Unemployment Funds Drained Across the Country

It's become quite evident to all Americans that our economy is tanking very quickly with no apparent end in sight. The recent collapse of the job market is by far the most troubling of all the economic news. First, it was the housing market, then the credit markets and the financial system, now it is the employment market. Quite frankly, without the employment market holding up the American economy is destined for a very rough period. In recent months we have seen over 500,000 jobs lost in a single month, and this week huge companies such as Caterpillar and Home Depot announced they are laying off thousands of employees. Could the news possibly get any worse? Yes it could, and it is at this very second.

The worst news yet may well be that almost every state in the country is having their unemployment funds depleted to almost nothing. In fact several states, such as Ohio, New York, South Carolina, and Michigan have already completely run out of unemployment funding and have received huge federal loans from the government just to keep those who are unemployed still getting their proper benefits. A good example of how fast things are going south is my home state of Ohio. Ohio ran out of funding two weeks ago and received a $500 million loan from the federal government to pay unemployment benefits. The worst news is that Ohio is currently burning at least $50 million a week in those benefits, and that number is growing by the week.

Consider the fact that our federal government is already running a record deficit and is in no shape to be consistently loaning money to each and every state and you realize just how bad the picture truly is. The federal government clearly has to help the states and fulfill the needs of those who are being fired, but they aren't in a good position to be doing so.

This leaves us with the realization that the vicious cycle is just continuing on and on. First the economy turns south and businesses begin to lose money, then the layoffs come, then the unemployment funds are depleted, and finally the federal government tries to come to the rescue even though it's capacity to do so is weakened right now.

The state and federal governments are having serious financial issues and so are middle class Americans as they worry about their jobs and their ability to support their family. Things are ugly, and they are just getting worse as the days go, at least for the time being.