European Stars and Stripes (Newspaper) - September 08, 1985, Darmstadt, Hesse                                Page 16 the stars and stripes sunday september 8, 1985 critics say Reagan Aid cuts leave jobless vulnerable 11% 10% by Pete Yost associated press f rom unemployment compensation Tojo training and food Stamps the Reagan administration has instituted drastic cuts inlaid to the unemployed shrinking the size of some programs by As much As 45 percent. The administration contends that the scaled Down programs Are More effective than the old ones and fully meet the Federal obligation to the nation s jobless. Even administration critics concede that positive Steps have been taken such As the development with a Strong push from Congress of a of training program for displaced workers poor youths and welfare recipients. But Overall the reductions in help for the jobless ate so widespread that the Heagan White House has left itself vulnerable to a chorus of criticism of frequent opponents democrats on Capitol Hill labor unions and groups representing the poor and unemployed. Because of the cuts. We re ill prepared to face another recession said John Bickerman. Research director Lor the Center on budget and policy priorities a non profit research group financed by several foundations. We be Cut beyond the flesh and into the Bone in some of these programs he said. Unemployed people ate going to Sutler much More in the future because these programs will fail to protect them As they once  the nation jobless rate remains above 7 percent with nearly 6.5 million unemployed an historically High level after More than 21/2 years of economic recovery. In addition millions of people Are losing their jobs in the transition of the nation s Economy from manufacturing to service industries. Many dislocated Blue Collar workers find it impossible to get new jobs that pay As Well As their old ones even if they Are willing to move away from he Industrial decay of the rust Belt. The number of High seniority employees thrown out of work by factory closings or Plant moves averages half a million a year for a five year Span through 1983. The labor deportment reports. Of 5.1 million displaced workers Overall in that time 1.3 million were still looking Tor jobs in january 1984, and about half of More than 3 million who found employment were paid less than in their previous jobs. So far this year More than 200,000 jobs have been lost in the manufacturing sector. On the other hand 265,000 jobs a month had been created from the end of the last recession through May. A healthy Pace that has reduced the jobless rate substantially from its Post depression Peak of 19.7 percent in december 1982. Throwing Money at the question of unemployment does not work said Michael Avakian the senior attorney at the Center on National labor policy a conservative Washington based Legal foundation. Making unemployment compensation too lucrative Means that people Are going to hold out As Long As possible until a Job that was exactly equivalent to their old one comes  said Avakian. Comments from Coal miners in West Virginia seemed to Back him up. I would t take a minimum wage Job said Charles Clark of Logan who was Laid off in 1982 after 12 years in the mines. It would pay me about As much As i m getting on unemployment right now but with additional expenses and taxes. I d be losing  Earl Barker of Williamson Laid off last year complained he had no incentive to work part time. If i take a painting Job to help better myself he said i have to report it and they take the whole amount off my unemployment Check. They re forcing me to starve or be a  about 25 percent of the nation s unemployed now receive jobless benefits a modern Day Low and the rate is heading Down the Center said. More than one third of the Long term jobless were living below the federally set poverty line in 1983, according to the latest figures available from the labor department. And the latest unemployment figures unemployment rate 1081 show that Well Over a million of the nation s jobless have been out of work for More than six months. Reagan s frequently stated goal is that every american who wants a Job should have one and the administration s View is that the Best Way to Atkaln the goal is through economic growth. In the meantime says Reagan the safety net for the truly needy will be maintained and those who want Job training will get it. However the administration also is intent on scaling Back programs like unemployment insurance that it feels have gotten too costly and inefficient and have exceeded their original intent. All three Here of unemployment Benefit programs have been Cut since Reagan took office. The latest reduction was the phase out of federa supplemental Aid that in recent recessions had provided up to 14 weeks of additional payments for 340,000 Long term unemployment. Reagan defends his decision to Cut the program by saying dislocated manufacturing workers and others who Are unemployed should head Tor Job training programs. Reductions in the unemployment insurance system mean that a larger number of unemployed Are Likely to go on other forms of Public assistance faster than they would have in the past said Demetra Nightingale a research associate at the Urban Institute a private non profit research group. In addition the Federal government began levying heavy financial penalties on delinquent jobless Loans to the states. As a result 10 states have made it More difficult to qualify for Basic 26-week state unemployment programs which pay a family of four anywhere from $320 to More than $900 a month. She was referring to programs such As food Stamps and Aid to families with dependent children which have also been curbed to slow their rates of growth. It is in federally supported Job training that the administration s biggest cuts in Aid to the unemployed have occurred. In the 1981 fiscal year spending Tor employment and training programs Otalee More than $9 billion including billions for Public service jobs. But spending this year is just $5 billion and Public employment was scrapped entirely from the Job training partnership act programs which the administration created two years ago. Reagan has criticized the now defunct comprehensive employment and training act programs As spending $3.5 billion a year to place 300.000 people in make work Public jobs. He touts this new program Jupa As spending far less to train 1-5 million people for the private sector. Hard hit states like West Virginia Are being targeted by the labor department for Job retraining Money. The Job placement rate for Ceta frequently ran As Low As 15 percent the administration has said while the rate under the new program is about 70 percent. Ceta is a ailed Experiment in trickle Down economics giving Money to Job trainers in Hopes that trainees would have a better  said Michael Horowitz Legal counsel to the director of the office of management and budget. However several foundations concluded in a study that the new Job training program alls to meet the Long term unemployed and out of school youths. The program run at the local level with the involvement of area businessmen Best serves people who need a Small amount of training to prepare them for entry level jobs said the study. They Are creaming taking the Best of those who Are eligible said Sar Levitan director of the Center for social policy studies at George Washington University. Labor department officials respond that 95 percent of the people being served by the program Are economically disadvantaged. Jupa. Unlike Ceta does not pay wages to its unemployed participants and the Reagan administration s attitude is let them eat training Levitan said. The administration is proposing to kill the Job corps which spends $600 million a year for remedial and skills training Lor 78,000 disadvantaged youths. A number of influential republicans on Capitol Hill support the program however and it survives. The administration also wants to end the $267 million a year work incentive program encouraging welfare recipients to seek work by offering remedial education Job training and child care services. The program has been Cut by $100 million since 1981, and the office of management and budget maintains that its goals can be achieved by Jupa the existing Federal welfare program and proposed legislation. Congress saved that program too