Unemployment Extension: Why COBRA Will Never Make It

By Janet Peterson on August 16, 2010, 8:20 am Posted in Business News

Everyone knows that the congress did not vote to extend the COBRA health insurance subsidy when it agreed to extend unemployment benefits for up to 99 weeks. The measure itself, was a compromise between the Republicans and the Democrats, but the political failure to pass the bill has deeper implications. And more importantly, not passing the bill may have been the right thing for the Senate and the House of Representatives to do in the long term.

Why Didn’t COBRA Make The Cut

The reason the health insurance extension died but unemployment benefits did not is directly related to the sources of the funding. Republicans wanted to use the unused stimulus funds; Democrats wanted to borrow money from China. Because of the mounting national debt, Republican congressman opposed borrowing more money from any source. Foreign sources only helped cement the decision. While many Americans have found their insurance cut in the long run, refusing to borrow money keeps the congress adding from a growing problem.

Not Extending COBRA Won’t Make Much Difference

People on both sides have criticized previous administrations for their deficit spending. President Bush took it to new levels, as did Reagan, Carter, and Lyndon B. Johnson. Clinton, for a short time, managed to bring the numbers down. The massive stimulus programs have caused the national debt to go far beyond even what the experts were predicting at the end of the Bush administration. Reigning in the tendency to borrow will not do much to balance the debt. It must also be balanced by reducing spending.

 

The failure to extend the economy will not do much to help the economy, despite the rhetoric on both sides. The credit crunch caused the slow down in business spending, and the Obama’s attempt to take over the economy and its failure to extend the Bush tax cuts have only served to make the current situation worse.

Related posts:

1. No COBRA Subsidy Extension & Expiring Bush Tax Cuts Will Do Damage
2. Unemployment Extension Benefits, Tier 5 & Cobra – Latest Update
3. Unemployment Extension Bill Passes: Who Is Eligible
4. Unemployment Extension Bill: What It Does And Doesn’t Have In It
5. America’s Voice: Congress, You Can’t Spend Yourself Rich!

One Response to “Unemployment Extension: Why COBRA Will Never Make It”

1. Thomas O'Mara says:

   November 16, 2010 at 6:08 pm

   That’s great so most of the 50 and older workforce, that got pushed out of work due to all our manufacturing and the small amount of high end jobs included that went with them all. So by droping the Cobra extension my rates will go up and that 500-????? dollars that was being put into the economy(groceries, clothes, misc) will disapear, how this ends up being a good thing is beyond my realm of thinking