EXCERPTS:
"WASHINGTON—Spooked by concern about deficits, the Senate shelved a spending bill that included an extension of unemployment benefits, suddenly cutting off a federal cash spigot opened by President Barack Obama when he took office 18 months ago.The collapse of the wide-ranging legislation means that a total of 1.3 million unemployed Americans will have lost their assistance by the end of this week. It will also leave a number of states with large budget holes they had expected to fill with federal cash to help with Medicaid costs.
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"One element that will survive in a different form: a proposal to suspend a 21% cut in Medicare payments to doctors that's set to take effect this month. That was stripped from the bill last week in a cost-cutting step and sent to the House as a stand-alone measure. The House, voting 417 to 1, approved the six-month suspension of the cuts late Thursday.
COMMENT:
This means the government is cutting benefits to long-term unemployed workers but not cutting Medicare payments to doctors.
QUESTIONS:
1. How are long-term unemployed workers likely to feel about their benefits being cut but payments to doctors not being cut?
2. What would be the consequences of continuing to provide benefits to unemployed workers, not matter how long they remain unemployed?
3. What consequences would result if the government cut Medicare payments to doctors based on the idea that "if long-term unemployed workers are going to have to suffer it's only fair that doctors suffer a little too?"
