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Topic:
CBO says jobless benefits encourage joblessness
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Yukishiro1
Posts: 3,243
Registered: 2002-9-20 23:52:57
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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Yeah I can't really figure that one out either. Except for companies that hire temporary workers I can't see how a 1-2 year 1-2% cut in the cost of wages is going to get them to hire more people.
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theredkay1
Posts: 611
Registered: 2008-5-16 10:37:09
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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Abaddon_Ambrosius posted:
I agree. So do a lot of others. That's why so many just ignore the politicized "unemployment rate" figure.
If you're not talking the U6 unemployed-and-underemployed number, you're not even close to touching the topic with any honesty.
people gripe about this without ever really making a good point. like here you are saying there is dishonesty.
U6 unemployment is always higher than the official unemployment rate. There is no deception or dishonesty going on. They are designed to measure different things.
Its like in a discussion about how tall a building is you get upset that someone is using feet from the ground instead of feet above sea level and accuse them of trying to trick everyone else. Its a statistic, it cant lie. 8.3% U-3 unemployment is too high. 15.1% U-6 is too high. U-3 has dropped 0.8 points in the last 12 months, thats good. U-6 has dropped 1.0 points in the last 12 months, thats good too. Neither stat pretends to be anything other than what it is.
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Abaddon_Ambrosius
Title: Retired Theurgist TL
Posts: 1,674
Registered: 2001-12-21 09:51:39
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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The problem is the unemployment rate is not the problem, but it has been re-jiggered to look less devastating about 20 years ago AND THEN intentionally used by politicians as "the stat", to look less scary.
It's like saying "the stat" to look at when a boat is sinking is the infinitessimal % of water being drained out of the lake... rather than the much more important % of water the boat can take on before it f*cking sinks.
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Testerion
Posts: 549
Registered: 2001-12-28 03:07:47
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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USA already has almost 25% lower minimum wages than rest of the western world...Damn right Corporates are scared of any change that may introduce decent quality of life to all americans..where would be they getting their 5-7$/hour sweatshop-slaves after that?
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Groucho48
Posts: 821
Registered: 2003-10-22 03:00:14
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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In times of a low unemployment rate, I would say that unemployment insurance very likely disincentivzes a fair number of folks from looking for jobs as seriously as they should...because they are reasonably sure they will be able to get a job fairly quickly when they do get serious about it.
In times of high unemployment, though, I don't think that would be as much of an issue. When you know that jobs are really hard to get, you tend to have a lot more incentive to look for one.
That's why I think doing things like extending benefits when unemployment is high is reasonable. When unemployment is 4%, leave it at 26 weeks. When it hits 6%, make it 52 weeks. When it hits 8%, keep it going as long as necessary.
Same with using U3 vs. U6 figures. When unemployment is low, U3 probably gives the best picture of actual unemployment. When it is high, U6 is probably more useful.
I tried reading the CBO report, but, there was an awful lot of filler and not much hard stuff, and my fingers were getting tired of scrolling.
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ZigmundZag
Title: Grammar Nazi
Posts: 1,211
Registered: 2002-3-25 23:03:00
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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Groucho48 posted:
In times of a low unemployment rate, I would say that unemployment insurance very likely disincentivzes a fair number of folks from looking for jobs as seriously as they should...because they are reasonably sure they will be able to get a job fairly quickly when they do get serious about it.
In times of high unemployment, though, I don't think that would be as much of an issue. When you know that jobs are really hard to get, you tend to have a lot more incentive to look for one.
Or they'll just tell themselves that they probably couldn't find a job if they really tried, anyhow. People will rationalize taking free money any way they can.
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Groucho48
Posts: 821
Registered: 2003-10-22 03:00:14
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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ZigmundZag posted:
Groucho48 posted:
In times of a low unemployment rate, I would say that unemployment insurance very likely disincentivzes a fair number of folks from looking for jobs as seriously as they should...because they are reasonably sure they will be able to get a job fairly quickly when they do get serious about it.
In times of high unemployment, though, I don't think that would be as much of an issue. When you know that jobs are really hard to get, you tend to have a lot more incentive to look for one.
Or they'll just tell themselves that they probably couldn't find a job if they really tried, anyhow. People will rationalize taking free money any way they can.
Some will, most won't. Most of the folks thrown onto unemployment due to the collapse are middle aged home owners with families who have 10-15-20-30 years of work in. Most of them desperately want to be working but, they have to find a job that doesn't hurt their family too much.
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Rosaria
Title: They call me Mellow Yellow, quite rightly.
Posts: 477
Registered: 2003-8-22 10:07:30
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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I would like to see hard data that proves that jobless benefits encourages joblessness. I probably have a lower opinion of UI than most of you but even I don't believe that. Germany gave the UI benefits and other incentives directly to the employers so that workers stayed on their jobs rather than being laid off. There were benefits to people staying at home because some jobs were completely lost. Germany did so because they believed the loss of a skill set has significant impact on a region's ability to recover from a recession.
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ZigmundZag
Title: Grammar Nazi
Posts: 1,211
Registered: 2002-3-25 23:03:00
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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I don't know that it encourages joblessness, but it certainly makes being a discouraged worker a lot more comfortable. At the end of the day, I think there's still far more demand for jobs than supply so I don't really see it having an impact. I've often wondered why more jobless benefits don't go towards self-employment options such as small business planning and loans, though.
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Date Posted:
1/1/00 12:00am
Subject:
CBO says jobless benefits encourage joblessness
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Lyken-P posted:
Remnant_OBrien posted:
Quote:
“In order to remain eligible for unemployment benefits, more people without jobs have continued looking for work — though, in some cases, less intensely and more selectively than they otherwise would have — after the normal 26-week benefit period,†CBO said. “In that way, the extensions of benefits have kept more jobless individuals in the labor force, thereby pushing up the unemployment rate by roughly one-quarter of one percentage point.â€
Correct me if i'm wrong but doesn't this say that unemployment benefits actually keep people from giving up on job searches?
Its not that unemployment benefits encourages joblessness. It's that unemployment benefits keep more people active in the category that counts in our current unemployment measures... Otherwise more people would fall out of that category, reducing the overall size of the counted labor pool and thus increasing unemployment (under this measure) but not others.
Bolded the phrasing you are glossing over.
Speaking of.
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