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  •  Unemployment Insurance ends abruptly for 2 million (0+ / 0-)

    Most of the effects of "going over the cliff," are really more like "going down the slope."  However, for one group of over 2 million citizens, "over the cliff" will trigger immediate disaster, and its repercussions will affect the entire weak recovery.

    Unless the compromise bill being hammered out right now by Reid and McConnell is passed by both houses and signed by Monday, At midnight on 12/31/2012 ALL federal Unemployment Insurance payments (EUI) will cease abruptly.  This will leave over 2,000,000 citizens literally penniless at a tick of the clock.  Not is this a massive moral tragedy to allow this to happen to our own citizens, but it means the immediate loss of over $3.5 BILLION in consumer spending each month.  That works out to over $40 billion in 2013 alone. Nobody is more likely to put every penny received right into the private-sector economy than those desperate job-seekers surviving on minimal UI checks.  This loss will almost immediately affect the entire economy, which is basically in trouble not for high deficits or run-away spending or the GOP's magical "confidence fairy," but because there simply isn't enough consumer demand to cover the goods and services business already has and can't sell.  Rising demand will result in more hiring and more expansion to meet new needs.  Anything that takes money away from consumers will contract demand, causing companies to lay off even more workers and send even more jobs abroad, seeking foreign emerging middle-class markets.

    To make things even worse, nobody is sure that, after going off the cliff, it will be possible to re-establish these peoples' insurance where it left off.  To make things EVEN WORSE, an estimated 1 million more unemployed will run out their initial benefits in the next two or three months and there will be no EUI waiting to exend their benefits.  So, add 50% to all above losses.

    If this is allowed to happen, John Boehner, Eric Cantor, Mitch McConnell, Paul Ryan, and all of the Tea Party members and sympathizers will go down in imfamy as the most hated and reviled people of our generation.

    "When plunder becomes a way of life for a group of men living in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." --Frederic Bastiat, French writer and economist, 1850

    by Beartooth Bronsky on Sat Dec 29, 2012 at 02:05:16 PM PST

    •  Except for the loss of UI, (0+ / 0-)

      the fiscal event is more like coming to a fork in the road.

      You can't keep a mighty tree alive (much less expect it to thrive) by only spritzing the fine leaves at its tippy-top. The fate of the whole tree depends on nurturing the grassroots. - Jim Hightower

      by PSzymeczek on Sat Dec 29, 2012 at 02:12:39 PM PST

      [ Parent ]

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