I ask unanimous consent that the order for the quorum call be rescinded. I come to the floor this evening to express my hope that the bipartisan effort that brought this 3-month bill to the floor can be sustained as we go forward so that…
I ask unanimous consent that the order for the quorum call be rescinded.
I come to the floor this evening to express my hope that the bipartisan effort that brought this 3-month bill to the floor can be sustained as we go forward so that we can swiftly help the 1.3 million long-term unemployed workers who were cut off from these benefits on December 28. As many of my colleagues have discovered from going back to their home States, in many cases these folks are desperate. This benefit was the difference between things we take for granted--having a car to be able to get to a job, having a cell phone so they can get a message saying they have a job interview, paying for heat in the cold weather, putting groceries on the table. For many people, this is truly an emergency.
That is why working with Senator Heller, whom I applaud for his vision, collaboration, and for his sense in terms of the difficulties of his constituents and, nationally, many people, and for his effort-- he did a superb job. What we sensed was we needed to provide relief immediately. Longer term, there are issues to address, and my colleagues have been on the floor discussing these issues, but immediately we have 1.3 million Americans, and every day many more who need help go off the rolls.
I hope we can move very expeditiously and provide at least this short-term aid. Then, of course, we have very significant issues going forward for the entire-year extension, which I hope ultimately we can resolve.
In addition to Senator Heller, I wish to thank all of my colleagues. Particularly, I thank Senators Collins, Murkowski, Portman, Ayotte, and Coats for their support, along with all of our Members of the Democratic caucus who came together.
Now we have the challenge of providing this relief and then thinking creatively, constructively, and collaboratively about how we provide this relief at least through the full year. I hope we can extend the program for the next 90 days immediately and quickly, but that other issue is certainly before us.
I understand also that my colleagues have raised issues about the structure of the program, about whether this spending--even the short- term spending--should be offset. Again, I go back to the point that we have 1.3 million Americans--and growing each day--who are looking for immediate help, not thoughtful, careful, long-term deliberation. That was the logic behind moving to a 90-day extension, getting it done, and then going forward and dealing with inherently more difficult issues for a full-year program.
We already understand that short-term lapse from the 28th until today has already had dramatic impacts on families. This is what I think my colleagues have heard, seen, and read about when they have gone home. Men and women who worked for decades, never thinking they would ever use their unemployment benefits, which they have earned since they started working, are now suddenly facing a weakened job market where there are nearly three people for every one job, where there are issues of skill training for the new jobs that are emerging. These are very difficult challenges.
I think what finally led us to at least this point of moving forward was the perception that this program is not subject to some arcane abuse by people in the system; this is for working men and women who, through no fault of their own, lost their jobs, who are desperately looking for jobs, and they are our neighbors and our constituents--many of whom we thought and they thought would never be in this predicament. They have families, elderly parents, and young children. They have responsibilities.
They have something else too, which I think we sometimes don't give enough credit for: They want to work. They have spent a life, many of them, working to a position of responsibility where they are using all of their talents. The idea that they are just going to give that up for the only available job, which might be working at a counter at a fast- food restaurant--that is a challenge not only to your pocketbook, but that is a challenge to your person, to who you are--we have to recognize that also.
These benefits are usually helpful to people in so many different capacities.
As I said, we are trying to deal with a situation where people have been let go through no fault of their own. If someone quits, they don't qualify. If they are fired, they don't qualify. Many of these people are unemployed as a result of the new economy--information technology that makes their job something that can be done away with; mergers, acquisitions, and downsizing that caused the bottom line of a corporation to grow, but they are out of a job. We have to deal with it, and we have to deal with it as we have done so many times before by providing these long-term unemployment benefits.
We also have to do it because it is good for our economy. The CBO estimates that if we do not renew UI for the full year 2014, we will lose 200,000 jobs because the weekly benefits, which are rather modest--$300 to $350 a week--go almost immediately from the recipient into the economy. It is the reason some grocery stores can keep two or three extra people on, because the demand is still there. It is the reason some service stations can keep the extra mechanic on, because the demand is still there. If we shut down that demand, we will have 200,000 more people--ironically--who will qualify, at least initially, for State unemployment benefits.
