It seems that the latest extension of unemployment benefits could not come at a better time. The president has signed an additional fourteen to twenty weeks of benefit extension for people who have already exhausted their unemployment insurance or will do so at the end of the year.

The fourteen weeks extension are for all Americans in all of the states who are facing benefit exhaustion before the year ends and the twenty weeks extension are for those who live in areas with 8.5 percent or higher unemployment rate. This means that a person in one of these areas will now receive up to ninety-nine weeks or over two years to avail of unemployment insurance.

In order to pay for the additional unemployment insurance, Congress extends the payroll tax on employers that are set to expire at the year’s end. Nevertheless, some advocacy groups insist that even the benefits extension may not even be enough for half of the unemployed to get new jobs. With the extension, some economists point out the pitfalls of extending the benefits further. The claim that people would be encouraged not to find work but instead make use of government subsidies. However, some also claim that extending the benefits allow people to meet their mortgage dues and their necessary living costs and put money back to circulation in a recovering financial market.

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