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Q . Why are you pushing for an extension of jobless benefits to hard-hit states like Michigan?
A . Because we have a historically high number of people who are out of work, and have been out of work so long that they're running out of the unemployment comp. The prediction is that if we don't act, about 100,000 Michiganders are going to exhaust their benefits by the end of the year. And that figure nationally is 1.5 million people. The key point is that we have a historically high number of people who are exhausting their benefits.
Q . If it's really needed, why not have an extension for all states, not just for those with high unemployment?
A . Historically, there has been a differentiation among states based on the level of unemployment. The higher the unemployment, the harder it is in general to find work. It's a lot of states. Right now, the present program has a differentiation.
For those states with unemployment under 6 percent, it's 46 weeks, for those over, it is 59 weeks. Plus the extended benefit program. So we in essence have a differentiation. And what this law does is continue that policy and provide some additional benefits for states that have a percentage of the total work force that is unemployed, over 9 percent.
Q . When you look at support in the Congress, how much support is there? What's ahead?
A . I think we'll mark up the bill in September. I think there is broad-based support.
We had some discussion about this in the Michigan caucus with Republicans and Democrats. I think there is support that cuts across party lines. ... Not only is the unemployment rate very, very high, but the number who are exhausting their benefits is historically high. There are more people who have been unemployed for longer than six months in this recession than at any time since when they first calculated that in 1948. These are unemployed people looking for work, to be eligible.
Q . Governor Granholm and you estimate that 100,000 Michiganians will lose their unemployment benefits at the end of the year. What would be the result?
A . It would terrible for in the lives of these families and also very harmful for the state.
Economists who are known for being rather cautious, they believe the unemployment comp is a stimulative program, that for every dollar of extended benefits it generates about $1.60 to $1.65 in increased activity. It is a vital form of stimulus for the state and a vital necessity for the individual families, many of them in terms of the food for the table and for a good number to keep their homes. Unemployment comp has been a major help to try to prevent (home) foreclosures.
Q . Critics of extending jobless benefits say it discouraging people from job seeking, considering other lines of work or moving to states needing workers. What's your response?
A . My response is, (at a job fair) thousands came out for a few jobs. The estimate is that there are about 5.5 people unemployed for every available job. That's a national figure. It would be higher (for Michigan).
In terms of discouraging them from looking for work, when there are five people for every job, that's the main discouragement. These people are looking for work. That economic theory is not real life for the unemployed looking for work in this state.
In terms of doing some training and retraining, (Michigan) has perhaps the leading worker retaining program in this country. And it is actively helping people retrain. ... This state has maybe the strongest worker retraining program in the country. The third point, go elsewhere?
I was just talking to people in the construction industry last Tuesday, and the building trade unions have a high number of people working out of state, on what are called travelers. They take their union card and go elsewhere. They are doing it. It is very difficult for the families. Kids are in school here, spouses are working here.
Let's remember that three-quarters of the people, where there are spouses, are working. So saying just pick up and go elsewhere means that the job of the spouse in a two-spouse family. And it means pulling the kids out of school and going elsewhere. There is any lack of incentive or aspiration. You've got a job crisis here and we need an unemployment comp system that helps people return to work.
Q . But critics say you have to turn off the money at some point or people simply won't get jobs.
A . You'll find a job if there is a job to find. ... The reason the unemployed are so invisible is that today people don't go to unemployment comp offices to pick up their checks. ...The vast majority (of jobless people) are crying out for work.
Q . The Senate is weighing an almost identical bill to your House bill. What are the chances these bills will pass?
A . It's going to happen. I would be surprised if it did not occur in September.
Q . Are you concerned that the overall economy may show signs of improvement and make it harder for you to persuade your colleagues that lagging states like Michigan still need help?
A . I think (the economy is) beginning to turn up, but there is a long way to go. ...
Q . Critics say a lot of the jobs in Michigan aren't coming back, and people need to move on, or they will never be able to pick themselves up. Your response?
A . We have the strongest retraining program in the country. ... People are flocking for upgraded training in record numbers. ... The community colleges, I think, have record enrollments. But remember there have to be jobs for people. But Michigan is beginning to diversify. All this work we've been doing on batteries, on renewables, defense contracting, it's beginning here. It's beginning. And so diversification is beginning to really happen.
Q . So pulling the plug would cause needless pain and financial disruption?
A . It won't work if families are hungry and losing their homes. Those who just kind of use an automatic answer to an historically different situation are simply just not reacting to the realities of today.
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