More unemployment benefits and a higher minimum wage? Couldn’t be worse for struggling Americans.
To put it in today’s standard D.C. terms, Democrats sure must hate poor people.
That’s silly, of course. But there’s no doubt that Democrats are preparing to push policies that are likely to hurt struggling low- and middle-income Americans.
Both the Obama administration and the Democratic leadership in Congress have announced that their top priority when Congress returns later this month will be extending unemployment benefits and raising the minimum wage. Both policies are likely to leave more Americans jobless — especially low-income workers with few skills, the very people Democrats claim they want to help most.
Take the extension of unemployment insurance. Labor economists may disagree on the extent to which unemployment benefits increase or extend spells of unemployment, but the fact that they increase the duration of unemployment and/or unemployment levels is not especially controversial. As Martin Feldstein and Daniel Altman have pointed out, “the most obvious and most thoroughly researched effect of the existing UI systems on unemployment is the increase in the duration of the unemployment spells.”
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3 comments:
In my opinion this is the stupidest statement yet.
“the most obvious and most thoroughly researched effect of the existing UI systems on unemployment is the increase in the duration of the unemployment spells"
These extension were implemented with Bush when the economy tanked.
There are longer spells of unemployment because the economy is bad and employers are knocking people down to under 30 hours a week. Businesses are closing and or shipping jobs overseas.
No one on unemployment is making a fortune, and it has catapulted them into poverty. A minimum wage worker is only making $174/week on unemployment.
The implementation of ACA created a scenario to where employers are cutting hours to un-qualify employees to employer sponsored health care plans.
People now have to work multiple jobs to simply make ends meet. Check out the state and university job boards. No benefits.
Middle class wages continue to be stagnant, and inflation, cost of goods continue to rise, as are taxes. And corporations are posting record profits.
The Fed has no choice but to raise minimum wage.
I am a school teacher and I need to work a second job.
I am a school teacher and I need to work a second job.
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