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Rep. Pallone Says Unemployment Benefits Help Economy

12-27-13

Unemployment benefits expire tomorrow, impacting 90,000 people in New Jersey, and Rep. Frank Pallone told NJTV News Senior Correspondent Desiree Taylor that he believes that programs like unemployment benefits actually help the economy.

Pallone said the reason for this expiration is that there was no enough support in the house and that a lot of this had to do with Republican opposition.

“There is this notion out there, that I think is false, that is somehow the recession is over, it’s easy to find a job, and the people that are on unemployment don’t need it anymore and nothing could be more far from the truth,” Pallone said.

He said that debt is at its all time low since the 1990′s and debt is the immediate problem right now.

Pallone said that when 90,000 lose their benefits tomorrow, they will only receive 26 weeks of state benefits. He estimates that if nothing is done about this in the next six months, there could be another 90,000 in New Jersey that will run out of benefits because there state benefits will end.

“We know that the money that goes for unemployment is spent right away and the economy is fueled by spending. Unemployment benefits just fuel spending. This is something that helps the economy in the long run and will bring more tax revenue in and create more jobs,” Pallone said.

With food stamps and SNAP also being cut, Pallone said that also does not make sense.

“A lot of people are hurting and the spending on these initiatives actually do help the economy,” said Pallone.