The past 40 years have seen huge amounts of research showing that extending the potential duration of unemployment benefits creates an incentive for the unemployed to search less and remain unemployed longer. This is one argument used against re-extending potential duration to 75 weeks. Yet most of the research describes behavior in average economic times, not when the unemployment rate is 9.5%. What little research is available suggests smaller effects when there are fewer job vacancies.
But even if that were not true, would it matter? The original, and I believe continuing, purpose of unemployment insurance is to maintain consumption of the unemployed-to prevent hardship. With 45 percent of the unemployed out of work more than 26 weeks, by far the highest percentage since the 1930s, consumption maintenance seems to argue even more strongly than usual for the wisdom of re-extending benefits.
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#2′s example of n=1 means nothing. I’d like her to get to know at least 30, and preferably 100 people currently receiving unemployment benefits, and I might listen.
Anecdotal evidence from the improperly ‘anecdoticized’ is discounted to zero.
Sure Christina, 10% of the country is out of work, another 5-7% are underemployed, there are 5 people applying for every job, but they’re all just lazy and unmotivated!
I am an unemployed American. I am one of the people continuously denied a mortgage modification. I am a single-income household who is barely surviving on the ‘benefits’ of unemployment security.
My benefits expired in early June. Do I believe I am entitled to the benefits? I cannot say. I do know that I have paid into the system for the last 21 years. I also know that I’d rather have a full time job, which pays enough to cover my mortgage and basic cost of living expenses, than too hold out for another government check.
My conscience would never have allowed me to vote against a bill that would help even one person in this economy, and then go on vacation.
I am not certain what the leaders of this country are thinking. I AM sure that they care more about figures than they do about feeding the needy of this country.
As someone who was unemployed for over 6 months, I can testify that UI does encourage laziness and incentivise sloth. While I don’t know what I would have done if I hadn’t been able to collect unemployment, I know that there were jobs that I could have taken but did not because they wouldn’t pay more than UI. Also, I had a side job in the evenings to supplement my income that I quit because every thing I earned from that job was deducted from my UI payment. Man was not made for sloth, but for productive work, and a system that makes doing nothing the best way to support your family is very broken.
I am a concerned parent. After attending school for several years, my daughter (along with others) were let go from by their employer due to a lack of funds and in her industry is still unable to find work. On top of that student loans must still be paid. And we are constantly sending out her resume looking to find work in any industry. On top of everything else, her unemployment benefits have ended. Someone please tell us… NOW WHAT?
I can’t believe anyone seriously thinks the majority of the unemployed are willingly risking being unable to support themselves and their families by not looking for work. Unemployment benefits are great but they’re certainly not enough. I’ve been out of work for six months now. I send out resumes weekly. And until this week I’ve gotten a check weekly which paid for part of my utilities, my car, gas and food. That’s about it. I’ve given up my health insurance. I no longer purchase anything I don’t need. I don’t go out to eat, to movies, nothing “fun”. My sister is paying my car insurance and property taxes and keeping a running total of what I owe her. It’s an imposition on those I love and more than a little humiliating for me. And it’s certainly not something I would voluntarily put myself through. I’m sure there are those who are cheating the system but that’s certainly not ALL of the long-term unemployed and we resent when people imply we actually like not being able to be independent and contribute to society.
Just like other transfer payments, long term UI benefits will just create a permanent underclass who are dependant on the government for their substinance in exchange for following often reduculous rules. As a result, individuals, families and communities are sucked dry of all motivation and wait for the government to provide for them at a subsistance level.
The huricane releif efforts and response the oil spill show only heartbreak when you wait for the government to save us. UI benefits need to remain a short term solution that gives the unemployed some time to get things together, needed because american society does not encourage saving for a rainy day. But 75 weeks and counting, getting on for two years, that’s dependancy.
Oh and did I mention unintended consequesces…
I’m for extending benefits for everyone except my sister-in-law. I know how she’s been spending her time.