"Extend jobless benefits, and not by trimming stimulus"

 

Globe Editorial
 
THE MEAGER gain in private-sector jobs reported yesterday is further evidence that the economic recovery is weak, casting a harsh light on Congress’ failure to extend unemployment benefits before starting its Fourth of July recess. Actions by Republicans, including Senator Scott Brown of Massachusetts, to block the jobless benefits bill have already cost 1.3 million long-term unemployed Americans this lifeline. If Congress fails to act by the end of July, an additional 2 million will lose their unemployment checks.Jobless benefits play two critical roles in a struggling economy: They keep working families fed and in their homes until breadwinners can get back to work, and they generate job-creating economic activity to help keep the economy from spiraling further downward.
 

When Congress returns, Democrats should demonstrate the priority they give to aiding the jobless by peeling the benefits extension off from a package that also included an infusion of money to state governments. As much as states need the funds to avoid more layoffs and service cuts (Massachusetts has been counting on about $700 million), this provision particularly raised the hackles of deficit hawks. The money for the states is a fight worth waging — at another time. Now it is more important to get the benefit checks out.

Senator Brown has said he would vote for extended unemployment assistance if money for it came from unused stimulus funds. But yesterday’s jobs report proved that the economy needs both aid for the unemployed and the ongoing boost that stimulus projects provide as they come on line. Just this week, Massachusetts received $45.4 million in stimulus money to expand broadband access in the western part of the state where some towns have virtually no high-speed Internet service. Overall, the 2009 stimulus package includes $7.2 billion to upgrade the nation’s data networks — and, at the same time, create 5,000 construction jobs.

Clearly, not all stimulus projects were shovel-ready when Congress passed the bill last year, but that is just as well, since the economy still needs the turbo-injection of an initiative like broadband expansion. Brown is justified in his concern that extending jobless benefits will increase the deficit. In the long term, that red ink must be addressed. But job one for Congress when it returns will be to make sure the unemployed keep their benefits — and not at the cost of needed stimulus spending.

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