With unemployment rising and no new information on unemployment benefits extensions, unemployment numbers could be extended throughout the year which, even with an unemployment benefits extension, may cause defaults on mortgages from homeowners who have escaped the financial strains of the economy and redefaults from those involved in the home loan modification program.
Unemployment benefits are helping many Americans afford the very basics in most cases, which is greatly appreciated, but there is a bigger argument from those who are unemployed and that comes from the lack of unemployment benefits available. Anyone who has paid unemployment benefits for years and now has only, in the very best case, 99 weeks worth of compensation feels frustrated.
However, despite the need for unemployment benefits to allow unemployed Americans some sustainability, the bigger problem is unemployment itself. Homeowners who previously had no problem paying their mortgage are defaulting and those who fought for a home loan modification are now in danger of defaulting if they haven’t already.
Programs set in place to rebuild the economy and aid Americans will never reach their full potential unless unemployment is combated and solutions are given. The problem with this is a complex one, though, as small business owners are denied the loans, credit, and capital which will allow them to grow and hire more workers.
Those who have profited during the recession, businesses and banks, have an obligation to help those who have allowed them to reach the successful status they now enjoy, not by making sure everyone has the same amount of everything, but by providing the opportunities, which can come in various forms, for those willing to work for their well-being the chance to do so.
Sitting on the sidelines and waiting to see what happens or delaying action until things get better will, again, cause no real economic growth, defaults and redefaults on homes, businesses to suffer, and eventually those big companies are going to be affected. All of these troubles are stemming from one source that has to be dealt with above all others: unemployment.
