House Approves Bill To Expand Unemployment Entitlements/Make Unemployment Worse

Sigh…

NEW YORK (CNNMoney.com) – More than a million people could receive an additional 13 weeks of unemployment benefits under a bill approved by the House on Tuesday.
The bill extends benefits for those living in states with jobless rates higher than 8.5%. Some 27 states, plus the District of Columbia and Puerto Rico, fall into this category. The national unemployment rate hit 9.7% in August, the highest in 26 years.

The problem with expanding unemployment entitlements is that it makes it easier to be unemployed. As long as there is a cushy government “safety net” to fall back on a lot of people who are out of work have no impetus to find work again. So not only do these expanded entitlements represent an additional burden to the individuals and businesses who we want to be creating jobs, we’re making it easier for the people we want to go back to work to stay unemployed.
And you don’t have to take my word for it. The Institute for the Study of Labor in Bonn, Germany (hardly a bastion of right-wing conservative thought) concluded in a study in 2008:

The evidence suggests that benefit generosity increases unemployment. We view this evidence as fairly robust since the estimates are similar across alternative specifications. The magnitudes involved are rather substantial and appear to be relatively high compared to estimates available elsewhere in the literature.

Expanding unemployment benefits expands unemployment. There is no denying this.
What Democrats are trying to do will make things worse.

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  • http://www.bikebubba.blogspot.com/ Bike Bubba

    The only bright side to this bill as it stands is that it sets up a nice comparison; you will have the high unemployment states getting worse while low unemployment states are relatively better. It should provide some data that remind us next time why we shouldn’t write moral hazard into our laws.

    Not that the left side of the aisle will pay attention, of course.

  • http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

    Yes, who wouldn’t rather take that 40 or 50 dollars a day, feed 2 kids and yourself, pay the rent, pay the electric bill, pay the water bill, pay the gas bill, pay the credit card bill, pay the doctor bills, pay for gasoline, pay the car insurance bill, pay the health insurance bill, and just kick back and enjoy the life of leisure all brought on by big govmint cheese handouts because the company you worked for sent your job to the Mariana’s while the CEO gets his multimillion dollar bonus?

    Image and video hosting by TinyPic

    Who wouldn’t want that for their kids?

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    RCB, now tell me again what might make someone move a factory to an island in the Pacific. Maybe it could have something to do with “Detroiters won’t work for less than their unemployment checks”?

    Woof, well done with the pictures. Herbert Hoover’s big government spending, documented well in Murray Rothbard’s “America’s Great Depression,” helped to sustain and deepen an ordinary recession. This move by Congress promises to do the same.

    Note also the practice of destroying wealth in the Seattle Hooverville. Just like “cash for clunkers.”

  • sayanything-5371

    I can’t think of very many good reasons why we should strive to be the country with the most intelligent gas station clerks and burger flippers.

    Don’t flatter yourself. If you worked at a gas station or flipped burgers you would still be stupid.

  • Mickey

    This is Obama’s economy.

    Obama made industry the enemy of the state. Stop punishing business with all these threats of new taxation. Stop the ridiculous Health Care scam. Stop the fear mongering. Stop the asinine global warming scare. Stop demonizing the nation Obama. Try governing from the center. Reward everyone not just the unions and the welfare recipients. Stop lying.

    Stop being a jack ass Barry.

  • Craig Travis

    I’m sure you recieve benefits from the government. For you to take yours and then complain about others getting their’s is about the lowest you can go. It reminds me of what they asked McCarthy, “Have you no decency, sir?” Can anyone stand you?

  • robert108

    I’m sure you recieve benefits from the government.

    The people who pay taxes in this country pay for everything; the govt owes them repayment. Those benefits come from the taxpayers. The complaints are about non taxpayers getting “benefits” at our expense, minus the chunk the greedy govt takes for itself, it’s bloated salaries and lavish benefits and pension plans.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Craig, Woof, now explain to me how putting more federal money into the unemployment insurance program is simply what the unemployed are entitled to. Sorry, it’s obviously not money they paid in, and the game of “well you receive something from the government too” is a dodge.

