Unemployment Benefits: Solid, Though Cyclical, Funding
But Underfunded by $150B Over 49 Years Owing to -$115B* Deficits in 2010
USA Inc. Real Annual Unemployment Insurance Revenue & Expenses, F1962 — F2010
BZ) ce — rs ne ne ars res ces care et canes cs ee 9 aS Soe ip — fos eS Soe et — pats Ses Ss fk — Fame SD SS FE 2 SS So SSO eS cos et — a
o sci ” a =< $20 silttucscel - oT) < AT jf i\ | nonn a wi T T T T T T T i} T T T Ta I W T J T T T T T T iy T T T T T T T T T a = S -$30 ------------------§----NFU-E-- Ug a --------ADFE--------- > a a“ vo [S) F GSO — eae ee = re ee ee i a ore 9 sae mae st — um an ake — GU as Nh — GR a IS mao 9 SE Sat — ” = = a = mass Unemployment Insurance Expenses > © $130 --- ees i ete me eS YM 2 «ass Unemployment Insurance Revenue a = — Unemployment Insurance Net Income
-$180 ~~ - ~~ - a a
1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010
Note: USA federal fiscal year ends in September; *all data inflation-adjusted, based on 2005 dollars. KP Source: White House Office of Management and Budget. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 123
Unemployment Benefits: In the Past, Benefits Paid
Have High (70%) Correlation to Unemployment Rate
Real Unemployment Benefits & Unemployment Rates, 1962 — 2010
MD ce 2 = mam ce cw ae i oN ~ T D TB B - 12% mas Real Unemployment Benefits 160 —UnemploymentRate = = — 10% ER BID mmm me me we me me se oe me im = Hm St ie t= te tee — on & BI mmm em — ne me no em me soe me fle er st ee t= ee 8% o 2 co © $B AID mee me me a ae ee ee ll — a re ae es ln — ee a Ss a St 3 = o < = 6% @ > E B 80 Nf Nf EQ fe Nef = fom — £ a © E S 60 ----- Qf ge NB 4% @ > 2 g m 40 --------------------- P-gp 2% 20 Th - seo 0 0% 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 KP Note: Fiscal year ends in September. Source: White House Office of Management & Budget, Bureau of Labor Statistics. a USA Inc. | Income Statement Drilldown 124
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