Wednesday, July 21, 2010

Permanent Underclass

Sure, Mr. Obama's ostensible purpose was to lobby Congress for the eighth extension of jobless benefits since the recession began, to a record 99 weeks, or nearly two years. And he whacked Senate Republicans for blocking the extension, though Republicans are merely asking that the extension be offset by cuts in other federal spending.

But Mr. Obama was nonetheless obliged to concede that, 18 months after his $862 billion stimulus, there are still five job seekers for every job opening and that 2.5 million Americans will soon run out of unemployment benefits. What happens when the 99 weeks of benefits run out? Will the President demand that they be extended to three years, or four? (WSJ, 7/21/10)

A few words on extending unemployment benefits. We are sympathetic to anyone who has lost their job and is struggling to make ends meet. Here is the Democrat solution: continually pass extensions of benefits creating a permanent class of unemployed, beholden to government… and to Dems. Here is the Republican solution: spur economic development by lowering taxes and regulatory hurdles enabling business to grow…and hire more workers. The distinction could not be clearer.

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