    Let’s concentrate on the basics; given that most people “amazingly” find a job in their last week or so of unemployment insurance eligibility, is it economically wise or foolish to extend benefits?

    My answer is that it’s incredibly foolish, because the data show that you’re just paying them NOT to find work. It’s also the cruelest thing you can do to the unemployed.

  • Spartacus

    There was a time when receiving any form of welfare was considered something not to be proud of. When you found yourself in that position you’d do anything, work 2 or 3 jobs, flipping burgers and scrubbing toilets at gas stations if necessary, to get off of it.
    Since the ’90′s there’s been a growing class of individuals that apparently lack the self respect it takes to remove themselves from the dole. Some are proud of the fact they’re sponging off of the efforts of their neighbors via the government, they’re funemployed or some other term they come up with to mask the fact from themselves that they’re living off of welfare and have no pride. Near as I can tell they’re the irresponsible generation.

  • Spartacus

    You collect unemployment insurance benefits because you’ve worked and payed into the program. That’s why people are entitled to collect.

    Same as social security, right? You might want to try to explain that philosophy sometime to Dino or Ellinas. Good luck with that if you choose to try.

  • Spartacus

    Get it?

    Yeah, I get it. By your philosophy if my house is old and i want a new one, just buy insurance and accidentally have it destroyed. Then, because I paid $1200 a year to insure it I’m entitled to a new one and all new contents too. Yep, I get that line of thinking, I know too many that think that way. And I’m thinking you all fit into that generation I mentioned. God help this country.

  • Spartacus

    …let’s create more ways to avoid being responsible for our own personal well being, after all that’s why we have a government, right?

  • 360

    You are all missing the gravy of the program. Collect the unemployment AND work under the table somewhere until the benefits run out.

    That’s how you work it.

  • TheTodd

    It seems to me that unemployment benefits are most effective in preventing underemployment–without them, the recently laid-off individual would almost be forced to accept the very first job offered to him, regardless of quality.

    Maybe that’s a good thing. I don’t know. I can’t think of very many good reasons why we should strive to be the country with the most intelligent gas station clerks and burger flippers.

  • Spartacus

    I can’t think of very many good reasons why we should strive to be the country with the most intelligent gas station clerks and burger flippers.

    No Todd, I’m sure you can’t. Especially when you can sit on your ass doing nothing but becoming a lethargic couch potato addicted to Opra while being handed a living at your neighbors expense. Aspire loser!

  • Spartacus

    ^ I guess that should be “Oprah” not “Opra”, mostly only those that don’t work or work off shift would the difference!

  • Spartacus

    Don’t flatter yourself. If you worked at a gas station or flipped burgers you would still be stupid.

    I wouldn’t say that WHFF, if the libs have their way taxing those that employ others we’ll all be welfare deadbeats when all the jobs outsource to countries with lower corporate tax levels. Think about it. If you started a business, would you start it in a country where almost half of what you earn goes back to the government and you still have to make the initial investment to start the company? Fuck that shit, I’d go where I could find the most favorable conditions for me, don’t like that, don’t apply to work for me. If you choose to apply to work for me and accept working for me, you’ve agreed to my terms, I haven’t agreed to yours. That’s the way it works, lazy fucks that expect more than their willing to give seem to see this from a different, obscure, perspective.

  • ellinas

    Did anybody mention that the subjects of the study receive 60 weeks of benefits?
    That is over a year. Fourteen months.
    The study also refers not to the time frame of Unemployment Insurance, but to the amount, as in money,(how much) of the benefit is received.

  • Spartacus

    See ya Spartacus,

    See ya Woof. Be sure to write about how that getting blood from a turnip works out for ya!! Aspire!

  • budsmoke

    Did anybody mention that the subjects of the study receive 60 weeks of benefits?
    That is over a year. Fourteen months.

