"With unemployment claims reaching their highest levels in decades, states are running out of money to pay benefits, and some are turning to the federal government for loans or increasing taxes on businesses to make the payments," Jennifer Steinhaur said.
Indiana has already had to borrow from the government and Ohio is close to having to do the same. Unemployment has reached a height not seen since 1982 and many states have not kept a fund to prepare for high unemployment. A major reason for the problem is that some states have not increased their taxes to fund unemployment benefits.
2 comments:
I heard something about that on the radio this morning, that recently more states had run out of unemployment benefits... Ohio is reportedly still safe, but barely. What is the solution to this problem, and why is this not in the spotlight more... Clearly more borrowing is an option, but is certainly never a good one.
If we don't want to borrow or to raise taxes, the only option is to cut benefits. It is horrible but we all should have to make sacrifices in this economy and if we can't pay the unemployment benefits and we don't want to raise taxes or borrow more then something has to be cut.
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