Extended Unemployment Benefits Lead to More Unemployment
By Jesse Kline
The number of people filing new unemployment claims dropped sharply last week, according to statistics released today by the Department of Labor. The number of newly unemployed dropped by 21,000 over the previous week to 454,000, the lowest level since early May.
While the economy is certainly not out of the woods yet, these numbers will add fodder to the debate over whether the Senate should approve a bill that would extend unemployment benefits until November 30. Many Democrats have been lining up in support, arguing that unemployment benefits stimulate the economy. And while Republicans have so far been able to postpone the bill's passage, there is probably a good chance that it will be enacted in some form (I suggest never underestimating the government's propensity to engage in costly spending programs).
Yet, a story in yesterday's The Wall Street Journal provides further evidence for what many people have been saying for a long time, that extending unemployment benefits is counterintuitive:
Management Recruiters of Sacramento, Calif., says it recently had a tough time filling six engineering positions at an Oregon manufacturer paying $60,000 a year—and suspects long-term jobless benefits were part of the hitch.
"We called several engineers that were unemployed," says Karl Dinse, a managing partner at the recruiting firm. "They said, nah, you know, if it were paying $80,000 I'd think about it." Some candidates suggested he call them back when their benefits were scheduled to run out, he says.
The perpetual unemployment extensions have gone far beyond a social safety net and now act as an incentive for people to continue to receive government handouts, rather than actively seeking out and accepting job opportunities. Despite a massive stimulus program and previous unemployment extensions that allowed many Americans to continue to receive benefits for up to 99 weeks, the unemployment rate still rests at 9.5 percent.
This, of course, has not stopped politicians from continuing to try to solve the problem by throwing money at it, despite the fact that we clearly can't afford it. "To every American who is looking for work, I promise you we are going to keep on doing everything that we can," President Obama said on Friday. "I will do everything in my power to help our economy create jobs and opportunity," Please Mr. President, please don't try to help anymore.
Read more on unemployment here. And if you're in need of a good laugh, watch House Speaker Nancy Pelosi (D-Calif.) trying to convince reporters that unemployment insurance creates jobs:
show http://www.youtube.com/watch?v=WUAG3Fqz56s&feature=player_embedded
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"Management Recruiters of Sacramento, Calif., says it recently had a tough time filling six engineering positions at an Oregon manufacturer paying $60,000 a year—and suspects long-term jobless benefits were part of the hitch.
"We called several engineers that were unemployed," says Karl Dinse, a managing partner at the recruiting firm. "They said, nah, you know, if it were paying $80,000 I'd think about it." Some candidates suggested he call them back when their benefits were scheduled to run out, he says."
$60K seems low for an engineering job requiring any experience. I'm surprised they don't just hire 3 people at $80K and work them double like so many others are doing. If most anyone normally made $60k and was offered a comparable job, they would jump at it, compared to what they get for unemployment.
So the authors entire argument that extending unemployment is based on an anecdotal tale about "several engineers" that a company called?
That makes no sense what so ever... even assuming that the engineers were unemployed it does not show that they were on extended unemployment. Further such highly trained individuals are in the minority. Extended unemployment helps those at the bottom rungs of society stay afloat (roof over their heads and food in their stomachs), while engineers can likely float off their savings for a while... and afford to be picky about their potential employers.
Unions have become the dominant political influence in California. At the mere hint of any threat to their power structure, the union-financed political machine fires up and intimidates all opposition. The hubris of the unions is such that during a legislative budget committee hearing last summer, one union leader threatened, “We helped get you into office and we’ve got a good memory.”
The CTA’s spending is especially noteworthy when one considers the issues it spends its members’ dues on. Most of the CTA’s 325,000 members probably assume that their dues are used only on education -related matters. But the CTA has branched out into all sorts of political battles beyond education funding.
Although it would seem logical that a teachers union would only focus on education issues, a look at the CTA web site reveals the true goal of this progressive union. According to the CTA mission statement, the union exists to “protect and promote the well-being of its members; to improve the conditions of teaching and learning; to advance the cause of free, universal, and quality public education.” That sounds like a perfectly ordinary goal for a teachers union.
But the mission statement goes on to explain that the union also exists to “ensure that the human dignity and civil rights of all children and youth are protected; and to secure a more just, equitable, and democratic society .” Ensuring “human dignity and civil rights,” as well as a “more just, equitable and democratic society” is far beyond the scope of simply lobbying for teachers’ salaries or more school supplies.