    Are you saying that the study results are negatively skewed because we are comparing 60 weeks with 13 weeks? If that was your point, I think I may agree with you there. Could you elaborate more on that statement to be sure?

  • ladida

    Maybe it could have something to do with “Detroiters won’t work for less than their unemployment checks”?

    As a Detroiter, I have to say that yours is an unfounded statement. I’m a teacher, I don’t work in the automotive industry, but I know plenty of people who do, or did, rather. CEOs shutting down plants is the reason why Detroit has such a high rate of unemployment, not because people would rather just live off of the “cheese,” as someone put it.

    I know plenty of people who are hard working, who have families, that had their lives collapse because of layoffs at plants. Not only Ford and GM, but suppliers, too. My parents own a business that does electrical contracting in Detroit. Nothing near automotive, but they’ve been hit hard because GM used to give them a lot of contracts, and now construction has been halted, and electrical work isn’t needed.

    Everyone is entitled to their opinion, but please do not say that people are not working because they’re fine with collecting unemployment. Unemployment doesn’t cover the costs of a family. It doesn’t cover the cost of medical bills. No one I know wants to be on unemployment.

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Ladida, are you seriously trying to claim that it’s a good thing that the unemployment insurance system is paying laid off autoworkers to stay unemployed for close to two years?

    Let’s be serious here; you sit on your rear end for that long, you’ve just lost the job skills to get a decent job, and your health isn’t exactly going to be brilliant, either.

    Michigan, especially the eastern area around Detroit, needs to get it through its head that you earn prosperity; you are not entitled to it because of your UAW membership. 30 years of on the job retirement does not entitle you to a pension during your official retirement, nor should the taxpayer be on the hook for paying for the heart condition they earned while sitting on their rear.

    (BTW, my wife is a Michigander, I went to State, and sorry, we’ve seen what goes on….J)

  • ellinas

    Yeah, I get it. By your philosophy if my house is old and i want a new one, just buy insurance and accidentally have it destroyed. Then, because I paid $1200 a year to insure it I’m entitled to a new one and all new contents too. Yep, I get that line of thinking, I know too many that think that way. And I’m thinking you all fit into that generation I mentioned. God help this country.
    Spartacus on September 23, 2009 at 02:53 pm

    On top of being a “con” you are an arsonist.
    You will not get a penny. Only a cell in a nearby jail.
    God help this country.

  • ellinas

    Are you saying that the study results are negatively skewed because we are comparing 60 weeks with 13 weeks? If that was your point, I think I may agree with you there. Could you elaborate more on that statement to be sure?
    budsmoke on September 23, 2009 at 05:57 pm

    No I am saying this: “The study also refers not to the time frame of Unemployment Insurance, but to the amount, as in money,(how much) of the benefit is received”.Please read the study, draw your own conclusions and post them.
    The we can proceed with comparison, and possible agreement or disagreement.

  • WOOFX

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    Image and video hosting by TinyPic

    Image and video hosting by TinyPic

  • WOOFX

    See ya Spartacus,

    Fuck that shit, I’d go where I could find the most favorable conditions for me, don’t like that, don’t apply to work for me.

    For The Money

  • WOOFX

    Insurance .
    You payed $800 for comprehensive on your car.
    You run off the road in an ice storm onto a frozen lake ,your car sinks in 20 feet of water.You survive by floating to the surface buoyed by stuffing empty big gulp cups, discarded under your seats, into your jacket.
    Your car is destroyed. Are you entitled to only $800?
    Get it?

    The good old days when a man went to work and his wife stayed home raising the kids and braking bread. Even more gooder days when sturdy yeomen wrenched everything a family needed from the land.

    There was a time when receiving any form of welfare was considered something not to be proud of.

    Those were notthe good old days. People stood in line for soup, watched familiy members wither and die.

    Now two or three people in a family work to maintain a family.
    Bubba and Spatacus are convinced that placing people in the most dire economic circumstances is what’s needed.

  • WOOFX

    You collect unemployment insurance benefits because you’ve worked and payed into the program. That’s why people are entitled to collect.

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