American 99ers Unions: "It's Time For Washington To Take A Lesson In Economics 101"

Why Extend Unemployment Insurance Beyond 99 Weeks?
It's Time For Washington To Take A Lesson In Economics 101

The American 99ers Union responds to the May Jobs Report.

Demand for labor is known as a derived demand; it is derived from the demand for a firm's output. If demand for the firm's output increases, the firm will demand more labor and will hire more workers. If demand for the firm's output falls, the firm will demand less labor and will reduce its work force.

On Friday, June the 3rd 2011 the U.S. Bureau of Labor Statistics reported that a total of only 54,000 total jobs were created in May.

On Thursday, June the 2nd 2011 the U.S. Bureau of Labor Statistics reported that as of the week ending May 28th, the 4-week moving average for new unemployment insurance claims was 425,5000.

On Thursday, June the 2nd 2011 the U.S. Bureau of Labor Statistics reported that as of the week ending May 28th, 60,000 fewer Americans were receiving extended unemployment insurance than the previous week.

We now have over 7 million Americans, the longest-termed unemployed, who have no income thus do not have the ability to spend money in the marketplace and can not play an active role in creating derived demand.

It is time Washington stop looking for places to cut spending, and focus on where to invest. Given that consumer spending accounts for 70% of all economic activity, the time is now to invest in the American People, who will in-turn invest in the American Economy and create... derived demand and get Americans back to work.

H.R.589 must be brought to the floor and passed without delay.