Posted by Brian McCullough
President Bush signed a war funding bill today that included an extension of unemployment benefits.
The extension covers workers who use or have used all their unemployment benefits between November 2006 and March 2009. So, if you’ve already used your benefits, you might need to re-apply.
The part I find interesting is that this could actually be a pro-active way of reassuring people who haven’t lost their jobs yet.
Although unemployed workers receive the direct benefit of this extension, this program (like all safety nets) is really aimed at employed workers worried about their jobs. Far more people are worried about losing their jobs than will actually be laid off in this downturn – and if all these people pull back sharply on their spending, then the layoffs might become a self fulfilling prophesy. This program helps reduce the financial fear for these workers.