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Do unemployment benefits prolong unemployment?
The Examiner ^ | April 18, 2010 | Christine Wodke

Posted on 04/18/2010 7:55:20 PM PDT by 2ndDivisionVet

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I'm of two minds about this issue. What do you think?
1 posted on 04/18/2010 7:55:20 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

duh!


2 posted on 04/18/2010 7:59:32 PM PDT by Chuckster (Domari nolo!)
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To: 2ndDivisionVet
Yes, and maybe, if job market is operative and jobs are available that are somewhere in the ball park of existing labor supply! Maybe not if job supply is inadequate and/or not matching labor skill sets!
3 posted on 04/18/2010 7:59:46 PM PDT by J Edgar
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To: 2ndDivisionVet
I think they most certainly do. Consider this, to collect one’s benefits one must apply for at least 3 jobs per week. In many fields it's difficult to find very many appropriate openings, but if you do perchance find say 5 do you apply for all 5 in one week, or apply for 3 one week and use 2 for the next week and just have to find one more to meet the requirement for that following week? The result, you end up applying for fewer positions so you don't run out of qualifying job openings to apply for.
4 posted on 04/18/2010 8:03:23 PM PDT by highlander_UW (First we take down the Democrats, then we clean the Augean stable that is the GOP.)
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To: 2ndDivisionVet

Threats of taxes ,fee’s bank takeovers, manufacturing takeovers ,threats from the epa,glo bull warming ,cap and tax,increasing government will keep jobs turned off.

But you take the unemployment payments away from 8+ million people and this government would fall in six months with the folks doing things they normally would not do.
yep bad situation


5 posted on 04/18/2010 8:09:29 PM PDT by Tigen (I shall raise you one .)
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To: 2ndDivisionVet

>>I’m of two minds about this issue. What do you think?<<

The facts are pretty strong: many studies show that extending unemployment benefits extends unemployment.

As far as keeping a reserve fund goes. Well, I sacrificed (I have tube TVs in my house and a 12 year old ‘fridge for example — and pay cash for everything) to keep a 6 month cash reserve should the worst befall me. I also make it a point to keep my professional knowledge tools sharp and my contact list active.

It is a lot of work and going without. If people won’t do the same, they won’t get much sympathy from me. If you have a 60” flat screen in the parlor, 37” of same in the bedrooms, high speed internet, and Direct TV HD (with HD DVR) in every room then you (not you, 2DV, I mean the observer) can sink.

I know bad things happen — but how long is Mama Gummit (paid for by those of who DO look to the future) supposed to keep her teat out? 24 weeks? 52 weeks? 104 weeks? 208 weeks? Birth ‘till death?


6 posted on 04/18/2010 8:09:41 PM PDT by freedumb2003 (Craven spirits wear their master's collars but real men would rather feed the battlefield's vultures)
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To: 2ndDivisionVet

No doubt in my mind the effect is real — not for everyone but for some. Have seen it among people I know.

I think it is especially likely when a household has two incomes and one person is laid off. When there is still a fulltime salary and benefits, the unemployment check may be enough of a supplement that the laid off person has little incentive to hunt for a job.


7 posted on 04/18/2010 8:11:00 PM PDT by freespirited (I'm against a homogenized society because I want the cream to rise. --Robert Frost)
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To: 2ndDivisionVet

There is ample evidence that unemployment benefits extend unemployment. In this recession, a number of unemployed have received subsidized tuition to obtain a university degree while unemployed. This recession has been especially hard on white collar work in many areas. Jobs in the private sector are not being created at the rate that one would expect as the country emerges from a recession. The rats have put fear and loathing into the private sector.

Here is a reverse impact of unemployment insurance (UI). UI rates increase for firms that layoff workers. This perverse effect causes firms to be risk averse in hiring decisions. Firms postpone hiring decisions to avoid the UI penalty.


8 posted on 04/18/2010 8:18:45 PM PDT by businessprofessor
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To: 2ndDivisionVet

That which you subsidize you will get more of.


9 posted on 04/18/2010 8:23:55 PM PDT by ThunderSleeps (obama out now! I'll keep my money, my guns, and my freedom - you can keep the change.)
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To: 2ndDivisionVet

well, my thoughts on this would be the same for welfare in general as well. ANYONE receiving government supplemental income whether it’s unemployment, food stamps, HEALTH insurance (by the way the poor always had access to this, so where did they get their argument ?) and who is able bodied and of sound mind, should be forced to do community service. Help fix roads for free. How about making them hold the stop sign for 6 hours a day ? They should be out painting over graffiti etc... Seems like a cost effective way to save some money in local and state budgets. And the upside is it will deter many from slacking off in life. There is a job anywhere and people need to stop thinking that any job is beneath them. I’ve done some crappy jobs but it’s lead to my current place in time, without college too.


