As Many As 1.3 Million Americans Are About To Lose Their Jobless Benefits This Week, The Unemployment Rate Will Likely Surge To 10.5%
Posted By thestatedtruth.com on June 27, 2010
A critical bill to extend unemployment benefits that was unable to pass congress last week will likely have lingering effects going forward. This will be a big hit to Americans spending as 1.3 million unemployed Americans will have lost their assistance by the end of this week. Beginning in July, there will be $2.4 billion less spent each month by America’s jobless.
As we reported on Friday, a critical bill that was unable to pass this past week was the extension of unemployment benefits to millions of Americans currently collecting an average $1,200 monthly stipend from the US government. Some are just sitting on their couch and not paying their mortgage. As a result of this huge hit, the WSJ reports that “a total of 1.3 million unemployed Americans will have lost their assistance by the end of this week.” Furthermore, the cumulative number of people whose extended benefits are set to run out absent this extension, will reach 2 million in two weeks, and continue rising: as a reminder the DOL reported over 5.2 million Americans currently on Extended Benefits and EUC (Tier 1-4). The net result is yet another hit to the US ledger, as soon 2 million Americans will no longer recycle $1,200 per month into the economy. In other words, beginning in July, there will be $2.4 billion less spent each month by America’s jobless.
More at: www.zerohedge.com
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