Thursday, August 07, 2008

If You Subsidize Unemployment Benefits, Guess What Happens? You Get More Unemployment

USA Today -- The Labor Department said Thursday that new applications for unemployment insurance rose a seasonally adjusted 7,000 to 455,000 for the week ended Aug. 2, the highest level since March 2002.

The latest snapshot of layoff filings is worse than analysts expected. Economists were expecting claims to drop to around 430,000.

The new layoff figures were distorted by an outreach program to notify people that they could qualify for additional benefits under a new law.

When people went to state claims offices to apply for extended unemployment benefits, state officials discovered that some were eligible — but had not filed — for their initial unemployment benefits, a Labor Department analyst said. That accounted for some of last week's increase, he said.


According to the American Shareholder's Association, "So, if you fund more unemployment benefits, you get more people claiming them. Hardly a surprise. This report seems to indicate that about 25,000 people are now on the unemployment rolls who otherwise would be finding a job."

7 Comments:

At 8/07/2008 4:50 PM, Blogger juandos said...

Heck! These alledgedly hidden unemployment benefits are just like government cheese except they are more expensive...

 
At 8/07/2008 7:41 PM, Blogger thewitlessknower said...

fascinating idea there... giving more incentives to more people causes more people to take more benefits? wow...

 
At 8/07/2008 7:51 PM, Blogger Walt G. said...

How about if we look at it as the government stealing compensation that actually belongs to the employees? I received my last unemployment check during President Reagan's first year in office, yet my employer has paid into the fund for me every since. Just give me the cash. Trust me: I’ve already proven that I can handle money better than the government can.

 
At 8/07/2008 8:18 PM, Anonymous Anonymous said...

For you, Walt G.:


What does my employer have to do with my unemployment payment? I am the one putting in the money, aren't I?

Answer:
Actually, the money that you collect in unemployment benefits is drawn from taxes contributed by employers; not a cent of it comes from you or out of your paycheck.

http://www.michigan.gov/uia/0,1607,7-118-1535-78920--F,00.html

 
At 8/07/2008 9:50 PM, Anonymous QT said...

Not where I live, buddie. In Kanuckistan, employer and employee both are subject to unemployment premiums.

 
At 8/08/2008 5:45 AM, Blogger Walt G. said...

anonymous 8:18,

Technically, No. Employers budget for labor expense, which includes unemployment, their share of social security, workmen's compensation . . . . Accordingly, that is money that could be paid directly to you--it's already budgeted for your labor as a business expense anyhow.

 
At 8/09/2008 9:36 PM, Blogger juandos said...

"Actually, the money that you collect in unemployment benefits is drawn from taxes contributed by employers; not a cent of it comes from you or out of your paycheck"...

Regardless of the money spent on Michigan's propaganda arm, I do believe that the money one receives in what is laughingly called unemployment compensation is coming from the general fund...

 

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