1.3 Million Americans to lose Long Term Unemployment Benefits on Saturday, December 28th, including 300 Maverick Countians

By: Ricardo E. Calderon
Copyright 2013 Eagle Pass Business Journal, Inc.

An estimated 1.3 million Americans are losing their federal long-term unemployment benefits effective Saturday, December 28, 2013, as a result of a Budget agreement by Congress before the Christmas holiday break, including up to 300 Maverick Countians who may be affected.

The loss of billions of dollars to long-term unemployed Americans will cause a significant impact to the United States economy as well as to each local and state economies as less money will be available to spend respectively in local and state economies.

Long-term federal unemployment benefits were introduced in 2008 by then President George W. Bush to off-set the detrimental economic impact of the recession then and have been continued until now. Regularly, states will pay unemployed workers up to 26 weeks of unemployment benefits, but under the federal long-term unemployment benefits are extended up to 73 to 99 weeks depending on each state.

The Congressional Budget Office estimates it would cost up to $19 Billion to extend federal long-term unemployment benefits for 47 weeks in 2014.

President Barack Obama and key Democratic Congressmen and Senators are working to get Congress to address extending the long-term unemployment benefits to these 1.3 million workers upon their return to Washington, D.C. in January 2014 from their current Christmas break. Republican Tea Party Senator Rand Paul opposes extending the federal long-term unemployment benefit program.

Maverick County is expected to have between 228 to 300 local residents who will lose their federal long-term unemployment benefits effective Saturday, December 28th. Eligible recipients may qualify up to $1,166 per month of federal long-term unemployment benefits, If one multiplies $1,166 times 300 (the estimated number of Maverick Countians who will lose their benefits), the total amount of money that will be lost to the Maverick County economy is going to be $349,800 per month effective Saturday, December 28th. These 300 Maverick Countians will no longer have this money to spend in the local economy. According to economists, for every one dollar spent in the local economy it has an eight-fold economic impact. Thus, the economic impact of the loss of these 300 Maverick Countians’ federal long-term unemployment benefits is going to be $349,800 times eight totaling $2,798,400 per month. Local businesses, stores, and governmental entities will definitely feel the economic impact on the loss of an estimated $2,798,400 per month effective December 28th when the federal long-term unemployment benefits are scheduled to be terminated.

Texas is one of the top 10 states in the United States with the most number of people scheduled to lose their federal long-term unemployment benefits with 68,900 immediately losing their benefits on December 28th and another 106,900 Texans will lose their benefits during the first half of 2014 unless Congress extends the benefits.

Senate Majority Leader Harry Reid (D-Nevada) is seeking to get Congress to extend the federal long-term unemployment benefits for up to three months as soon as Congress returns on January 6, 2014 from their Christmas break. Unless Congress renews and extends the federal long-term unemployment benefits, the loss of these benefits will significantly affect the U.S. economy and political elections in 2014.