Center on Budget and Policy Priorities

Recession and Recovery

Additional Federal Fiscal Relief Needed to Help States Address Recession’s Impact

“[Without additional federal relief,] states will have to take steps to eliminate deficits for state fiscal year 2011 that will likely take nearly a full percentage point off the Gross Domestic Product…[and] in turn, could cost the economy 900,000 jobs next year.

“[This] problem is coming to a head now… because states… are taking steps now to plan their [2011] budgets.” Read more

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Basics

A recession is a significant decline in the size of the U.S. economy lasting more than a few months, normally visible in a variety of economic indicators. Economic stimulus policies aim to avert a recession or lessen its severity by boosting the economy in the short term. The unemployment insurance system helps people who have lost their jobs by temporarily replacing part of their wages, typically for up to 26 weeks.

Policy Basics:
- Introduction to Unemployment Insurance

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Robert Greenstein

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Chad Stone

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Paul Van de Water

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The Center examines the impact of changes in the economy on federal and state budgets, as well as the likely effectiveness of economic stimulus proposals. We also examine trends in employment and promote reforms to strengthen the unemployment insurance system.