Peter Schiff, president of Euro Pacific Capital, spoke on his radio talk show late last week to discuss the recent debate in Washington over extending unemployment benefits. Schiff noted that he opposes the measure for one simple reason: extending unemployment benefits actually extends unemployment.
Senate leaders are still in negotiations and have yet to vote on a deal that would extend jobless benefits for more than 1.3 million Americans. There is still no agreement as to how long the extension would be, but it could cost anywhere between $6 billion and $25 billion – three-month and 11-month proposals have been submitted thus far.
President Obama and his legion of Democrats argue that not extending the benefits would hurt those who are unemployed for long periods of time as well as stifle the overall economy. Republicans, though not fully in opposition to expanding jobless benefits, say any extension must come from broader spending cuts.