, Texas, where the unemployment rate is 11.6%, would not get any additional benefits. That’s because 8.9% of workers in Washington are unemployed, while 8.1% of those in Texas are.” [...]
http://www.simonvinkenoog.nl/beeld/Yogi%20-%20Annelies%20Rigter.jpg yogi

Meh, is it fair we give millions to Nebraska in the form of corn subsidies? I’m sure Congresspersons can play the tit-for-tat game all day long.
Barbara Kiviat

@Filip Spagnoli: I can’t get your link to work. Re-post it?

@yogi: Do NOT get me going on corn subsidies.
ohiopapa

Barbara, has there been a TIME article lately on the stupidity of corn subsidies? Please, shine a bright light on it!

Over on Cheapskate Blog last Friday, in response to calls for taxes on soda and fast food to improve health by lowering obesity, I responded:

“First, let’s eliminate the subsidies and the agricultural programs promoting beef and corn production, and put that money towards fruit and vegie production.

Beef prices go up to include more production costs (but still not the cost of cow methane emissions or stream pollution), people eat less of it, and more healthy food.”
jff

brilliant.

an extra 13 weeks also gets people through the doldrums of the Xmas and holiday seasons.
http://filipspagnoli.wordpress.com Filip Spagnoli

sorry, here it is again
http://www.rodgermitchell.com Rodger Malcolm Mitchell

Rep. Terry must be new in town. Doesn’t he know that all financial laws are based on formulas, which when broken down to their individual effects, are silly?

Why are you allowed to deduct only those medical expenses that exceed 7.5% of your Adjusted Gross Income? Where did 7.5% come from? And why only non-employees?

I challenge any sentient human to reveal the exact formula determining Social Security benefits, and how each variable was determined.

And then there is the formula for the outrageous tax on Social Security benefits (Didn’t we already pay taxes on the money we put in?)

Or take our tax code. Please!

Rodger Malcolm Mitchell
http://rodgermmitchell.wordpost.com
http://econoblog.info/secondary-sources-unemployment-extension-advisors-stimulus econoblog.info » Secondary Sources: Unemployment Extension, Advisors, Stimulus

[...] Unemployment Extension: On Time’s Curious Capitalist blog, Barbara Kiviat notes that extending jobless benefits just in states with an unemployment rate over 8.5% is inefficient. “I understand that Congress is trying to triage here, but relying on state unemployment rates leads to a fairly sloppy allocation of funds. States are big places, don’t you know, and many of them come with multiple economic ecosystems. For example, under this bill, a person living in Wenatchee, Washington would get an extra 13 weeks of benefits. The unemployment rate in Wenatchee is 5.9%. Meanwhile, a person living in McAllen, Texas, where the unemployment rate is 11.6%, would not get any additional benefits. That’s because 8.9% of workers in Washington are unemployed, while 8.1% of those in Texas are.” [...]
missdisplaced

They should have just extended it countrywide. All states are hurting.

I think some state Governor’s rejected the Federal Aid packages, of which UI is a part. If your state is not getting extension, check your state leaders’ records.
aha123

Hi Jomiku, I was born in Lawrence Mass! Still have loads of family there! Grew up there too! Off Jackson st! Near Methuen line! David
unemployedandmad

I am not sure if anyone on here has this information or not, but I hope you all will help spread the word, repost anywhere you are blogging, email to friends, join Facebook group if you have FB account, Tweet it if you are on Twitter.
Here is the info posted on other sites

Here is the link for the Info for Noodles 4 Nothing

http://bit.ly/UNQeR

as well as the Twitter name and the tweet to send out, or an idea of the tweet you can send out if you are on twitter.

@Noodles4Nothing on http://www.twitter.com

(this is the Tweet being sent out to anyone you can find to spread the word or just tweet it like this or of course use your own words as well)

Plz RT Helping #Unemployed Americans draw attention to Senate Bill#S1699 Plz Use ur #Noodles! http://bit.ly/UNQeR