advertisement
Looking for something on the site? Search for it here! Also see Clark's Greatest Hits

Nov 05, 2009 -- Jobless benefits, homebuyer tax credit extended

CLARKONOMICS: The Senate has voted 98-0 to extend unemployment benefits between an additional 14 and 20 weeks for jobless Americans.

The 20-week extension will be for residents of states where unemployment is higher than 8.5 percent. (Editor's note: A complete list of these states will be added shortly.) Residents in the remaining states will be eligible for the 14-week extension.

The measure is expected to be approved by the House today and signed into law by President Obama shortly after. This move makes is so that those hardest hit by unemployment can get 99 weeks of jobless benefits, which is just shy of 2 years! The average weekly unemployment payment is around $300/week, according to Clark, though it varies greatly by location and prior earnings.

Ultimately, this is just a Band-Aid on the wound of people who want to work but can't because the job market won't bear it. As always, Clark believes an economic downturn is a great time to start your own business. Commercial space and employees both come cheap at a time like this.

Meanwhile, Congress has extended the $8,000 homebuyer tax credit through April 30. This is expected to be the final extension. In addition, there's a new expansion that will give $6,500 to existing homeowners who want to move up into another house. Income caps apply for the latter provision.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

Avg. rating: N/A

What others are saying

  • unemployment benefits
    This extension isn't for all unemployed. It's only for those that lose their regular benefit the end of 2009. If you lose your benefit 1/1/2010, you do not get this extension plus the other weeks. It's easy for those who are employed to complain. There are no jobs out there to get. We worked all our lives in which these benefits were taken out of our checks and our employers. This is not a freebie. But it's not going to get any better with the rulers we have in D.C. In fact, it's going to get worse with Obamacare. We reap what we sow.
  • Unemployment Insurance
    Who said that the Unemployment benefits were like a social program, like welfare. It is not free money. You pay part of the insurance from your pay check. It is insurance. Not Welfare. And the company also pays part or all of it.

    Anybody who is Unemployed and collecting benefits MUST show true job search efforts. They must be verified by Unemployment insurance and the claims examiner makes calls to check on these job search efforts. If they are false the claimant will be DISQUALIFIED immediatly.

    Your friend may be truly looking for work. Just because he is collecting does not mean he is home loafing while you work.

    My husband worked retail after his good job ended because his employer sold the business. The new employer did not take anyone. Retail is low pay. And there were P H D Graduates who worked as salepeople at the department store looking for work in their feild.
    They all were looking for the better pay.
  • Clarkonomics!
    I am in full agreement with you Clark, I myself have needed a "HAND UP" in the past and I grew from it but worked hard to pick myself up...too many "HAND OUTS" makes for a weak and helpless society!
  • Reply to Extensions bad overall
    I am Mr. empathy. Please admire me. I feel sorry for myself.
    boohoo
  • Unemployment
    It seems that only the employed complain about the unemployed receiving extended benefits. I guarantee you that most people who are unemployed would like to have your job. Sure there are some who might be taking advantage of the system but can you blame them? No you cannot--it is the corporations who lay you off. Not everyone can just go back to school, create another skill, start a business or find another job in a jobless recovery. Look at the facts before you judge the unemployed.
    1 job is available for 6 looking for work. That's on average in very few cities. Human Resources are complaining about mountains of resumes sent in but only 1 job was advertised.

    This is massive unemployment and I think
    the unemployed need the bail out.Be careful what you say---you might be next in the unemployment line looking for no jobs available.
  • Clarkonomics?
    Every government program, every piece of legislation, every tax credit, every extension of benefits, etc. cost money. Tax payer money. Your taxes and your children's and grandchildren's taxes will not pay off the overall deficit in their lifetimes.

    Chris is right about the government conditioning people to remain unemployed.

    Let's think outside the box - after the initial period of unemployment benefits expire, allow those unemployed to continue to receive money as a zero interest loan. They can repay the loan when they are fully employed again.

