Thursday, February 23, 2012

Cuts to unemployment benefits likely to hurt economic growth in Georgia

The impacts of State Senate Bill 447 Via Better Georgia:

Senate Bill 447 would be a sharp increase in the number of Georgians living in poverty.

The bill would cut unemployment insurance in two ways:

  1. The state would impose a waiting week which eliminates one week benefits for half of all recipients; and
  2. Reduce the number of weeks a person could receive unemployment insurance benefits.

If passed, the maximum length of unemployment benefits would change to a sliding scale of 12 to 20 weeks from 26 weeks.

This would be less than any other state in the country. This is terrible for the families who will now lose their safety net. It’s also terrible for Georgia’s economic growth.

As the unemployed spend their relatively meager unemployment benefits, that money ripples through the economy, supporting other workers and businesses. Taking that demand away will lead to drops in consumer spending.

It’s shame that our lawmakers don’t know that the most of Georgia’s 500,000 unemployed adults aren’t sitting at home collecting government checks by choice.

Granted the GOP in Georgia don't even grasp the most basic reasons the economy crashed to begin with; not to mention why its been slow to revive, so its no surprise they are pushing policies that will undermine our long term growth.

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