Unemployment Benefits Extended For a Maximum of 99 Weeks

Friday, President Obama has signs a bill extending unemployment benefits on the same day that the Labor Department announces that the US Unemployment rate hits 10.2% in October. For the first time in over 25 years the nation’s jobless rate swells to double digits. This new bill is the latest attempt by Congress to spur the economy in a variety of ways by pumping more money into the economy. The Senate unanimously voted and the House overwhelming voted on a $24 million program which mirrors another stimulus package. This package extends the $8000 tax credit for first time home buyers that was part of the last stimulus package and expands unemployment compensation giving some workers 99 weeks of benefits. The current bill extends benefits for all those who have exhausted their federal unemployment aid by 14 weeks. This is the most in US history. Economists believe that there are some unintended consequences like slowing down recovery by reducing the incentive of some to find a job.