07.10.2013 Policy Points

“The Decline Of North Carolina”

An editorial in today’s issue of The New York Times assesses some of the policy changes underway in North Carolina.

The cruelest decision by lawmakers went into effect last week: ending federal unemployment benefits for 70,000 residents. Another 100,000 will lose their checks in a few months. Those still receiving benefits will find that they have been cut by a third, to a maximum of $350 weekly from $535, and the length of time they can receive benefits has been slashed from 26 weeks to as few as 12 weeks.

The state has the fifth-highest unemployment rate in the country, and many Republicans insulted workers by blaming their joblessness on generous benefits. In fact, though, North Carolina is the only state that has lost long-term federal benefits, because it did not want to pay back $2.5 billion it owed to Washington for the program. The State Chamber of Commerce argued that cutting weekly benefits would be better than forcing businesses to pay more in taxes to pay off the debt, and lawmakers blindly went along, dropping out of the federal program.

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