Unemployment Insurance Keeps Middle Class Families Out of Poverty

As Arthur Delaney reports, CBO just came out with analysis that shows unemployment insurance kept an extra percent of the population out of poverty last year (which would work out to be around 3 million people).

Extended unemployment insurance put in place to fight the recession prevented the poverty rate from rising to 15.4 percent in 2009, a level unseen since the 1960s, according to the Congressional Budget Office. The government announced in September that that the 2009 poverty rate had risen to 14.3 percent from 13.2 percent the previous year.

But that’s not the most interesting part of this analysis. In addition, CBO noted that middle class families are much bigger beneficiaries of extended unemployment insurance than the poor; those making 200% of the poverty level received 70% of the unemployment benefits in 2009.

In 2009, about 14 percent of families had income below the federal poverty threshold; those families received about 8 percent of total UI benefits paid out during the year. In contrast, 67 percent of families in 2009 had income more than twice the poverty threshold; those families received about 70 percent of total UI benefits. The higher-income families received a larger share of benefits for several reasons: because only people with sufficient recent work histories qualify for benefits, benefit levels rise with previous earnings, and receiving benefits tends to push families into higher income groups.

Now, frankly, given the ridiculously low poverty guidelines, 200% of the federal poverty threshold is still pretty damned poor. But the point is, UI is not about a bunch of poor people suckling at the federal teat. It’s about keeping families from slipping into poverty.

Nevertheless, the GOP will continue to mobilize classist and racist narratives to make sure this useful benefit is not extended.

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  1. BayStateLibrul says:

    That’s why I would never vote for a Republican, it’s in their blood,

    the selfish gene.

    Long live the Dems!

  2. rkilowatt says:

    In California, to qualify for Ext.Unenpl Bene’s, highest quarter earnings must be at least 40 times weekly benefit paid on your regular State unempl.

    E.g. if your reg weekly bene was $450 [which is the max] and your regular claim ended, then you must have earned at least $18,000 in your highest quarter to qualify for Ext bene’s [40 x 450 =18k].

    So no surprise mid-class+ sucked in the lion’s share.

  3. hijean831 says:

    It’s about keeping families from slipping into poverty.

    Nevertheless, the GOP will continue to mobilize classist and racist narratives to make sure this useful benefit is not extended.

    Because they don’t see the first part as a win.

    • TalkingStick says:

      Because they don’t see the first part (“It’s about keeping families from slipping into poverty.”)as a win.

      Especially single parent (mother) families, hopefully dark skinned.

    • liberaldem says:

      Since the GOP only cares about millionaires, of course they don’t give a rat’s ass about anyone below that income level.

  4. magnet48 says:

    I’ve been receiving EUI since I lost my job in 04/2009.

    What with the extra $25.00/week expressly from the federal gov’t as part of the stimulus and the tax cuts we received, my husband and I made more money than ever (even though it was less than $75,000) and still got a generous refund.

    Needless to say, under BushCo we always owed at the end of the year.

    We would really have been hurting without the UI benefit;in fact, we probably would have lost the house to foreclosure…

    and my idiot republican husband can only complain about Obama&theDems, and just doesn,t see how much he was able to benefit.

    It really is a futile undertaking to convince someone without a thought process he can call his own.

  5. nailheadtom says:

    Nobody seems to understand that UI is actually MI and CLI, that is mortgage payment insurance and autombile loan insurance. Mortgage companies and car financing firms LOVE unemployment insurance, as do retail sales companies that know that the seasonally employed needn’t bother to save anything out of their paychecks for slack times, they’ll be eligible for unemployment.

  6. captjjyossarian says:

    People that hit the end of thier UI should be offered a productive job by the government. By that point it’s clear that private industry has utterly failed.

  7. aious says:

    The fact that Republicans feel that people STAY UNEMPLOYED so that they can get these benefits shows how moronic and clueless they are with the public and specifically these benefits

    Idiots