Unemployment Forever

The proposed tax deal is one of those classic bitter pills that we’re presented with in American politics.

It’s a classic compromise. Democrats have to swallow the extension of the Bush tax cuts on the wealthiest Americans. Republicans have to agree to a 13-month extension of Unemployment benefits without paying for it. The two parties have agreed to split the difference on the Estate tax, with it coming back in 2011, however at a lower rate and a higher income threshhold.

For me, the 13 month extension of Unemployment benefits really is a bit of a bridge too far. It would be one thing if it were paid for with unused stimulus funds. Even then, it really takes a step towards making unemployment an entitlement.

The 13 month timeframe is political. That way when the benefits do expire in January, 2012, no one accuses the Republicans of being “The grinch who stole Christmas” with this year’s unfortunate timing of unemplolyment benefit expiration. Under this plan, that particular metaphor will be out of style when folks are forced off unemployment after only 2 1/2 years more than they were entitled.

If this goes through, Republicans should work in the next Congress to attach some additional requirements to unemployment benefits for those who are beyond their 26 weeks, such as requiring them to work for non-profits or their local governments for 10 hours free a week. Not only would this help to fill some of the gaps in this tight economic times. It would create a sense of usefulness that long-term unemployment often undermines.

Of course, whether this goes through or not is an open question. Michele Bachmann has indicated that the GOP may have problems with the plan due to the unemployment and Senate Majority Whip Dick Durbin (D-Ill.)  stating that Senate Democrats may walk.  However, for both sides, this may be the best deal they can hope for.

Read more at Adam’s Blog