THE PUBLIC MIND: AMERICANS CAN'T EXPECT $1 WORTH OF GOVERNMENT FOR 80 CENTS

Dear Editor:

Unemployment compensation and other things

With the current Congress/Administration wrangle over extending additional unemployment benefits, it is important that there is an understanding among us about Unemployment Compensation.

Unemployment Compensation is NOT welfare. Each qualifying employer in the 50 states contributes to the Unemployment Compensation Trust Fund and builds up a balance from which claims are paid. Contributions are made on the basis of a percentage of payroll set down by each state. The fund is held nationally and is disbursed under individual state policy and over-arching policy of Congress and the Administration.

There is an additional fund (Federal Unemployment Tax Act, FUTA) that is collected from employers on a much smaller percentage of payroll which is used to pay the administration and office maintenance in each of the state offices.

This system was enacted in the 30's during the FDR administration to provide a cushion for workers losing employment through no fault of their own. This has been a significant economic stabilizer for employees and the over-all economy alike in the ensuing decades. Increased benefits have been authorized in past times of economic necessity by Congress and the Administration.

We are again at such a time of increased difficulty for unemployed persons to find new employment. Mr. Bush's ploy against extending benefits beyond 26 weeks is that he does not want to "bust the budget." This is deception approaching lying.

The situation is this.....there is adequate money in the Unemployment Compensation Trust Fund.....on paper. As money has been collected from employers it has continually been used as general revenue in order to make the current deficit look smaller. Even though there are billions in the Trust Fund, the money is gone. (It is this way with other trust funds.....Social Security, Highway, Airport, etc.) Now, when money is to be disbursed from this (and these) funds, it must come from current revenue, impacting the current budget balance agreement.

This is our dilemma.....we are not only spending $5 for every $4 we take in at federal level, we have spent all of our money "in the bank." Congress is accused of "pork barrel" politics, but legislators must bring "goodies" to their districts to continue to be elected. Ask any legislator about the trail of people coming to see them ... they all want something. How many are there to discuss long-term public interest?

Until we Americans stop the self-deception, the deception of each other and stop expecting a dollars worth of government for 80 cents, our dilemma will go on and on. Government isn't too big.....it's what we're doing with it!

Gil Degenhardt

Cape Girardeau