Congress has voted, all over again, to extend unemployment positive aspects. Currently, one can receive unemployment extension for about 99 weeks, which is in close proximity to two years. Realistically, voting to never extend unemployment benefits is probably political suicide for a Congressperson or Senator. But refusing to increase this government benefit is usually the right course of action.
The continual extension of unemployment benefits may seem, on first blush, to be a compassionate outreach of our government to those who have been hit hardest by the dishonesty, corruption and outright theft that have characterized both Wall Street and D. C. for many years. In fact, it's harming both the unemployed along with the economy.
Unemployment insurance was manufactured for short-term job loss that was no fault of your employee, such as lay-off. It can be paid for by businesses, like me. When we let someone go, it can also be "for cause" or "not for cause. " If "not with regard to cause, " unemployment begins to pay out. If the person had been fired for, say, insubordination, unemployment insurance was originally that will pay less or nothing, as the job loss was seen as the employee's fault. Easily let someone go without the need of cause, the rate of my "insurance premium" (tax) can move up, especially if I permit several people go.
Need I explain that the system doesn't exactly work in this way anymore. Employers who contest the unemployment claims of even the worst employee fired for cause emerged as cruel and heartless. They will, or their representatives, can spend expensive hours and days preparing for and defending the contesting of the unemployment claim. They face a method biased against employers, nevertheless, so many employers don't even bother to contest the claim. They pay up which has a grimace.
Now, there is really no such thing as a tax on a company. A business is no individual. So taxes on businesses really end up as taxes on their own customers. If I, for a business, get "soaked, " those costs either have to be passed on to clients or, sooner or afterwards, I go out with business. Econ 101, right? Well, unfortunately, it seems that those who inhabit the fairy land called "Washington D. C. " never took Econ 101.
The more taxes Really easy to implement pay per employee, the fewer employees I'm visiting hire. Extending unemployment insurance coverage will, sooner or in the future, result in higher and higher rates. Someone has to pay for these extensions, and the present climate is not company friendly. So, I will hesitate to use more people because I do not know how far my employer taxes is going to be raised per employee. Many other business owners feel the same. Thus, the unemployment duty extensions place a evening chill on hiring.
The extensions are damaging workers, too... especially the lower level workers. Many of the things they are unemployed from are points that are vanishing. For case, if you're an putting your unit together line worker, it is much more likely that your job is going to be done by a robot rather then coming back. Robots don't get hold of sick, don't need benefits, and don't join that will major American job killer - unions. So, what these folks should do is to use their brains and find something else to accomplish. Many have. Others check their mailboxes for the unemployment checks.
By increasing unemployment benefits, we are preventing your unemployed from finding various ways to earn an income. Some, even many, of these ways would pay more than unemployment benefits. Many people do this every day.
Extending unemployment benefits just creates a class of individuals who are buying the minimum, additionally impairing the economy. People on unemployment don't typically buy cars, microwaves, TELEVISION sets or computers. But those who have found a way to produce money for themselves often do.
Extending unemployment benefits is delaying the necessary change from a 1950's America where everyone seems to be employed by large businesses, to the America with the 21st Century, where small business owners, independent workers and project-oriented jobs are the norm. Reform of health care insurance and other benefit plans to expedite this, if done with any intelligence (care we expect any from either dishonest and corrupt side with the aisle?), are excellent methods for assisting this necessary change.
Increased unionization, waiting for jobs which will never return, and counting on the government are simply foolish and short-sighted notions that must end. The old way of doing business is making a valiant last gasp. President Obama and Congress should just pull the plug and bring America into the 21st Century.
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