This Thursday President Obama will address the nation and tell of how the government will tackle our whopping 9.1% unemployment rate… From what I gather, there may be yet another plan to extend benefits in the works…
Rudimentary economic theory teaches that you get what you pay for… In essence, if you pay for unemployment, you get unemployment… Not to suggest that we shouldn’t assist our fellow citizens in need, but I can’t help but wonder (per my observation below) if too large a percentage of recipients aren’t abusing the system.
The problem being, as Milton Friedman pointed out;
“When you spend someone else’s money on someone else (which would be every government program) you have no incentive to economize and no incentive for quality…”
The 9.1
I personally know of exactly 5 individuals who have received unemployment benefits over the past year. Here are their true stories:
1. A woman who’s now permanently housewifing, who refers to her unemployment checks as her Macy’s money…
2. The Giant’s fan my son met at the gym who says “at 2,500/month it’s not worth going back to work.” He brags of watching his premium MLB channels all day long.
3. A young man I play basketball with who works 9 months for the state and takes 3 months unemployment benefit every single year, and “absolutely loves it”…
4. A guy who claims he could get a job in a heartbeat, who, when he worked, outspokenly resented those who exploited the system, yet now confesses to be loving life as one of the 9.1, with no intent whatsoever to get a job till his benefits expire (if ever)…
5. A gentleman who accepted benefits just long enough to get his real estate license, who now works full time…
So then, empirical evidence (my study) suggests 80% of the 9.1 are abusing the system… And that unemployment benefits clearly inspire unemployment…
I suspect (hope) this isn’t the norm, that surely the majority are using their unemployment benefit to tide them over as they diligently look for work, or, like #5, learn a new trade… I just can’t prove it…