Why Unemployment Benefits Should Not be Extended–Again, Part II

Yesterday, I discussed the problem in extending unemployment insurance. Today, I want to give you an example of why this is counterproductive.

We know of someone who lost his job more than a year ago. He has two children. His wife has a part-time job. He is searching for a new position, but hasn’t found one, at least not one that pays what his former job did. He won’t take one that pays less—or at least much less.

Why? His kids would lose the government-funded health insurance that they receive. He would lose his unemployment benefits. Here’s a guy who has had opportunities to work and get a paycheck, but won’t because he loses the government handouts he receives.

What would happen if he no longer received the government healthcare and unemployment payouts? Do you think he might search for a job–any job–then?

I think he would.

I’m wondering how long this guy is going to hold out for a higher-paying job. A year–two?

Or is he going to remain on government welfare (with the misleading name of unemployment insurance) until the government stops giving it out? How likely is it that he gets a job he considers acceptable after being out of work for two years–or more? How likely is it that anyone finds a job that compares to the one they lost after being out of work that long?

I think the government is harming people by continuing to extend unemployment insurance. Granted, individuals pay a tax (albeit very small) that contributes to unemployment benefits, and it certainly is helpful for people to have these benefits to fall back on, especially when they unexpectedly lose their jobs.

But long-term government handouts tend to discourage people from facing the reality that they may not get another job that pays as well as the one they lost, and they may have to take less for a time to get a job. And repeatedly extending the amount of time the unemployed will collect unemployment doesn’t help either.

Tomorrow: Some ideas that Congress should consider if they are going to extend unemployment benefits—again.

aln

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3 Responses to “Why Unemployment Benefits Should Not be Extended–Again, Part II”

  1. ady Says:

    You are SERIOUSLY out of touch….

    • thomasjeffersonclubblog Says:

      Actually, I am very much living in reality. Those who think we can continue to spend money we don’t have are the ones who are out of touch. The more borrowed money we spend, the deeper the hole we dig for ourselves.

      Curbing unemployment is actually not as painful as some of the cuts we’re going to have to make in other entitlements.

      aln

  2. Why Unemployment Benefits Should Not be Extended–Again, Part II … | The Daily Conservative Says:

    […] the rest here: Why Unemployment Benefits Should Not be Extended–Again, Part II … Share and […]

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