Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. -Old Chinese Proverb.
And these days not only do people get fish, they demand that you catch it for them and/or “the rich” give them their fish because it’s only “fair”.
And if that fish isn’t good enough for them they will throw it back until they get a bigger, better fish that THEY like!
Unemployment insurance prior to the Age of Obama was for 26 weeks. 6 months and was only meant to help you out in between jobs. Not be de-facto welfare.
Or a stimulus, if you remember what Speaker Pelosi said in July 2010:
“Let me say that unemployment insurance… is one of the biggest stimuluses (sic) to our economy. Economists will tell you, this money is spent quickly. It injects demand into the economy, and it’s job creating. It creates jobs faster than almost any other initiative you can name.”
So unemployment is good for everyone! So nearly 10% unemployment is great!
Aren’t you happy? Don’t you have lots of Hope!? 🙂
Now it stretch to 2 YEARS or more. Because Democrats have made finding a job so hard they have to cover their own buts by bribing people.
They call it “compassion”. I call it a bribe. Democrats are very good at paternalistic bribes.
The government pays you not to work. You in turn don’t bother looking. And if you aren’t looking you aren’t one of the statistics on Unemployment numbers because you aren’t looking.
Thus, the government can keep it artificially lower than it already is. Which is very high indeed.
So the Unemployment rate is just another political game to be manipulated.
Meanwhile, you have people just sitting around eating Doritos and hanging out doing nothing and getting paid for it!
And the government doesn’t make it easy to get off the dole either. Whether on purpose or not.
In the first year of unemployment, the size of the benefit check is based on your old salary. You can go right back on unemployment after a temp job, and nothing changes. But federal law requires states to recalculate benefits for the second year. If you worked a few days or a few months, the second year’s checks will be based on that lower earnings total. (Hartford Courant)
So you’re on unemployment, you get a temp job, your benefits get cut. So the obvious answer is to not take the temp job, right?
The government makes you want to stay.
But now Ms. Hanson rues the day she took that work. Why? The Connecticut Department of Labor used her negligible earnings in her part-time job as the new baseline for Hanson’s unemployment benefits. She went from receiving $483 a week to getting nothing.
“Afterwards, unofficially, they said I shouldn’t have taken the job,” Hanson says. (CSM)
Incentives to stay unemployed. Incestuous you might ask? At least I would.
Employers and economists point to several explanations. Extending jobless benefits to 99 weeks gives the unemployed less incentive to search out new work. Millions of homeowners are unable to move for a job because the real-estate collapse leaves them owing more on their homes than they are worth.
The job market itself also has changed. During the crisis, companies slashed millions of middle-skill, middle-wage jobs. That has created a glut of people who can’t qualify for highly skilled jobs but have a hard time adjusting to low-pay, unskilled work…
Many of the applicants he (Mark Sperry of Catepillar) saw at job fairs, he says, were just going through the motions so they could collect their unemployment checks. Some workers agree that unemployment benefits make them less likely to take whatever job comes along, particularly when those jobs don’t pay much. Michael Hatchell, a 52-year-old mechanic in Lumberton, N.C., says he turned down more than a dozen offers during the 59 weeks he was unemployed, because they didn’t pay more than the $450 a week he was collecting in benefits.
It is particularly troubling at a time when 4.3% of the labor force has been out of work for more than six months—a level much higher than after any other recession since 1948. (WSJ)
So what are you to do if Unemployment pays better than the job?
Just game the system.
And the system shall provide.
The disconnect between workers and jobs could constrain the economy for some time. It makes it hard for even small firms, which as a group typically account for an outsize share of job growth in a rebound. (WSJ)
So if you have 99 weeks of unemployment, you go out “looking” for a job but not really, then when it gets to about 95 weeks you get serious about it. But that’s nearly 2 years later!
There was a Swedish study that when they cut the benefit time, the amount of time people kept “looking” decreased in proportion.
Alan Krueger, the current Assistant Secretary of the Treasury for Economic Policy and a highly respected labor economist has said in his academic writing exactly that: unemployment insurance causes the unemployed to stay unemployed longer.
In his academic studies Dr. Krueger wrote that “more generous unemployment insurance (UI) benefits have been found to be associated with longer spells of unemployment,” and further finds that “the job finding rate jumps up around the time benefits are exhausted. Most importantly, we find that job search intensity is inversely related to UI benefit generosity for those who are eligible for UI.” In other words, a senior Obama administration official finds that less generous UI benefits cause the unemployed to search harder for new work.
Lawrence Summers, Director of the White House’s National Economic Council has said the same:
“government assistance programs contribute to long-term unemployment by providing an incentive, and the means, not to work. Each unemployed person has a ‘reservation wage’—the minimum wage he or she insists on getting before accepting a job. Unemployment insurance and other social assistance programs increase [the] reservation wage, causing an unemployed person to remain unemployed longer.”
“Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker’s incentive to quickly find a new job.”-Liberal Economist Paul Krugman’s Macroeconomics textbook.
The Same Paul Krugman recently described Sen. Jon Kyl’s (R-AZ) statement that unemployment insurance causes individuals to stay out of work longer “a bizarre point of view.”(Heritage.org)
More specifically, In the NY Times: In Mr. Kyl’s view, then, what we really need to worry about right now — with more than five unemployed workers for every job opening, and long-term unemployment at its highest level since the Great Depression — is whether we’re reducing the incentive of the unemployed to find jobs. To me, that’s a bizarre point of view — but then, I don’t live in Mr. Kyl’s universe.
So, like everything with Liberals, it’s all politics.
We, The Democrats, who have the patent on “compassion” will kiss your behind and let you sit on your ass for 2 years. As long as those evil Republicans don’t come in and demand you have some self-respect that is. 🙂
Even if they do, the Democrats will trot out their “grandma eating dog food” “they want to cut you off” “they’re heartless” “mean” “Cruel” class warfare hoaries anyhow.
Or as Mr. Krugman put it, “How can the parties agree on policy when they have utterly different visions of how the economy works, when one party feels for the unemployed, while the other weeps over affluent victims of the “death tax”?
Democrats feel your pain (good,sense they are the cause of most of it!). And Republicans are heartless, greedy and obsessed with the kiss up to “the rich”.
Meanwhile, you sit on your behind for up to 2 years eating Doritos and watching Judge Judy.
Who are you going to vote for, the pimp or Mom who says get you lazy ass off the couch? 🙂
Unemployment has become a political weapon and a tool, akin to welfare.
You don’t work, we pay you. You vote for us, we keep paying you.
Regardless of the economic and social cost.
Unemployment insurance exists for good reason, and no-one has suggested abolishing it. However, the good that it does also comes with a cost in delaying the return of the unemployed to work. Economists from right to left and in the Obama administration agree about this. Wishing it were not so does not make it true. Congress should consider both the costs and benefits of extended UI benefits when weighing how many years of benefits to provide unemployed workers. (Heritage).
But what we have now is incest at it’s best.