Amid a massive federal government buildup, waste and fraud inside the U.S. Department of Labor leads to $7.1 billion in overpayments to Americans across the country.
However this is little comfort to those who are losing their government-funded paychecks and leaves Americans scratching their heads as to why the Department of Labor is not properly managing their money.
The latest vote from Capitol Hill has left Democrats frustrated that the GOP as well as fellow party members blocked additional money to be borrowed from the federal-reserve bank (printing money) therefore adding to the deficit and will let thousands of Americans who are unemployed feel the pain of the dithering economy.
The $7.1 billion in waste can be attributed to applicants who received benefits they are not entitled to, according to the U.S. Department of Labor.
Congress said they will not extend the current jobless benefits for the long-term unemployed; these jobless workers will have to make do with their 99 weeks of government paychecks.
The U.S. Department of Labor said in fiscal year 2009, states shelled out $7.1 billion in overpayments through unemployment insurance, nearly doubling the fraud from $4.2 billion the previous year.
American’s received approximately $76.8 billion in unemployment insurance in 2009 and $41.6 in 2008.
The U.S. Department of Labor’s final report is set to be released next month.
On a Friday afternoon before the President heads out to Martha’s Vineyard for a week-long vacation, White House officials at the Office of Management released new 10-year budget projection of $9 trillion up from the previous $7 trillion mark.
A longer than usual recession and a decline in federal revenue sparked the dramatic increase in deficit numbers. The Obama Administration has misjudged the dollars and cents once again.
In a report from the Congressional Budget Office expected out next week, the one-year budget deficit will fall somewhere in the $1.825 trillion. Again, this doesn’t include the health care projected $1.6 trillion price tag.
The U.S. debt now stands $11.7 trillion, leading financial analysts to believe the recession will have a lingering effect on the already lagging economy. Financial gurus also note that this type of deficit is not sustainable and the only way to pay it back is through inflation.
Coming on the heals of a failed $787 billion stimulus package that 72 percent of Americans want the President to return to the taxpayers, September is shaping up for a tough fight even though Democrats hold large majorities in the House and Senate.
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