Covid

MASKING SAVES LIVES

Sunday, November 16, 2008

NYTimes Stupid Question: "Will the Safety Net Catch Economy’s Casualties?"

Note the description of advocacy groups "churning out reports" calling for more support for poor Americans. Didn't the NYTimes churn out reports supporting Wall Street billionaires?

Portion below; whole thing here: Link http://www.nytimes.com/2008/11/16/weekinreview/16greenhouse.html?hp

Economists say that it is sometimes hard to determine whether certain social programs fuel recessions or fight them. As 1.2 million workers have lost their job this year, for instance, many have turned to Medicaid, causing some states to spend more on health care, boosting the economy in the process. At the same time, some cash-strapped states have cut Medicaid, losing federal matching funds and slowing down the economy.

Some see a similar effect with the Earned Income Tax Credit. “The E.I.T.C. is a fantastic wage subsidy program that’s been hugely effective in reducing poverty, but when jobs disappear, the E.I.T.C. doesn’t help you,” said Jared Bernstein of the Economic Policy Institute, a liberal research group. He was one of the economists invited to a meeting of President-elect Barack Obama’s top economic advisers on Nov. 7. “When people lose their jobs, they often stop receiving E.I.T.C., and I fear that the program becomes less countercyclical and more pro-cyclical, meaning it reinforces recessionary forces,” he said.

The president-elect is on record in support of an economic-stimulus package and extending unemployment benefits. But many advocacy groups are churning out reports and position papers urging him to take further steps to enhance jobless and welfare benefits.

Rebecca Blank, a senior fellow at the Brookings Institution, noted that the recession of 2001 hurt factory workers most but had little effect on the low-wage jobs that many women hold.

“But this recession is really hitting those jobs, and the question is what will happen to that group of women. Is there a safety net?” she asked. Ms. Blank complained that low-wage-earning women often failed to qualify for unemployment benefits because many states do not provide such assistance to part-time workers or those who fail to work six quarters in a row.

“The other safety net for this group of workers is the traditional welfare program,” Ms. Blank said. “On that front, the news is not promising at all.”

No comments: