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Sen. John F. Kennedy and Rep. Eugene J. McCarthy advocate for increasing federal unemployment compensation to 50% of wages for up to 39 weeks, citing low current benefits and economic stimulus needs, discussed on AFL-CIO radio program.
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With 4.5 million persons jobless, the federal unemployment compensation insurance law needs improvement to aid the jobless and to provide the economy with a needed stimulus.
Sen. John F. Kennedy (D-Mass.) and Rep. Eugene J. McCarthy (D. Minn.), made this statement in a discussion of bills they have introduced to increase federal standards for unemployment compensation payments to 50 per cent of a worker's wage and extend payments for as long as 39 weeks.
They were interviewed on the AFL-CIO public service radio program, "Washington Reports to the People."
"Can't Live On That"
"Some states are now paying as low as $28 and $30 a week to unemployed workers," Kennedy asserted.
"You can't live on that. Recent statistics show that it costs a single woman $51 a week as a minimum in some of our major cities. And most of the people drawing unemployment compensation have families to support."
"An increase in compensation payments, as provided in our bills," said McCarthy, "would certainly have a significant effect in stabilizing the economy." He declared that an increase in benefits and extension of time in which they would be paid would add materially to purchasing power.
Not only would the worker benefit, according to Kennedy, but the grocer, the businessman, the consumers and taxpayers.
Is Federal Responsibility
"As it (this law) was originally proposed, it was hoped that unemployment compensation would give the worker at least enough to maintain his minimum needs for clothing, food to take care of his family." Kennedy said. "The law came closer to doing this when it was first written in 1939. Now it's meeting only 30 percent of his needs, at best."
McCarthy declared that unemployment insurance improvement is a federal responsibility. This has been demonstrated, he said, by Administration failure to obtain needed improvement of the law through state action even though efforts have continued for four years.
"States which are honestly trying to do a job are penalized," Kennedy said. "Others are competing in human misery."
Establishment of more just standards, McCarthy declared, "would discourage the growing practice of shifting industry from one state to another because of the special privilege legislation."
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Kennedy and McCarthy introduce bills to raise unemployment benefits to 50% of wages for 39 weeks, arguing current low payments fail to meet needs and that federal standards are required to stabilize economy and prevent state competition in misery.