Sunday, April 17, 2011

Are unemployment benefits now a Government dependency trap?

Unemployment benefits as we now know have become a political football. Just what it is and how it serves the working class is maybe a little lost. Unemployment is a tax payer funded program of temporary relief for laid off workers or workers who have lost their jobs permanently.  By definition employers help fund unemployment but as is the case with all costs of doing business these cost are passed on to the consumer and can be equated as another regressive government tax. It can be safely said we the people pay for the unemployment checks. Currently we are in debt and the new Government extended unemployment checks are on the backs of future generations. Unemployed workers under current law will receive money for 99 weeks about 2 years which will be extended soon. As most know unemployment was to have a 26 week limit.

 The Socialist country of Denmark once paid unemployment for 5 years but found most did not seek real work until the benefits ended so the socialists reduced the benefit to 4 years and last spring reduced it further to 2 years. Our Nation seems to be heading in the other direction.

There has been and still is some abuse of unemployment benefits in our country. Some seasonal and most construction workers use unemployment as an augmentation employment income, tax payer paid vacation if you will. They know and understand unemployment is part of their work year and unemployment benefits rightly or wrongly have become part of their life style. Many young two income families that have a parent laid off find they are better off with unemployment checks as the daycare and other costs are no longer a burden. A parent at home is a hard thing to give up. A side bar; is the high burden of regressive sales tax, regressive fees, regressive excise taxes, regressive property taxes, regressive consumption taxes, and regressive FICA taxes, forcing both parents to work outside the home?

Some unemployed suffer from depression and grief from their job loss they must seek help. If an area lacks jobs, relocating must be an option. There are also job training programs available. People tend to be healthier more emotionally stable and live longer if they are productive. Sloth is an all too human trap some can find themselves in. My experience has shown me unlike most parents your Government will enable sloth for political purposes. We probably need a debate in this country as to whether unemployment benefits should be a permanent welfare entitlement or a 6 month limited helping hand. There was a time in Mining communities when workers moved on to other areas when the Mine petered out and job opportunities ended (Ghost Towns). Now unemployment, SSI, and welfare keep working age people in place with little or no job prospects, this also holds somewhat true for welfare ghettos in large cities. This may not be a good thing.

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