This article gives a good explanation of the system of unemployment benefits in the USA. The benefit is given for a short period, to help the unemployed people to tide over a short period so that they can find the next job. This usually works well, except in a prolonged recession (which is happening now). Apart from helping to relieve hardship, the unemployment benefits help to spur economic growth. The question that the USA has to face is how to cope with the prolonged recession. President Obama wants to extend the unemployment benefit, but needs Congress to approve the additional funding (as the US debt is already too high!).
http://www.cnbc.com//id/45174237
http://www.cnbc.com//id/45174237
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