This is about our economy.
I would like to draw our attention to the report our colleague Senator Amy Klobuchar did as the vice chair of the Joint Economic Committee. It was very thoughtfully done. It is not a surprise given that it was authored in large part by Senator Klobuchar. This report touches on these important issues and notes that ``unemployment insurance (UI) has kept more than 11 million people out of poverty since 2008--including 1.8 million adults and 620,000 children in 2012 alone. People of all demographic and socio-economic backgrounds have been helped by unemployment insurance following a job loss.''
This cuts across the whole spectrum. Again, how does someone get to qualify? They have to work. I would suspect that every one of my colleagues would say this country should be all about work, rewarding work, and if someone loses a job through no fault of their own, give them a chance to get back in the workforce.
The reality of this economic downturn has been so pervasive that it has affected virtually every American. And so unemployment insurance has been a key part of the recovery. We all know that economists who have looked at this program suggest there is anywhere from a $1.50 to $1.60 benefit for every $1 we put in the economy. Economically, for the national economy as a whole, this is a very powerful tool to keep economic growth, expansion, and demand moving forward. That is exactly what we need to keep the economy growing.
Indeed, one of the aspects of this recession and one of the aspects highlighted very insightfully by the report from the Joint Economic Committee is the long-term rate of unemployment. This might be a new structural phenomenon in our economy, but definitely something is happening out there.
I will go back to when I was a kid. Someone is on the third shift because they are the junior person. The recession comes and guess who gets laid off. The third shift. The second shift, the middle people, and the first shift, the most senior people, typically weren't touched. The economy came back, and that third shift got rehired, but those workers with 10, 15 years' experience were pretty safe.
Now that is not the case. Now we are seeing first, second, and third shift gone. Now we are seeing, well, this is a great opportunity, with interest rates at in some cases 1 percent--at least for the major financial institutions--to replace a lot of workers with a lot of machines. Let's do that. Let's get value. Let's downsize. Let's make sure we invest in capital. This is the phenomenon we are seeing, and it is causing some of this significant increase in long-term unemployment.
In the JEC report, they note:
The current long-term unemployment rate of 2.6 percent is
twice as high as it was when Congress allowed emergency
federal UI programs to expire after the 1990-91 and 2001
recessions.
Let me say that in my terms. Previously, we have never taken away these benefits when long-term unemployment has been so high, and these benefits are not directly responsible for long-term unemployment. The 26 weeks of the State benefit programs is for people who lose work and find it relatively quickly. This program, the one we are debating today, is specifically designed for those people who are having a difficult time finding work over a long period of time.
We are now at twice as high a level of unemployment as we were in previous recessions when we ended these benefits, which would suggest this is not the time to end these benefits.
Let me continue from the JEC report:
While employment prospects have improved for many jobless
Americans (the national unemployment rate is 7.0 percent--the
lowest rate in five years), finding work is challenging for
the long-term unemployed. More than one-third of unemployed
workers (roughly 4 million Americans) have been searching for
work for more than 26 weeks, when state-funded UI benefits
typically run out, and 2.8 million unemployed people have
been searching for work for more than one year.
This is a phenomenon we have to deal with. This program we are discussing today is specifically designed for those long-term unemployed. So if there is one program that is responsive to one of the most salient aspects of this current recession, it is the long-term UI program because long-term unemployment seems to be the most difficult issue to resolve, even as our overall employment numbers continue to grow--not fast enough, but they are growing.
I want to also dispel the belief of some of my colleagues that these benefits only flow to one or two distinct constituencies. That this is a targeted program that provides some benefits, but it doesn't apply across the board. That is not the case. This is about every American from virtually every type of education, income, and ethnic background.
As the JEC report documents:
The 23.9 million Americans who have directly benefited from
the EUC program since 2008 include people of all demographic
and socioeconomic backgrounds . . . [I]n 2012, more than 60
percent of the recipients were between the ages of 25 and 54.
