Why We Have Unemployment Insurance Rather Than Public Works

12 Responses to “Why We Have Unemployment Insurance Rather Than Public Works”

1. martin kennedy writes
   November 6th, 2009 12:04 pm

   Of course. The “disemployment effect” is real and a big problem. Theoretically a market economy should never have a problem with long term unemployment. To reduce it….

   Eliminate all wage controls (Minimum Wage). Income subsidies should be used to achieve greater equity. Don’t tax labor (no payroll taxes at all). Reduce all regulation associated with hiring people.

   The costs, in terms of lost productivity, associated with unemployment are large. The costs, in terms of human dignity, are larger.

2. Andy writes
   November 6th, 2009 12:30 pm

   hmm…. interesting theory. It seems to me that a WPA/CCC type re-employment makes sense. Instead of just extending benefits, offer UI for the normal time period, then after 6 months, offer the “extended” benefits in exchange for a minimum of 20 hours per week of work (allowing time in the week for the unemployed to seek more permanent employment). You keep getting your check, you do some work, and we all reap the benefits.

   Let’s see that proposal hit the floor in the House or Senate.

3. Mark Rogers writes
   November 6th, 2009 2:39 pm

   The proposal makes sense but it is not going to work today. The entitlement mentality that has grown in America since the New Deal managed to outlive the Depression will never allow it.

4. Andy writes
   November 6th, 2009 3:13 pm

   why not try it? Will Senator Bob Corker of TN stand up on the floor and sponsor this bill? Try it. See what happens.

5. Mark Rogers writes
   November 6th, 2009 3:20 pm

   I would strongly urge Senator Corker to sponsor the bill if you will stand beside him when some on the Left accuse him of endorsing endentured servitude or hurting the wages of unskilled workers.

6. Mack writes
   November 6th, 2009 4:20 pm

   I’ll stand beside him if he does. I remember my dad telling me about CCC camps. He learned skills there he used the rest of his life.

   Mark, it seems disingenuous to suggest that Americans would rather live on the dole than work, when the argument against immigration seems to be that there aren’t any jobs Americans won’t do. I have friends that would happily do real work for their unemployment benefits, but why picking up trash? What about learning to repair engines? Or frame a house? Or wire or plumb? Or, maybe write code, or fix computers. We have millions of people locked up in this country, can’t some of the ones that want to pick up trash?

7. Mark Rogers writes
   November 6th, 2009 4:33 pm

   Mack,

   You miss the key point. Many Americans do not see programs like unemployment insurance as the ‘dole.’ They see it as something they paid for and, if they get more than they invested, so what. They know that some seniors get far more than they ever put in and they know that younger Americans will never get anything out like they would have gotten from privte investment. So why shouldn’t they get unemployment extensions?

8. Andy writes
   November 6th, 2009 4:45 pm

   I think Mark is being a tad cynical here. Since no one is standing up and putting this bill forward, we don’t know.

   Let’s try it. I’m betting that lots of people getting UI would love to actually WORK toward something that benefits the community.

   I believe in America and Americans. And, let’s call on the Senators from our state to lead the charge — Come on, Bob Corker. Introduce legislation of substance.

9. Mack writes
   November 6th, 2009 6:45 pm

   The entitlement mentality that has grown in America since the New Deal managed to outlive the Depression will never allow it.

   Then, what did this mean with respect to unemployment benefits?

10. Mark Rogers writes
    November 7th, 2009 3:53 pm

    Mack,

    I think a large number of Americans would say that they paid into the unemployment system and it is unfair to ask them to work for what they paid for.

    Much like all the senior citizen who don’t need social security and who have already received vastly more than they paid in but demand it since they paid for it too.

11. Donna Locke writes
    November 7th, 2009 6:54 pm

    We have to create industry at the local level, not wait for it to come to us. Some places have done this. We must think in those categories: industry we could initiate and grow ourselves.

12. Mark Rogers writes
    November 7th, 2009 7:16 pm

    Donna,

    While I agree with Mack about the value of having recipients of extended unemployment benefits, the larger issue is that until we refocus our economy on rectifying the transer of wealth to other nations, nothing we do will produce long term positive results.

    The New Deal was able to achieve its limited successes because America was The Creditor Nation of the world. We could afford deficit spending because we could draw on huge reserves of wealth.

    Today that is not true and all the stimulus jobs in the world will not restart the economy until more wealth comes into the US than leaves.