indexWashington is embroiled in a fight over the restoration of cancelled federal unemployment benefits for about 1.3 million Americans, which expired at the end of last month.

Both Republicans and Democrats want to restore unemployment benefits to those who lost benefits but each side has different approaches to achieving this goal.

Democrats want the benefits restored immediately without any preconditions, and Republicans are set on the policy of restoring unemployment benefits, but with a caveat of finding offsetting reductions.

The bill, sponsored by Sens. Jack Reed (D-R.I.) and Dean Heller (R-Nev.), would grant $6.5 billion of additional benefits of three months for the long-term unemployed.

The Emergency Compensation (EUC) program was first authorized by Congress and signed into law by then President Bush in June 2008.  At the time unemployment was then 5.6% and the average duration of unemployment was 17.1 weeks.  Today, as of November 2013, the unemployment rate is 7% and the duration of unemployment is around 36.1 weeks.

As of right now the federal government has spent close to $300 billion dollars on this program covering unemployment benefits for those who have been unemployed; many of them long term.

The question that needs to be asked is after this gets extended for an additional three months, then what?  Will be going through this debate again?

What is Washington’s solution to the chronic long term unemployed, many unable to find work or at the salary they had while employed?

Both sides are using this as a set up for the eventual fight that comes in November with the mid-term elections.  Democrats are hoping this issue will resonate with voters; especially deflecting attention away from the disastrous implementation of the president’s signature issue; health care.

Republican are still smarting from the government shutdown in October and being incentive to the plight of the less fortunate.

The president will almost for a certainty bring this up during the “State of the Union” address at the end of the month.  Income inequality has been his moniker since becoming president and looks like it will be the theme going into the mid-term elections.

Again, the question needs to be asked what is Washington doing to create jobs?  We currently have over a $17 trillion dollar deficit; more Americans are in poverty then were in 2008, more Americans are on some kind of federally funded entitlement program, less people are working now then any time since the mid-1970’s.  The question what is Washington doing about these problems.

Each sided is hoping the other one blinks in this standoff.  Democrats would like to get the approval to restore these benefits for three months, then in the interim can begin to find offsetting savings.

Republicans don’t buy the argument s and want the cuts now before they approve the restoration of the benefits.

Eventually the restoration of benefits will happen it just depends how they are restored.