The saddest part of all this is that extending unemployment insurance for those that desperately need it will not add significantly to long-term deficits. In fact, extending these benefits is not only the humane thing to do, it is the sensible thing to do for our economy. You see, these benefits give millions much-needed funds to pump into the economy.

With that in mind 33 leading American economists have sent a letter to anyone in government who will listen explaining why it is such a bad idea to take what little spending power the long-term unemployed have left away from them. Their statement sums it up in terms even a Republican can understand:

Continuing the about-to-expire federal emergency unemployment insurance program, which provides extra weeks of benefits to the long-term unemployed, is sensible economic policy that will not only assist the unemployed but help maintain spending, overall demand, and employment at this critical point in the recovery.

Given that there remains a historically high number of unemployed workers per job opening, there is no danger that continuing to provide extended unemployment insurance will materially raise overall unemployment. Eliminating these benefits, on the other hand, will cause hardship for the long-term unemployed, scale back spending, and weaken the economy since unemployment benefits are one of the most effective means available to support overall demand. Unemployment has remained above 9.0% for 18 months already and will likely remain high for some time to come, making a strong case for continuing the current program for another 12 months. Moreover, the special provisions for extended unemployment insurance during recessions
have traditionally been financed by short-term fiscal deficits and this remains a prudent approach.

The program will not contribute significantly to long-term deficits because its costs will diminish automatically as the economy recovers and unemployment returns to more normal levels.

http://www.epi.org/...

Despite this, Republicans are determined to destroy our economy yet again. Why?? Because they only want one group of folks to have any spending power, the very rich. Of course it helps when they can count themselves among that number. You see, while Republicans are determined to cut off this lifeline to workers who lost their jobs due to Republican policies of greed they are more than happy to extend their own huge tax cuts.

Even worse, these tax cuts unlike the unemployment benefits millions need will add greatly to our country's long term deficits. In fact they already have:

The "Bush tax cuts," passed in 2001 and 2003, remain the single largest cause of America's structural deficit -- that is, the deficit not caused by the collapse in tax revenue when the economy goes into recession. The Bush administration inherited budget surpluses from the Clinton administration. What turned these into deficits, even before the recession? There were three fundamental new costs: the tax cuts, the Medicare prescription-drug bill and post-9/11 security spending (including the wars in Iraq and Afghanistan). Of these the tax cuts were by far the largest, adding up to $2.3 trillion over 10 years. According to the Congressional Budget Office, nearly half the cost of all legislation enacted from 2001 to 2007 can be attributed to the tax cuts.

The simple facts are these: All of the Bush tax cuts were unaffordable. They were an irresponsible act of hubris enacted during an economic boom. Conservatives thought they would force us to shrink the government. But with Republicans controlling the White House and both houses of Congress, did reduced taxes cause reduced spending? No. They led to ever-increasing borrowing and a ballooning deficit.

http://www.washingtonpost.com/...

Even worse is the fact that the Bush Tax Cuts did very little at any time to ever stimulate the economy. The only real thing it did was starve the government of funds as the rich horded the money. Of course, with the "starve the beast" mentality Republicans display in trying to cut off programs that help the most helpless of our society, it accomplished its goal:

The truth is that there is virtually no evidence in support of the Bush tax cuts as an economic elixir. To the extent that they had any positive effect on growth, it was very, very modest. Their main effect was simply to reduce the government’s revenue, thereby increasing the budget deficit, which all Republicans claim to abhor.

No Reaganites praised the Bush plan; all favored something much bolder, such as the flat tax proposal that was being promoted by publisher Steve Forbes, who was challenging Bush for the Republican nomination. Rather than defend his proposal as one that would increase growth, Bush argued that its main purpose was simply to deplete the budget surplus, which had grown under President Bill Clinton to $126 billion in 1999. Surpluses were dangerous, Bush and his advisers repeatedly warned, because Congress might spend them.

Subsequent analysis showed that the rebate had virtually no stimulative effect, exactly as economic theory predicted. By and large, people saved the rebate rather than spend it. And the saving didn’t even do any good because the deficit, which is negative saving, increased by the same amount. In any case, the economy continued to deteriorate and unemployment rose sharply despite the tax cut.

Harvard economist Dale Jorgenson, who is highly respected by supply-siders, put it more succinctly. When asked by The New York Times last year to name some positive aspects of Bush’s economic policies, he replied, "I don’t see any redeeming features, unfortunately."

http://www.thefiscaltimes.com/...

Unfortunately elections have consequences and America is getting what they voted for. While the Republicans will have no problem letting the spending power of the unemployed die citing the deficit they will then in turn argue for the Bush Tax Cuts to be extended to the wealthy. This will continue to run our deficit to the moon, will not stimulate the economy and in fact will give Republicans ammunition for their real goal.

Stealing the Social Security of millions. Making sure sick children and their working parents cannot see a doctor. Bankrupting programs that help those left behind by the policies of the last thirty years. Denying working-class children a chance to go to college. The list goes on and on.

As long as working Americans allow these millionaires in Congress to continue huge tax cuts for themselves while simultaneously cutting off the lifeline of those who have paid the price for those tax cuts and their drag on the economy and our deficit nothing will change. Our economy will not recover because so few people will have the power to make it do so. Of course this is what Republicans want. They want only a few of us to have disposable income and they could care less what happens to the rest of us.

In this context I guess you could say these Tax Cuts have been very successful in doing what the Republicans wanted. Hording the money at the top while the economy crashed, unemployment skyrocketed and the working-class suffered and bailed out the rich with tax dollars. As always it is a sad thing in this country when Republicans get what they want. Let us hope we do not make the same mistake again.