As you know, before our government left for its summer vacation, it declined to extend funding for certain unemployment benefits.
Most people think our government will extend this funding when it finally gets back from vacation (October?), but in the meantime, by the end of July alone, some 3.5 million Americans will have been cut off.
When you don’t have money, you can’t spend it, so economists like Asha Bangalore at Northern Trust expect to see a hit to personal income and spending in June and July (and thereafter, if our government stands by its new austerity plan).
This isn’t a vote for or against extending funding for additional benefits. It’s just a reminder that you can’t have your austerity cake and eat it, too.
Photo: Northern Trust