10 posted on 04/18/2010 8:24:25 PM PDT by TheRevolution1776
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To: 2ndDivisionVet

Is the Pope Catholic? OF COURSE IT PROLONGS IT.


11 posted on 04/18/2010 8:24:51 PM PDT by Hildy
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To: highlander_UW

In CA, you “could” get away with 5 job applications to show the gubmint’ you are out looking for a job. My EDD buddy who works for the State that with the amount of people applying for E/U I, it’s close to impossible to verify if the recipient did apply for the company that he wrote down. FYI, the job training courses are nonsense.


12 posted on 04/18/2010 8:25:16 PM PDT by max americana
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To: 2ndDivisionVet

It does I’m sure. However, there are no jobs out there now. If they yanked UI, then people would just be on the streets and so on. So in most cases it’s not a good idea to keep them going forever, but until things turn around there’s no way they should be stopped.


13 posted on 04/18/2010 8:28:11 PM PDT by Tolsti2
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To: max americana
In CA, you “could” get away with 5 job applications to show the gubmint’ you are out looking for a job. My EDD buddy who works for the State that with the amount of people applying for E/U I, it’s close to impossible to verify if the recipient did apply for the company that he wrote down. FYI, the job training courses are nonsense.

In WA state it's 3...5 would make it even more likely people will apply for the minimum so they don't run out of real jobs to apply and claim for each week. The system subsidizes a prolonged search.

It is probably nearly impossible to check on the validity of claimed applications. I know I've always reported the truth on where I've applied when I was on unemployment...obviously not everyone has the same tie to honesty.

14 posted on 04/18/2010 8:29:36 PM PDT by highlander_UW (First we take down the Democrats, then we clean the Augean stable that is the GOP.)
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To: All

Under normal circumstances, yes. This is not normal circumstances. There isn’t a large number of unfilled positions out there and people just don’t apply. There are a lot of people who would gladly give the puny extended unemployment benefits for a real job.

Sometimes Freepers take a pre-depression idealogue and apply it to now. THINGS ARE NOT THE SAME!


15 posted on 04/18/2010 8:32:41 PM PDT by autumnraine (America how long will you be so deaf and dumb to the chariot wheels carrying you to the guillotine?)
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To: TheRevolution1776
One of the problems with the hard core unemployed is that it's cheaper to send them money to stay away. Outfit I worked for hired a "youth program" to mow the lawns. After the first two times they showed up, we had to start locking all the doors. If they needed to use the bathroom or wanted to use the drinking fountain one of my workers had to escort them. Why? They stole anything that wasn't nailed down and we found some crack cocaine on the floor after they left once. One of them had come in and bought some candy from our fund. We're pretty sure it fell out of his pocket while he was getting his money.

There are some people out there seriously looking for work, but when the unemployment rate gets down to five percent, whoa nelly.

16 posted on 04/18/2010 8:33:24 PM PDT by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: highlander_UW

I was on unemployment 3 to 4 years ago, and every 2 weeks you received the form with 10 SLOTS. I completely filled out 10, and have the e-mails to prove it, just in case. My objective back then, was to make contact at least 5 a day as a sense of accomplishment for the day.


17 posted on 04/18/2010 8:34:55 PM PDT by max americana
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To: ThunderSleeps

That which you subsidize you will get more of...says it all simply!!


18 posted on 04/18/2010 8:35:38 PM PDT by YouGoTexasGirl
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To: 2ndDivisionVet

When I lived in Michigan, I personally observed that every UAW worker I knew, milked their Unemployment benefits to the hilt. I see the same thing today in my home State; people do not even look for a job until their benefits are close to running out. FOR REAL!!!


19 posted on 04/18/2010 8:40:47 PM PDT by no dems (Palin / Rubio 2012)
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To: max americana
I was on unemployment 3 to 4 years ago, and every 2 weeks you received the form with 10 SLOTS. I completely filled out 10, and have the e-mails to prove it, just in case. My objective back then, was to make contact at least 5 a day as a sense of accomplishment for the day.

Apparently different states have different numerical requirements.

20 posted on 04/18/2010 8:41:27 PM PDT by highlander_UW (First we take down the Democrats, then we clean the Augean stable that is the GOP.)
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