Unemployment: How Much Is Hardship and How Much Is Chosen?
Matt Spivey at American Thinker makes some very good points in sync with some observations by your truly:
Mr. Obama and his fellow Dems would like us to believe that the current job market is a barren desert or frozen wasteland, from which there is no escape except by the guiding hand of government.
In my home state of Arizona, one can “earn” up to $240 per week while unemployed. In New York, a recipient can get up to $405 per week, and in California, the rate can be as high as $450 per week. Now let’s put that into a practical comparison. Let’s say the only available job in town is a part-time offer of $10 per hour for 20 hours per week. One could be contributing a valuable service, such as tutoring at a school, cooking in a restaurant, or handling luggage at the airport. Yet, at $200 a week, before taxes, why would anyone take such a job when he or she could earn as much as twice that amount sitting at home in pajamas?
Where’s the motivation to work, to contribute, to move up?
Indeed. Spivey doesn’t even get to other key points about unemployment:
- Cheating is rampant (please don’t tell me it’s not). At any given time, I’ll guarantee you that there are hundreds of thousands who are either on unemployment but only going through the motions of trying to find work while not really doing so — until a few weeks before the bennies run out. The supposedly compassionate blanket extensions of unemployment benefits from 26 to 52 to 78 to who knows how many weeks enable large numbers of slackers to play stallball even longer.
- Another form of cheating is doing contract work while either getting paid in cash or by those who don’t issue 1099’s. For that matters, do the states even try to cross-check the unemployed against W-2s and 1099s? If not, why not, especially since many state systems are underwater?
- Then there are those who go to jobs and work at screwing up and getting fired so they can collect benefits. That’s not as rare as you might think. The mentality is enshrined in this article from earlier this year by a guy (can’t find the link at the moment) who bragged (yes) about he was gaming the system.
- While unemployment benefits can be taxable, they mostly aren’t, and they aren’t subject to Social Security or Medicare taxation. That isn’t to argue that they should be, but I am pointing out that the benefits are mostly tax-free. Yes, health insurance is an issue, but the 18-35 and single set that largely dominates the slacker population usually doesn’t care if they’re uninsured.
- The current economy has many more part-time opportunities than existed 20-30 years ago, or even 10. Those who want to work could usually find it if they want it and still have plenty of time during the rest of a given week to find a job in their chosen profession.
- Oh, and by the way, what if your chosen profession isn’t hiring, or is shrinking, or becoming obsolete? Does that give you an automatic right to a year or so of bennies? I don’t think so.
That isn’t to say that there’s not a lot of suffering going on in certain sectors of the economy, but Spivey’s fundamental point is correct: The unemployment rate is higher than it would be if the system were managed with the goal of ensuring that people find work, or interim part-time work, instead of managed to maximize the number of beneficiaries and the benefits they’re paid.










