http://www.msnbc.com/msnbc/congress-stalls-jobless-fall
In early 2008, the US passed an emergency act giving benifits to the unemployed. Recently, congress has been unable to reach a decision on whether or not to extend these benefits. Until congress is able to reach a resolution, unemployed Americans will continue to lose millions in government aid. More specifically, "By the end of March, a total of 2.2 million Americans will have lost their unemployment benefits without a federal extension." As we've discussed during lecture, this is an example of policy affecting the economic outcome.
4 comments:
Unemployment (UE) insurance is a great tool if it is used properly. Having a very long UE insurance term can very easily be taken advantage of but in the same light, the extended time could help people (particularly well educated/qualified people) find a better matching job. This in the long run could lead to drops in labor turnover. Looking at a shorter terms for UE insurance could better incentivize people to find a job sooner but at the expense of the job not being as great of a match. There is a fine line on how long these UE benefits should last, different time frames benefit different kinds of people.
I agree with Jack, there needs to be a cut off somewhere. The insurance is an all around great idea, when used correctly, but when abused can be a negative spiral. While the benefit of the extended insurance package was to give people more time to find a fit for them, it is now impacting our economy as a whole and ties directly to class discussion.
I agree with both of these comments.People can definitely take advantage of the unemployment insurance system, but I also don't think cutting everyone off helps anything. All of the people quoted in this article have held steady jobs and are currently still searching for work. However, I'm sure there are plenty of examples of people who were laid off and gave up searching because they were getting insurance money. I think with both political sides fighting it will be hard to determine where to draw the line and how much time is too long for people to be on unemployment insurance. Either way, no one seems to be benefitting from the system.
I agree with all the comments above. Unemployment insurance is designed to reduce the hardship of being unemployed. To some extent it does, but it also reduces the incentive for the unemployed to seek work. If we extend either the amount or the duration of unemployment insurance, it will increase the length of time that workers remain unemployed. The benefits provided delay the need to make tough choices about an individuals career.
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