    I think this gives the individual motivation to find work while still providing the safety net. It is also fiscally responsible to future generations.
  • Extensions bad overall
    I lost my job of 8 years in late 2007, one that paid me 50k+ annually, and I never applied for unemployment benefits. Not only do I find the idea of "money for nothing" disgusting, but just 2 days after learning my fate I found a half-ass job in a unrelated field with little effort in an area with high unemployment. I make crap, but it's an income. I immediately enrolled in college being the field I knew and loved was no more. So here I am, the last almost 2 years working 9 hours days 5 days a week and going to class 4-5 hours a day 4-5 days a week, all while living as modestly as I have ever lived, I was more wealthy at 19 than I am now at almost 37. My savings is gone, mostly to college, I live paycheck to paycheck, I'm still kicking and almost finished with my degree and I have yet to collect any assistance from any entity for any reason. My rant, or point if I can call it that, is extending unemployment benefits doesn't help the majority on it to find work, it just makes that person more dependent on uncle sam and in many cases it conditions people to stay unemployed much like welfare does. I know a guy just down the road who lost his state job over a year ago, he is still somehow collecting unemployment checks that are more than I make working. There are jobs here, but, what on earth would motivate him to work for less money than what he's already collecting in unemployment? It's weird to see conservatives, especially ones in the senate, to vote in favor of a "social" program for the working class, it's just so not like them. Anyway, I'm for unemployment for people who have involuntary lost their job, but any benefits over a 6 month period is just ridiculous. If were going to do this than let's just start sending checks to everyone who isn't working and just base the amount on the area and not how much they made, to exclude those not in the unemployment system yet are still unemployed is hardly fair. Maybe start sending checks to the under-paid to, that's a group in itself that is much larger than the unemployed. Ranting.
  • Old over new anyday
    I'd prefer an older house that has been well-cared for over a new one anyday. With material and manufacturing issues these days (drywall anyone?), I'd rather take my chances on a home that someone loved and had everything working well while they lived there. I've also heard horror stories of houses "settling" with floors and ceilings separating. No thank you!

    PS My house was built in 1924 and I love it!
  • Glad to see housing prices drop, drop, drop!
    Housing in grossly inflated. It use to be, that older homes were devalued because they were OLD! The house was aging and it would cost a new owner money to keep it up with roofing, plumbing, electrical, fire-places, windows/doors and bug infestations.

    New houses cost more in the same neighborhoods because the buyer got a NEW HOUSE. No problems the house hadn't age yet.

    People usually sold the old house for a new house.

    But, somewhere along the way, people started excepting the inflated OLD HOUSE price listed by the sellers.

    Buyers don't want to dicker anymore.
  • RE: tax credit
    Dave, your townhome is only worth what someone is willing to pay for it.
  • re: matt
    they set the limit so it would be more of an incentive to new homeowners, not a bonus to people who just want the credit. so people will not upgrade from/into a home they cant afford that was financed in the last few years they made it 5 years....also i feel the 3 year limit is too easy, it should be first time homeowners period. people who havent owned in 3 years have gone from owning to renting (for some reason) and will probably try to get back to owning and once again biting off more than they can chew, just because there is a good deal with free tax credit on the table to get them in the door.
  • tax credit
    well the house passed the bill with only 12 reps saying nay...must close the deal by june 30 2010....must make less than 125k....i think it's great maybe i can sell my townhome for what its worth!!
  • Whats the point?
    I have just recently sold my house and will be buying a larger house in the near future. I have read that i will not be able to get the $6500 tax credit because i only owned my old house for 3 years. Am i correct about this? And if so, what is the point in setting the 5 year limitation on people. It seems kind of arbitrary to me.
  • You don't need financing to start a small business. Start small and expand if you do well. There are lots of business where minimal investment in equipment will allow you to go out and make a good living.
  • Start your own business
    When a person is unemployed, they are lucky if they can pay rent. How can a person get money to start a business? Yesterday, Clark asked some of us unemployed to return to school for an education in a different field. Again, HOW DO WE PAY FOR THAT?

    Advice like this is so lame. We need real jobs. And people looking for older people as reliable. Not "OLD" and useless.
send to a friend  view as printer-friendly  RSS feeds
advertisement
advertisement
THIS WEEK'S POLL
advertisement