Since 2000, the CTA has spent over $38 million on lobbying the state legislature. A look at the legislation the CTA is lobbying in the current legislative session shows a focus on more than school-related matters.
The CTA is actively supporting Senate Joint Resolution 9, legislation calling upon Congress and the President to repeal the “discriminatory” Don’t Ask Don’t Tell military policy. It also lobbied to pass Senate Bill 572, which declares May 22 Harvey Milk Day in California, in honor of the homosexual activist from San Francisco.
Apparently universal healthcare has become a priority for the teachers union as it supported Senate Bill 1, legislation that would extend Medi-Cal coverage to illegal immigrants’ children. And the CTA isn’t just supporting, but is co-sponsoring Senate Bill 810, which would implement a single-payer government -run healthcare system in California. The CTA lobbied against a Republican-sponsored healthcare reform measure that would have provided greater competition in health insurance by allowing out-of-state carriers to sell plans in California
Even more telling than the legislation it supports, is the legislation the CTA opposes, including Senate Bill 370, which would have prevented voter fraud through voter identification requirements.
The CTA has also invested a great deal of time and money into the marriage issue. It supports Assembly Joint Resolution 19, calling on Congress and the President to repeal the “discriminatory” Defense of Marriage Act . It also lobbied on behalf of House Resolution 5 and Senate Resolution 7, which both expressed the legislature’s belief that Proposition 8 was an “improper” revision to the state constitution . In 2008, the CTA was among the biggest donors to the No on Proposition 8 campaign, pouring more than $1 million into the effort.
And if there were any doubt about the political party with whom the CTA most identifies, their $6.5 million dollar donation—the largest donation to any political party from the special interest groups—clearly signifies the union’s commitment to the Democrat Party.
Pay check protection is crucial to transforming California and diminishing the influence of unions. Union members who don’t agree with the aggressive social agenda of their unions are forced to pay dues spent on political campaigning that may violate their beliefs and standards. In the meantime, the CTA will continue to flood Sacramento with its money and influence—at the expense of those they supposedly represent.
The legislator(s) who wrote this have, by definition, no concept of what the "free market" is. Employers do not "distort" the market. They react to the natural forces at work in the market. So do landlords who write commercial leases. The idea that these capitalists don't know how much parking spaces cost them and need an artificial penalty system designed by collectivist nitwits in Sacramento is arrogant and stupid. It is so arrogant and stupid that it's impossible to tell whether the arrogance causes the stupidity or vice-versa.
California is living proof that there really is no end to the harm liberals will do to any economy they get their hands on. As several other posters have already pointed out, people are fleeing California by the hundreds of thousands because the state gov't has made it impossible to prosper there. So naturally the 'solutions' proposed by the state are to invent even more of the same onerous regulations that are already destroying that prosperity.
In another 2 years there won't be anyone left in California except spoiled movie stars and the homeless . Come to think of it, the "stars" won't be there either, in fact the movie studios are leaving now, it's to expensive. Of course, they won't broadcast that to the smelly and worshiping masses.
amazing diversity and lifestyle. The beach trumps all else.
Most jobs have many more people applying that ever before. I say extend. With layoffs here in California people are now losing their houses because of our Governor's latest missive to cut every state employee to minimum wage until a budget is signed. And who's fault is that? They are not even trying to get a budget at this time. I say cut the legislators to no pay until the budget is signed. People who are unemployed need extra money until our nation turns things around even if that is possible anymore. I love how people point to the one in a million stories to prove some non existent point.
Your post sounds oddly famaliar, hmm, let me search my memory...
Oh, here it is:
"From each according to his ability, to each according to his need."
Karl Marx, 1875
Funny how really bad ideas just keep coming around...
The_Pilgrim
in these times. I know too many out of work professionals not even counting all those I know that are rather unskilled but have worked their whole life. What about the 3800 mortgage brokers that today are being laid off from Wells Fargo? What do they do with their talent? Any suggestions when there are so many financial people and brokers and bankers? Try real life.
I've been unemployed three times in the past year and a half, since I was laid off from a Fortune 500 company in November of '08. Just before the holidays .
I've took another job at 60% of the pay , and was laid off there. I'm currently on my second of two "temporary" jobs .
Sorry, but I'm living it right now.
So, are you unemployed now, or are you just one of the "brilliant" liberals who insist they can solve everyone else's problems?
The_Pilgrim
liberal!!!!!!!!!!! And proud of it.