Published at Truthout, December 2013.
Research on the effects of long-term unemployment benefits on the economy shows that for every dollar the government pays out, the economy benefits to the tune of $1.60. As people on benefits spend them on food and other supplies, they stimulate their local economies, engage local businesses and keep their communities economically functional. Without these benefit funds in the economy next year, already depressed and struggling communities could face even more problems, leading to a spread of economic depression including a surge in the unemployment rate as companies are forced to let people go. Thus, the refusal to extend benefits could have a long-term ripple effect with seriously negative outcomes.