Let me stop. There is a stereotype out there that a lot of these folks are 18 year olds who had a job for a while but decided they would rather go skiing in Utah or snorkeling in the Caribbean, and what better way to do that than just essentially sort of perform so that when the layoffs come you get one--but so what, I am not going to look for work; I'm going to just go. Sixty percent of these people are 25 years old to 54 years old. They are starting the prime or are in the prime of their work career. They have responsibility. They typically have families. They have, probably, if they are in their 50s, been working for 30 years.
So this notion this is just a convenient time to take a vacation subsidized by the government is erroneous.
Let me continue from the report:
The remaining recipients were about evenly split between
those younger than 25 and those 55 and older.
Again, the 55 and older--and this is very close to home--for these people it is a desperate struggle because they are caught right in the middle. They have a 75-year-old or 80-year-old mother or father; they have 30-year-old children and some younger who are going to school or they need the help. They have been working for 30-plus years. They have reached positions of responsibility in their firm and now, suddenly, for the first time--many is the case--they are without a job. That is not just economic, as I suggested. That also goes deeply to who they are, their value, and how they can help their family if they can't work. What is the effect on the family? How do they come home every day from looking for work without a job and not have it affect the family? This is the reality we are dealing with.
That is why, frankly, I have been pleading to at least get this program restored for 90 days. That will give us the time--not on the backs of the unemployed--but give us the time to do the work for a longer extension.
Now let me continue:
More than half the recipients in 2012 were white, while 22
percent were black, and 19 percent were Hispanic. The vast
majority (85 percent) lived in households with more than one
adult, and 43 percent lived in households with at least one
child.
So these are not single transients who move around and are used to being unemployed and could work if they wanted to. These are people with real family responsibilities.
People of all levels of education have received EUC
benefits. The majority of recipients in 2012 had earned a
high school diploma, and almost one-fifth held a 4-year
college degree.
These are people that have skills. They have at least got the credentials, which, again, 20 or 30 years ago put you into the workplace and probably kept you there, if you were diligent.
So I hope my colleagues take time to review this report. It is extremely useful. It shatters some stereotypes and reinforces the point this is about helping working Americans who need help.
I think the facts are clearly on the side of continuing this program, and I think the reality is they need the help now. If we can get them that help, then we will have the time to deliberate the very serious questions that my colleagues have raised; and they have raised them constructively and raised them sincerely about the long-term approach of this program. But to continue to trade legislative ideas on the floor while millions of Americans either are losing their benefits or are seeing the end come within days, weeks or months is not the right response.
So I urge my colleagues to move forward through these procedural hurdles. Let's get this bill done as Senator Heller and I have proposed it. Let's get it done, and then we have another huge challenge because we want, frankly, and I think the sentiment is across the board--if we are going to do this, let us at least continue it through the year 2014.
We are beginning to sense some positive economic shifts. We hope those materialize. We hope they come forward to the point where the unemployment rate, which has fallen--I heard the President today say when he took over we were losing 800,000 jobs a month. It was rocketing up into the stratosphere in some states, 12 percent, 14 percent. In Rhode Island it is still 9 percent. We have seen some progress--not enough in my State, in Nevada, and other States. But we have seen progress, and we hope that progress continues.
Indeed, one of the other aspects of this program, if we pass these benefits--and the economists have pointed it out, particularly if we pass them on an emergency basis--it will add more fuel to our economy, not less. It will add more demand. It will, in fact, increase growth at a time when everyone is on the floor talking about the fact that we just have to grow more jobs. Of course we do. But this program is, in a way, the proverbial two-fer. You help people who need help, and you help the economy grow faster--200,000 jobs at least.
So I really do think we should move forward as quickly as we can to get this Reed-Heller bill completed, and then we have a lot of careful, thoughtful, collaborative effort to engage in. Because if we want to go forward for a full year, which we do, we have other significant issues--not just the size of the program, but other issues as were brought up by my colleagues, and brought up very fairly, very constructively, and very thoughtfully.
So Madam President, my message is: No. 1, I thank my colleagues for giving us the chance to seriously debate this bill, and I urge them to pass it quickly, and then we will set ourselves up for another serious, thoughtful and constructive debate. That is my wish.
With that, Madam President, I yield the floor, and I suggest the absence of a quorum.
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.