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Extending unemployment benefits means EXTENDING UNEMPLOYMENT

Posted by on Jan. 5, 2014 at 7:14 PM
  • 56 Replies

 5 Jan 2014, 11:29 AM PDT 

President Barack Obama has made extending unemployment benefits his #1 policy priority for 2014, in service of his attack on inequality. It is a theme that served him well in his 2012 re-election campaign. Republicans are responding by demanding budget cuts to offset the additional spending that extended unemployment benefits would require. Both sides are missing the key empirical point: longer benefits lead to higher unemployment.

That point was made by economist Robert Barro back in 2010, when he calculated that the extraordinary step of extending unemployment benefits to 99 weeks, rather than a more modest 39 weeks, had kept unemployment 2.7% higher than it would otherwise have been. The reason? Incentives matter. People are more likely to seek jobs, or to start their own businesses, when they know that they can only collect unemployment for a short time.

Democrats, and the Obama administration, argue that because the average time of unemployment has been far longer during this recession/recovery than in most, longer unemployment benefits are needed. Yet they mistake the cause of longer unemployment for the remedy. In fact, Barro pointed out, longer benefits actually subsidize unemployment--which is why Europe, with its generous benefits, has suffered a chronically high jobless rate.

The White House plans to sell its proposal by highlighting the sorrowful stories of those who have been out of work for months on end and who stand to lose their only source of income. Democrats are even arguing that cutting back benefits would cost jobs by reducing consumer spending. The truth is exactly the opposite--which is why GOP willingness to accept extended benefits if they are paid for is politically and morally inadequate.


by on Jan. 5, 2014 at 7:14 PM
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Replies (1-10):
Sat.Wed
by Bronze Member on Jan. 5, 2014 at 9:23 PM
3 moms liked this

Well it doesnt help when people REFUSE to accept a job just because it may mean a pay cut I get that yes times are tough etc... my position was "done away with" in November I found a new job no Im not making as much as I was BUT Im FULLY employed and able to STILL meet my monthly expenses I only had to "borrow" from my parents last month to help fix my car ( battery and alternator and an idle pully needed replaced) BUT I paid them back with the following check, BUT I do see what you are saying Miss Sally the problem is some people have become "accustomed" to NOT having to work for a "check" that the thought is "scaring" them and they are boo hooing now ftr I am a SINGLE mother of 2 chidern one child has medical issues

gsprofval
by Gold Member on Jan. 5, 2014 at 9:32 PM
2 moms liked this

It just seems like too many people haven't even tried to find employment.  Of course, the best way to help the jobs outlook is to dump bHo care so that companies can expand as they should in a capitalistic society.

Sat.Wed
by Bronze Member on Jan. 5, 2014 at 9:37 PM
4 moms liked this

Most havent or like I said they refuse to accept a job because its "below" them, I see it at my job, there are peope whom are on unemployment that they ONLY reason they are filing out an appication is so they can "claim" they are  looking so they get the "check" or they get hired dont want to really be there and just stop showing up so that they can be "fired" etc.....

Quoting gsprofval:

It just seems like too many people haven't even tried to find employment.  Of course, the best way to help the jobs outlook is to dump bHo care so that companies can expand as they should in a capitalistic society.


-Celestial-
by Pepperlynn on Jan. 5, 2014 at 9:55 PM
2 moms liked this

Yep, those freeloading unemployed have been living the good life on their $300/week benefit for too long!


And the term "Overqualified" is killing peoples search for employment. 

Sat.Wed
by Bronze Member on Jan. 5, 2014 at 10:11 PM
4 moms liked this

Where are you getting $300/week????   I know quite a few people whom are getting almost $700/week and are boo hooing because they are losing their benefits, and Oerquiflied  is a LIE its people REFUSEING to work at certain pay grades or at certain employment because its a "junk job" or its "below" them when you hae people that EXPECT to get a job making EXACTLY as much as they were before there in lies the problem



Quoting -Celestial-:

Yep, those freeloading unemployed have been living the good life on their $300/week benefit for too long!


And the term "Overqualified" is killing peoples search for employment. 


JoshRachelsMAMA
by JRM on Jan. 5, 2014 at 10:13 PM
7 moms liked this
They need to let this die for good and not renew extensions.
Lilfootmommy
by Littlefoot on Jan. 6, 2014 at 11:15 AM
1 mom liked this
That's funny my mom can't get a job BECAUSE and only because she is overqualified, good thing she doesn't need one huh?

Quoting Sat.Wed:

Where are you getting $300/week????   I know quite a few people whom are getting almost $700/week and are boo hooing because they are losing their benefits, and Oerquiflied  is a LIE its people REFUSEING to work at certain pay grades or at certain employment because its a "junk job" or its "below" them when you hae people that EXPECT to get a job making EXACTLY as much as they were before there in lies the problem



Quoting -Celestial-:

Yep, those freeloading unemployed have been living the good life on their $300/week benefit for too long!


And the term "Overqualified" is killing peoples search for employment. 


Sat.Wed
by Bronze Member on Jan. 7, 2014 at 1:17 AM
5 moms liked this

Wow snooty much??? I am "overqulifed" for what I am doing yet oh gee I HAVE a job so I dont buy that excuse and YOU missy did NOT need to be rude

Quoting Lilfootmommy: That's funny my mom can't get a job BECAUSE and only because she is overqualified, good thing she doesn't need one huh?

Quoting Sat.Wed:

Where are you getting $300/week????   I know quite a few people whom are getting almost $700/week and are boo hooing because they are losing their benefits, and Oerquiflied  is a LIE its people REFUSEING to work at certain pay grades or at certain employment because its a "junk job" or its "below" them when you hae people that EXPECT to get a job making EXACTLY as much as they were before there in lies the problem



Quoting -Celestial-:

Yep, those freeloading unemployed have been living the good life on their $300/week benefit for too long!


And the term "Overqualified" is killing peoples search for employment. 



StephanieSH
by on Jan. 7, 2014 at 1:50 AM
2 moms liked this
A lot of companies won't hire overqualified people bc they think they aren't in it for the long haul. I was laid off from my teaching job and I also happen to have my law license. I collecting unemployment and I haven't been able to find a teaching job bc it's the middle if the school year and jobs are few and far between. Especially social science teachers. Lawyer jobs are almost nonexistent. A lot of schools won't even consider me for teaching bc a JD is equivalent to a phd on the pay scale and they don't want to have to pay me more than someone else with the same experience but without the burden of the extra pay. I trying to start my own legal practice but it takes a lot of capital to start one up and you have to work a long time before you really make any money and I still have $65,000 in student loans. I live in Los Angeles where the cost if living is high but my husband's job is here and our entire support system. Luckily we have kept our expenses pretty low by staying in our "starter"
home so our mortgage is pretty good.
ndlptnau
by Member on Jan. 7, 2014 at 4:21 AM
1 mom liked this

I am 66 years old and have been applying steadily for jobs since I was laid off over 9 months ago.  I have not and won't refuse ANY job as beneath me. I have a good work history and a BS degree but evidently I am too old to hire. I am very frustrated and I need a job. I am not and will not be picky. The $156 a week I was getting from unemployment (I was a 30 hour a week employee who had been asking for more hours) was not so generous that I didn't need to go to work but it did help put gas in my car so I could job hunt. 

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