What is the impact of unemployment insurance on the recession and how does Obama's proposal hold up?

As of this summer, unemployment insurance trust funds in 30 states were insolvent and with poor long-term prospects in the labor market, these funds will remain a significant fiscal challenge in the future.

There is cause for concern regarding the viability and health of many state unemployment insurance trust funds, and federal policies to promote job creation are the single most important determinant of solvency.

The recent improvement in payrolls and the unemployment rate are welcome news, but the plight of the long-term unemployed in the United States is considerable. The policies that have been executed since mid-2008 to foster an economic recovery have failed to deliver measurable results, and those most hurt by the current downturn are often the long-term unemployed.

While the U.S. labor market has deteriorated in the last few months, aggregate conditions are not worse than they were when extended unemployment insurance benefits were enacted in 2002.

Our plan addresses the long-term fiscal imbalance while promoting limited government and economic growth. The plan fundamentally reforms the tax code while aggressively cutting federal spending to hold down the debt.