Unless lawmakers somehow maintain the funding of welfare programs at current levels, the nation’s poor could suffer a devastating loss of income by the end of the year. According to an estimate by Moody’s Analytics, $37 billion in extended benefits are set to expire.
The New York Times reports public aid, including Social Security, jobless benefits and food stamps, made up 20 percent of personal income last year. Jobless benefits, which Congress extended to a maximum of 99 weeks, are scheduled to stop at the end of the year. The benefits cut could cause a ripple effect in the economy, with consumer spending taking a hit.
Which types of government aid do you think are most effective at helping people get back on their feet?
Economy Faces a Jolt as Benefit Checks Run Out [The New York Times]