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Senator Murray Sends Letter Urging Extension of Unemployment Benefits

(Washington, D.C.) – Today,
U.S. Senator Patty Murray (D-WA) joined 28 Senators in sending a letter to
Senate Majority Leader Harry Reid and Finance Committee Chairman Max Baucus
urging the reauthorization of current federal unemployment benefits, which are
due to expire tomorrow, November 30th. According to the U.S.
Department of Labor, if Congress does not pass an extension of unemployment
benefits, 6 million workers would be without benefits by April 2011.
Additionally, if Congress does not vote to extend the benefits, it will be the
first time in recent decades that the United States has stopped providing
emergency benefits to the unemployed during a recession.

“With
nearly 15 million Americans unemployed and the number of unemployed expected to
remain high beyond 2011, a long-term renewal of the Emergency Unemployment
Compensation program and full federal funding of the Extended Benefit programs
are necessary to keep our economy on the road to recovery, as well as to keep
food on the table and a roof over the head of families across America,”
the Senators wrote.   

The
letter was signed by Senator Patty Murray, Senator Daniel K. Akaka, Senator
Mark Begich, Senator Barbara Boxer, Senator Sherrod Brown, Senator Roland W.
Burris, Senator Benjamin L. Cardin, Senator Robert P.
Casey, Jr., Senator Christopher J. Dodd, Senator Dianne Feinstein, Senator Al
Franken, Senator Kirsten E. Gillibrand, Senator Tom Harkin, Senator John F.
Kerry, Senator Amy Klobuchar, Senator Frank R. Lautenberg, Senator Patrick J.
Leahy, Senator Carl Levin, Senator Robert Menendez, Senator Jeff Merkley,
Senator Barbara A. Mikulski, Senator Jack Reed, Senator John D. Rockefeller IV,
Senator Bernard Sanders, Senator Jeanne Shaheen, Senator Debbie Stabenow,
Senator Tom Udall, Senator Sheldon Whitehouse, and Senator Ron Wyden

Full text of the letter is below:

November
29, 2010

The
Honorable Harry Reid
Majority
Leader
United
States Senate
S-221,
U.S. Capitol
Washington,
DC 20510

The
Honorable Max Baucus
Chairman,
Finance Committee
United
States Senate
511
Hart Senate Office Building
Washington,
DC 20510

Dear
Majority Leader Reid and Chairman Baucus,

We
are writing to urge a reauthorization of the current federal unemployment
benefits programs through December 31, 2011.  As our nation continues to
battle high unemployment rates, we must act immediately to continue vital
safety net coverage for those most in need.

With
nearly 15 million Americans unemployed and the number of unemployed expected to
remain high beyond 2011, a long-term renewal of the Emergency Unemployment
Compensation program and full federal funding of the Extended Benefit programs
are necessary to keep our economy on the road to recovery, as well as to keep
food on the table and a roof over the head of families across America. 

For
the past six decades, Congress has provided federally funded unemployment
insurance benefits during every recession.  Further, federal unemployment
insurance benefits have always been provided until the economy was on a stable
path of growth.  In fact, the highest unemployment rate at which federally
funded unemployment benefits were not extended was 7.2 percent. 
Currently, the national unemployment rate is 9.6 percent.  At the current
rate, without a reauthorization, we would cut the life line that millions of
Americans use to stay afloat.  Equally importantly, we would endanger our
fragile economic recovery by reducing the amount Americans spend on groceries,
utilities and other basic needs.  A reduction in consumer spending would
cause a direct negative impact on the economic recovery.  Goldman Sachs
has estimated that if federal unemployment benefits are allowed to expire,
growth would fall by half a percentage point.  An end to this vital safety
net program would not only harm millions of Americans, it would also be
counterproductive in spurring economic growth.

According
to the U.S. Department of Labor, if Congress fails to take action, two million
workers will lose their unemployment benefits this December.   Each
month after that, over 1 million more would fall off the rolls, and by April
2011, 6 million workers would be without benefits.  When there is a single
job for every five unemployed workers, ending federally funded unemployment
insurance programs will only send more Americans on the path to poverty. 

We
understand the fiscal concerns that arise when debating a continuation of
unemployment insurance programs.  However, a broad spectrum of economists
has stated that these benefits have a significant stimulative effect and a
greater impact on gross domestic product than most other federal
programs.  In fact, the Economic Policy Institute has stated that an
extension of federally funded extended benefits would increase gross domestic
product by 0.7 percent and save or create the full-time equivalent of 723,000
jobs.  A U.S. Department of Labor report, commissioned during the Bush
Administration, has found that unemployment benefits during the most recent
recession saved 1.6 million jobs per quarter, lowered the unemployment rate by
1.2 percentage points, and reduced the decline in gross domestic product by
18.3 percent.  Based on this information, now is not the time to end
federally funded unemployment benefits.

Federally
funded benefits will begin to expire on November 30th.  Due to the
impending date, we request action be taken immediately to reauthorize these
important benefits through December 31, 2011.  We thank you for your
consideration of our request.  As we recover from the worst recession
since the 1930s, we are committed to ensuring our constituents are able to
properly provide for their families.    

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