Wednesday, January 1, 2014

Extending Unemployment Insurance - A Bad Idea

Even though Congress just enacted a budget deal that raised discretionary spending by more than $60 Billion in the next two years, while cutting military pensions, which was shameful, now there is a push to extend Unemployment Benefits again beyond the current 99 weeks.  Aside from the $25 Billion a year that this would cost, chump change in Washington DC, it is a big mistake.  Normally, Unemployment Insurance last 26 weeks.  As a result of the Obama Economy, it has been extended several times to 99 weeks and as a result unemployment has not come down as rapidly as would otherwise have been the case. 

There are many studies that show that extending Unemployment Insurance actually causes the unemployed not to take jobs.   The fact is that someone could work at McDonald's and earn the average $300 a week this is paid in Unemployment Insurance.   And, though the work may not be wonderful, it is better than sitting home doing nothing and or working on the side, under the table, while collecting benefits.   Unemployment Insurance is supposed to be a bridge to a new job, not a permanent  Welfare benefit that rewards people for not working. 

The reality is that someone who no longer qualifies for Unemployment Insurance and has no job can probably get Welfare and Food Stamps anyway as a result of Obama's elimination of the stricter requirements that were part of Clinton's Welfare Reform.  So why extend Unemployment Insurance.  Going on the dole, with free cell phones, is simple in ObamaLand.  In any case, those in Congress pushing for this extension need to find the money to pay for it.  Don't count on it. 

God knows that there is so much fraud, waste, abuse and redundancy in federal government programs and spending that if honesty and common sense prevailed in Washington DC, which is not the case, it would be easy to make cuts to fund this and those military pensions that were cut.  It won't happen.   Socialists and RINO's who vote to extend Unemployment Insurance will just borrow more money to pay for it.  Sadly, it is what it is.  And, it is the reason we are headed toward the economic collapse of the United States.   Socialists and RINO's in government are not capable of getting our fiscal house in order.  The recent Budget Deal made that fact obvious if there ever was any doubt. 

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