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Is A Tier 5 Necessary?

Tier 5

Have you exhausted 99 weeks of benefits?

Are you recently unemployed, and only eligibile for 26 weeks of benefits?

Would a “Tier 5″ of Emergency Unemployment Compensation helpful you?

Thousands of Americans have received the maximium number of unemployment benefits in their state, and are asking “What Next?”

Let’s look at both sides of the Tier 5 debate:

People against a Tier 5 argue the following:

  • The country can’t afford it. An additional unemployment extension would increase the Federal deficit and the national debt.
  • 99 weeks is enough. With regular benefits lasting only 26 weeks, tier 5 opponents argue that at 99 weeks, unemployment recipients are already getting nearly 4 times the regular amount.
  • More benefits sends the wrong message. Those against a tier 5 (and unemployment extensions in general) think that extending benefits encourages people to not work.

Here’s what Tier 5 supporters have to say:

  • Government can afford it. With billions of dollars of government money to bail out the banks and fund foreign wars, the government has the ability to financially support a tier 5 extension.
  • The economy requires it. Many “99ers” argue that they are actively looking for work, but in an environment where there are 6 applicants for every 1 job opening, the math just doesn’t work.
  • Government should watch out for its people. This was the reason that unemployment benefits were created in the first place — to create a social “safety net”.

What is your view on a Tier 5 extension? Feel free to leave a comment below.