Posted on 12/27/2022 6:10:54 AM PST by RandFan
Amid an ongoing labor crisis, with businesses across the country continually struggling to fill open worker slots, two economists say part of the problem may stem from roughly a quarter of all U.S. states paying citizens sky-high unemployment benefits that sharply disincentivize working.
The report, published this month by the Committee to Unleash Prosperity, points to a rash of state-level policies that offer generous payouts for workers who are currently unemployed.
The writers — University of Chicago economics Professor Casey Mulligan and Heritage Foundation economics research fellow EJ Antoni — argue in the paper that in 14 states, "unemployment benefits and [Affordable Care Act] subsidies are the equivalent to a head of household earning $80,000 in salary, plus health insurance benefits."
In three states — Washington, Massachusetts and New Jersey — the researchers found that unemployment benefits could top $100,000, with Washington offering $122,000 in payouts.
Speaking to Just the News, Mulligan noted that safety net and welfare programs functioned well in years past without disincentivizing real employment.
"For MANY years up to and including 2007, we had an extensive safety net without mass suffering etc. while encouraging work better than we do today," he argued. "So a simple recommendation would be to roll back the federal programs to 2007, before the Obama and Biden administrations got a hold of them."
(Excerpt) Read more at justthenews.com ...
In three states — Washington, Massachusetts and New Jersey — the researchers found that unemployment benefits could top $100,000, with Washington offering $122,000 in payouts.
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Money (demand) without goods or services being produced (supply) = inflation.
In short, voting for a pay raise from the treasury....works.
Imagine having a small business and competing with the government for “employees”.
They used to call it welfare.
I’d rather work a 12 hr shift. Handouts are handcuffs.
And that is what has been going on. Too much government funding of non working people.
Hacks that want to get elected by promising a free ride on the gravy train and it works 99% of the time.
In short, voting for a pay raise from the treasury....works.
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...at least for awhile.
This report is bs.
I collected unemployment a few years ago. It was the maximum amount 2,000/month for 6 months.
That is hardly 80K to 120K and it was for 6 months.
The covid extensions are long over.
Unemployment used to represent about 40% of your pay.
Incentive to GET BACK TO WORK.
Also-—seekers of benefits MUST report IN PERSON weekly to offices & hand in paperwork stating where they applied during prior week.
Many years ago, I was out of work for a short time. I remember standing in line with an older man-—unkempt—smelled like alcohol-— everybody talks in line—
Some one asked him what kind of job he was looking for—
He said ARCHAEOLOGY-—He said they will NEVER Find him a job...
>>man-—unkempt—smelled like alcohol—<<
Not enough in benefits to fill a bong?
This is about UNEMPLOYMENT - which has been deducted from employees’ checks. I’d imagine states with the higher salaries will have the highest unemployment payouts - but they are hardly “free” or “welfare”. In fact, states make you fight tooth and nail to collect unemployment.
These payouts are the result of the layoffs due to the Detroitification of those states - unemployment isn’t challenged for layoffs. It is not a good sign for those places, but a terrible omen.
We have been discussing the “tipping point” for decades, when those who are extracting money from the government outnumber those who put money into it.
They can then vote those into office who will take money out and give it to them.
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