–House Speaker: ‘Cruel,’ Economically Inefficient to Deny UI Benefits
–Unemployment Insurance Extension Important ‘Stimulus’ to Economy
–Economic Growth Critical to Deficit Cuts, Also Need Spending Controls

By John Shaw

WASHINGTON (MNI) – House Speaker Nancy Pelosi said Thursday she is
“optimistic” Congress will approve an extension of unemployment
insurance benefits when the House and Senate return from the July 4th
recess.

At a briefing, Pelosi said it is “cruel” and economically
inefficient to deny UI benefits to people out of work.

She said Congress should approve UI benefit extensions in July
because of the “double benefit” of having a strong safety net and
promoting economic growth.

A UI extension, she said, would be “one of the biggest stimuluses
to the economy.”

The Senate has adjourned until July 12, having failed Wednesday to
pass a package that would extend UI benefits and give homebuyers more
time to qualify for a tax credit by extending the deadline for closing
on a home purchase from June 30 to Sept 30.

Senate Majority Leader Harry Reid fell one vote short of the 60
votes he needed to limit debate on the package. The bill would have
retroactively restored UI benefits that lapsed June 2 and extended them
through Nov. 30.

Pelosi said the appointment of a new Democratic senator to succeed
the late Robert Byrd should improve the bill’s prospects in the Senate
later in July.

On other matters, Pelosi said she expects the House to pass a war
spending bill Thursday but declined to say how large it will be and what
policy provisions it might include.

The Senate several weeks ago approved a $59 billion supplemental
spending bill, with money for the Afghanistan and Iraq wars, the Gulf of
Mexico oil spill, relief assistance for Haiti and FEMA to replenish its
funds to deal with natural disasters.

Some House Democrats want to add about $23 billion so states will
be able to avoid large scale teacher layoffs. But deficit concerns among
some House Democrats may compel Pelosi to trim the emergency bill’s
costs.

Finally, Pelosi said the promotion of economic growth is the
critical factor for getting control of the nation’s long-term deficits.

When asked to comment on a suggestion by House Minority Leader John
Boehner to gradually increase the retirement age to 70 for Social
Security, Pelosi declined to endorse the idea.

“Let’s not start,” with Social Security reform, she said. “Let’s
talk about growth,” she said, but added that entitlement reform and
overall spending discipline are also important.

** Market News International Washington Bureau: (202) 371-2121 **

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