By David E. Bonior
U.S. Representative D-Michigan

It's been more than three months since the attacks of Sept. 11.

Since that time we've seen over 747,000 lay-offs across the country as our economy has slowed to a pace not seen since the early 1980's.

Here in Michigan, unemployment insurance claims have risen 130% over this time last year. Yet as these numbers soar - and as we pass bill after bill to bail out industries hurt by the attacks - there has been no action at the state or federal level to help laid-off workers get back on their feet.

Through no fault of their own, these workers have found themselves unemployed in a job market with little to offer. And while their jobs have ended, their families' needs continue. They need health insurance, a roof over their heads, and food on the table. Right now, these workers are turning to the state for unemployment insurance and health care - and they're finding that this assistance is largely inadequate.

In the third quarter of 2001, 32,168 Michigan workers unable to find work exhausted their unemployment benefits - an 88% increase over this time last year. Many of these families will now have to go on welfare to make ends meet. Others will have no place to turn.

Furthermore, unemployment compensation in Michigan is hardly enough to support a family. Gov. Engler pushed through Public Act 25 in 1995 which capped the weekly unemployment compensation benefit at $300. Before 1995, unemployment benefits were increased every year to keep up with the cost of living. If Engler had not capped the benefit, the maximum unemployment compensation benefit would be $414 today.

But now, our state's laid-off workers have to support their families on much less than they did six years ago, and they're living hundreds of dollars below the poverty level. Meanwhile, Michigan's unemployment trust fund is currently valued at $3.1 billion. The Governor should remove the unemployment cap and offer laid-off workers a meaningful benefit that will be enough for workers to support their families while they get back on track.

We also need to take action at the federal level to help those who have found themselves unemployed after Sept. 11. I have fought hard for an economic stimulus package which provides for a one-year expansion of unemployment benefits and health care for laid-off workers. Under this plan, the unemployed would receive an additional 26 weeks of benefits, weekly checks would increase by 25% or $65 (whichever is greater), and part-time workers would be eligible for assistance. The federal government would also cover 75% of health care costs under the COBRA program, enabling far more workers to receive health insurance.

Unfortunately, the Republican leadership in Congress has fought hard against meaningful assistance to laid-off workers. Instead, they rammed legislation through the House of Representatives which was heavily skewed toward wealthy and corporate interests - which need our help the least.

If we are really serious about stimulating the economy, we need to put money into the hands of those most in need. People who are unemployed aren't going to save money: they're going to spend it right away. For each dollar spent in unemployment benefits, the national GDP is boosted by $2.15.

Yet, 89% of the $160 billion House-passed Republican bill would go to large corporations and wealthy individuals in the form of tax cuts. Only 11% would aid laid-off workers. These are the wrong priorities for our state and nation to have during a time of national and economic crisis. Now is the time to reach out to those among us who were hardest hit by the Sept. 11 attacks and help them in their hour of need. It is my hope that the Senate passes an economic stimulus bill that provides meaningful assistance to our nation's unemployed and that the President continues to show compassionate leadership by signing that bill into law.

Before we act to help any more industries, we need to help those workers who make these businesses profitable. We have to remember the human face of our economy. We cannot leave our working families behind.