Report: UI, aid to states, improved credit access will help recovery

Extending unemployment
benefits “would have ripple effects across the economy, helping to boost
growth,” according to the report. 

The Senate is poised to pass
a long-delayed six-month extension that will restore benefits for 2.5 million
of the long-term unemployed on Tuesday. 

Benefits beyond 26 weeks
expired June 2, leaving a growing number of unemployed without their weekly
checks amid a protracted uncertainty on whether Congress would act.

Senate Majority Leader Harry
Reid (D-Nev.) put the measure on hold for an additional week as the chamber
waits for the replacement for Sen. Robert Byrd (D-W.Va.), who died late last
month, to arrive in Washington. 

The $34 billion measure,
which isn’t paid for, is expected to pass with the help of Carte Goodwin, the
former chief counsel for West Virginia Gov. Joe Manchin (D), who will be sworn
in Tuesday afternoon.

Friday’s report suggested
helping state and local governments to avoid layoffs and service cuts while
increasing credit for small businesses that could spur much-needed
private-sector hiring. 

The report recommends that lawmakers avoid cutting any targeted
government spending, especially that focused on job creation. Pulling back
funding could slow the recovery.