Unemployment benefits should be considered emergency spending and paying for them isn't a likely option, a White House official said Wednesday.
"I think this is a unique emergency that we believe should be addressed immediately," said White House spokesman Robert Gibbs.
Senate Democrats and Republicans are at a stalemate over extending unemployment benefits to millions of Americans who have been out of work for more than six months.
Lawmakers were unable to reach an agreement on an approximately $34 billion measure before leaving town for the week-long July 4 recess. Republicans are insisting on using stimulus to help pay for the benefits while Democrats have argued that, in the past, unemployment insurance has been extended without being offset by tax increases or the shifting of funds from other accounts.
An overwhelming majority (75 percent) of senior executives from U.S. companies with between $500 million and $3 billion in total revenues are optimistic about achieving their companies' growth expectations over the next two years, according to a new survey by the tax and consulting firm Ernst & Young LLP.
Low mortgage rates boosted
home refinancing applications to a 13-month high in early July, while the
purchase index decreased 2 percent after the expiration of a federal tax
incentive in April.
The refinance gauge increased
9.2 percent from the previous week, hitting its highest level since May 15,
2009, according to data released by the Mortgage Bankers Association (MBA) on
Wednesday.
The seasonally adjusted
purchase index decreased 2 percent from one week earlier, the eighth time in
the past nine weeks.
“For the month of June,
purchase applications declined almost 15 percent relative to the prior month,
and were down more than 30 percent compared to April, the last month in which
buyers were eligible for the tax credit,” said Michael Fratantoni, MBA’s vice
president of research and economics in a release today.
Consumer spending is running
slightly ahead of 2009 levels but is still far below levels seen two years ago,
according to a Gallup poll.
Americans reported spending
an average of $67 per day in June at outlets such as stores, restaurants, gas
stations and websites. That figure is a $5 decline from May but an increase of
$6 from the same month a year ago, according to Gallup.
Discretionary spending during
the first six months of the year has gradually improved while the economy has
continued its slow expansion. But without significant job creation, it will be
difficult to convince most Americans it’s time to start spending again.
A new study by the Federation for American Immigration Reform (FAIR) found illegal immigration costs governments $113 billion a year.
Cost estimates in the report, the Fiscal Burden of Illegal Immigration on U.S. Taxpayers, are based on an analysis of federal, state and local programs that are available to illegal aliens and their U.S.-born children.
The study found states incur a majority of the $113 billion cost, with the federal government picking up only $29 billion.
Taxes paid by illegal aliens amount to roughly $13 billion a year, but the study noted that this figure could be higher if more of them paid taxes.
The study comes as the Justice Department announced it will sue Arizona over its controversial immigration law, saying it conflicts with federal law.
The department seeks to delay implementation of the law, which is slated for July 29.
Arizona’s annual cost of illegal immigration is $2.5 billion a year, according to the study.
The Conference Board on Tuesday predicted moderate job growth with its Employment Trends Index showing just a slight uptick from previous months.
"The moderate increase in the Employment Trends Index in the last two months suggests that many employers are now concerned that the recovery is losing momentum," said Gad Levanon, associate director of macroeconomic research at the Conference Board.
The Senate Environment and Public Works Committee vote last week to remove the $75 million federal liability cap for oil spills has the industry worried U.S. companies will be forced out of the oil exploration business because insurance companies won't be able to cover a risk that has effectively become unlimited.
"The accident in the Gulf of Mexico has shown us that we need to focus on safety and environmental protection," said American Petroleum Institute President and CEO Jack Gerard in prepared remarks. "But legislative proposals that would make domestic resources unavailable or uneconomic, instead of focusing on improving safety, must be turned aside."
The House Democratic Caucus announced Friday a new task force to review policies designed to stabilize the housing market.
Reps. Shelley Berkley (D-Nev.) and Dennis Cardoza (D-Calif.), co-chairmen of the Housing Stabilization Task Force, "will undertake a comprehensive review of housing stabilization efforts, looking at programs that have been successful along with those that are in need of changes and improvements.," according to a release today.
"I look forward to using this forum as a means of critically evaluating those programs in place to deal with on-going foreclosure and housing issues," said Berkley, whose state is one of the hardest hit in the country by foreclosures.
The task force will focus on several issues including, foreclosure mitigation, home valuation, lending programs and market stabilization.
"This task force represents a significant opportunity to study what is and isn't working as we work towards improving the federal response to this crisis," Cardoza said.
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