In unemployment, emergency benefits to extend 99 weeks (almost two years) of unemployment benefits are running out or for some 4 million to 5 million people from December through April. This is proof positive that we are on the cusp of a deepening poverty at the very moment of political stalemate.
Rosenberg [David Rosenberg of Gluskin-Sheff] says government handouts are responsible for 20% of disposable income in the country, so pray for the stability of the Social Security system. In personal Income, this loss of unemployment benefits means a loss of income equal to about $300 a week, or about $80 billion totted up, unavailable for consumption.
There’s a way out — an end to big projects in small towns, an overall reduction in government spending, a return of most savings as lower taxes, with other reductions reallocated to genuine need rather than showy efforts and bureaucrats’ positions and salaries.
Via Nitty Gritty Numbers Suggest Downward Spiral – Forbes.com.