Extending benefits, a key to the tax deal, may keep some at home, but it will also boost growth
For Democrats, the timing was awkward. On Dec. 7, the morning after President Barack Obama announced a tax-and-spending deal with congressional Republicans that will extend unemployment benefits for another 13 months, the Bureau of Labor Statistics announced that there were 3.4 million job openings as of the end of October.
In other words, millions of jobs are going unfilled at the same time that millions of out-of-work Americans are getting checks for being unemployed. That's red meat for free-market conservatives who dislike government meddling in the private sector. Under the deal's terms, wrote Erick Erickson, editor of the influential RedState blog, "we will also continue subsidizing unemployment—yes you read that right. At some point it becomes welfare, not unemployment compensation."
Obama is making no apologies for a provision he says will be a lifeline to the families of the unemployed as well as a stimulus to the economy. "There are people right now who, when the unemployment insurance runs out, will not be able to pay the bills," he said at a Dec. 7 news conference.
Liberal Democrats were angry that the budget deal preserves the Bush tax cuts for the highest-income families and pegs the estate tax at a lower-than-scheduled 35 percent, with a full exemption for estates worth less than $5 million. To fire up growth, the agreement also allows businesses to write off 100 percent of their capital spending as a business expense next year. Capital gains and dividends taxes stay at 15 percent.
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So first they create global economy and international free trade agreements to destroy our industrial jobs, and now they want to convince us that our neighbors are "lazy" because they won't work as slaves picking fruit in apple orchards for $5 an hour. This is also how they justify the existence of millions of illegal aliens in our country who's purpose it is to do the work that "lazy Americans" refuse to do.
ReplyDeleteRight. My neighbor Fred is too lazy to work up at the Wendy's for $7 an hour because he claims he can't pay his rent with a take home income of $200 a week. Lazy Fred.
Add to the 3.4 million job openings all the jobs the thousands of illegals are risking their life for every day to get a better job, there is absolutely no sense in extending benefits. Without the jobless benefits there would be fewer job openings and fewer illegals. Maybe those jobs won't keep people in the style they'd like, they would keep them in the style for which they're qualified.
ReplyDeleteMany employers can't find workers with the correct skills to fill these positions. A sizable chunk of those who have lost their jobs was caused by those same positions becoming obsolete.
ReplyDeleteThe unemployed should only receive benefits if they are in training/school full time.
I just read about Germany providing payments directly to employers to keep employees on their payroll albeit at a reduced salary. Comes out to be cheaper than providing benefits for the gov. and keeps folks going to work.
ReplyDelete2:33 PM
ReplyDeleteAnd you're going to pay for the training/school right?
To answer your question, yes.
ReplyDeleteThe more unemployment claims your company has, the higher rate your business pays in unemployment taxes.
Now do you get it? It's in the best interest of THE GOVERNMENT to keep extending the benefits!