The U.S. Senate voted on Saturday to extend a payroll tax cut for two months in legislation.
The measure also would extend long-term unemployment benefits for another two months.
Senate Agrees to Extension of Jobless Benefits, Tax Cut.
Do you think that the Unemployment benefits should be extended?
I say no to that. The government extends the Unemployment benefits thinking that this will pour more money in the hands of people who will spend more which in turn will stimulate the economy.
But does this really happen.
Yes, there are lots of benefits of having the unemployment benefit. It keeps people going without being broken. Helps them to avoid being broken etc etc...
But if we see the flip side of it, there are countless.
There was a study conducted on the people who have been receiving the unemployment benefits.
It was found that significant percentage of people who have been receiving the unemployment benefits don't want to go back to the work force. They like it the way it is going right now. Don't do anything and government will pay all your bills. Many of them may be vacationing on the beach most of the time.
They wont turn up when called for an eligible opportunity because that will result in them working to get the same or similar amount they are getting without doing any work.
There are 3 Mn open opportunities in the country with 12 Mn unemployed. Why can't people spend time to get trained so that they can be eligible for the 3 Mn opportunity.
This will be a big problem when the unemployment benefits will stop. Those people will really have nothing to spend and will take economy to the stage that they are afraid of. To make the situations worse, the people will be incompetent to join the workforce.
The second point is that the Unemployment benefit is substantial. It ranges between $1500- $2000 for most of the people. make it somewhere around 20-25k per year. This is 50% of the mean/ median income in US. Also it is significantly more than the person who is working at minimum wage earns.
What does this mean? If I am getting the unemployment benefit, I have no financial motivation to apply for an opening in walmart,target, JC Penny or McDonalds. I may be making more money from my unemployment benefit that earning in those jobs. I do see lots of stores in the neighbourhood who have been carrying the board of "Help wanted" for weeks.
The third problem is that the government is trying to socialize the system by collecting the money from the people who are working their asses off and paying to those who are not. I am not against the unemployment benefit but against providing it for years. If I am making 25-35k in my current job, I am not very motivated in delivering my best. Even if I lose my job, I will be paid 60-70% of my current earnings in the form of unemployment benefits. I can go for a vacation and still receive the check. Waw. the idea just excites me.
The other problem is that the government is anyhow badly in debt. The government should understand the basic concept of " A dollar saved is a dollar earned" and in fact in this case it is more because the government has to pay interest on the borrowed money so the 8th wonder of the world (I consider "The power of compounding as the eighth wonder of the world") works great. We get more in debt and we borrow more and pay with the borrowed money. This will be the biggest ponzi scheme in the world.
So, the government should think before extending the unemployment benefits further. It is will have negative impact on the society in the long term.
The measure also would extend long-term unemployment benefits for another two months.
Senate Agrees to Extension of Jobless Benefits, Tax Cut.
Do you think that the Unemployment benefits should be extended?
I say no to that. The government extends the Unemployment benefits thinking that this will pour more money in the hands of people who will spend more which in turn will stimulate the economy.
But does this really happen.
Yes, there are lots of benefits of having the unemployment benefit. It keeps people going without being broken. Helps them to avoid being broken etc etc...
But if we see the flip side of it, there are countless.
There was a study conducted on the people who have been receiving the unemployment benefits.
It was found that significant percentage of people who have been receiving the unemployment benefits don't want to go back to the work force. They like it the way it is going right now. Don't do anything and government will pay all your bills. Many of them may be vacationing on the beach most of the time.
They wont turn up when called for an eligible opportunity because that will result in them working to get the same or similar amount they are getting without doing any work.
There are 3 Mn open opportunities in the country with 12 Mn unemployed. Why can't people spend time to get trained so that they can be eligible for the 3 Mn opportunity.
This will be a big problem when the unemployment benefits will stop. Those people will really have nothing to spend and will take economy to the stage that they are afraid of. To make the situations worse, the people will be incompetent to join the workforce.
The second point is that the Unemployment benefit is substantial. It ranges between $1500- $2000 for most of the people. make it somewhere around 20-25k per year. This is 50% of the mean/ median income in US. Also it is significantly more than the person who is working at minimum wage earns.
What does this mean? If I am getting the unemployment benefit, I have no financial motivation to apply for an opening in walmart,target, JC Penny or McDonalds. I may be making more money from my unemployment benefit that earning in those jobs. I do see lots of stores in the neighbourhood who have been carrying the board of "Help wanted" for weeks.
The third problem is that the government is trying to socialize the system by collecting the money from the people who are working their asses off and paying to those who are not. I am not against the unemployment benefit but against providing it for years. If I am making 25-35k in my current job, I am not very motivated in delivering my best. Even if I lose my job, I will be paid 60-70% of my current earnings in the form of unemployment benefits. I can go for a vacation and still receive the check. Waw. the idea just excites me.
The other problem is that the government is anyhow badly in debt. The government should understand the basic concept of " A dollar saved is a dollar earned" and in fact in this case it is more because the government has to pay interest on the borrowed money so the 8th wonder of the world (I consider "The power of compounding as the eighth wonder of the world") works great. We get more in debt and we borrow more and pay with the borrowed money. This will be the biggest ponzi scheme in the world.
So, the government should think before extending the unemployment benefits further. It is will have negative impact on the society in the long term.
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