Amid a massive federal government buildup, waste and fraud inside the U.S. Department of Labor leads to $7.1 billion in overpayments to Americans across the country.
However this is little comfort to those who are losing their government-funded paychecks and leaves Americans scratching their heads as to why the Department of Labor is not properly managing their money.
The latest vote from Capitol Hill has left Democrats frustrated that the GOP as well as fellow party members blocked additional money to be borrowed from the federal-reserve bank (printing money) therefore adding to the deficit and will let thousands of Americans who are unemployed feel the pain of the dithering economy.
The $7.1 billion in waste can be attributed to applicants who received benefits they are not entitled to, according to the U.S. Department of Labor.
Congress said they will not extend the current jobless benefits for the long-term unemployed; these jobless workers will have to make do with their 99 weeks of government paychecks.
The U.S. Department of Labor said in fiscal year 2009, states shelled out $7.1 billion in overpayments through unemployment insurance, nearly doubling the fraud from $4.2 billion the previous year.
American’s received approximately $76.8 billion in unemployment insurance in 2009 and $41.6 in 2008.
The U.S. Department of Labor’s final report is set to be released next month.
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