Can I Start the Job When My Unemployment Benefits Expire?


Yep, Obama’s economy is here. Employers are having difficulty hiring because people would rather stay on unemployment than work.

See this article. It’s stark evidence that the unemployment rate goes down when unemployment benefits run out.

Chris Pompeo, vice president of operations for Landscape America in Warren, said he has had about a dozen offers declined. One applicant, who had eight weeks to go until his state unemployment benefits ran out, asked for a deferred start date. “It’s like, you’ve got to be kidding me,” Pompeo said. “It’s frustrating. It’s honestly something I’ve never seen before.”

There are a lot of things we’ll start seeing that we’ve never seen before, now that Obama is here. And little of it’s good.

Obama and the leftist majorities in Congress keep passing extensions of unemployment benefits. Will they do so indefinitely? We seem to be getting the Euro-sclerosis-like structural unemployment where the unemployment rate is so high because government benefits are so lavish. (Note: the word “generous” is normally used there, but when you’re lavish with other people’s money, that’s not generosity. It’s only generous when you give away your own money.)

As in Europe, people choose to be a ward of the state rather than work.

For more on this, see the Nov. 9, 2009 entry below: “More Unemployment Benefits = More Unemployment”.

More Unemployment Benefits = More Unemployment

One of the biggest differences between liberals and conservatives is that the latter have a better understanding of human behavior than the former. Take unemployment benefits. The longer they’re in place, the longer people go without jobs.

Many if not most recipients would rather keep collecting that free money rather than accept a job that pays lower than their previous job, or that has a tough commute, or that they wouldn’t particularly enjoy compared with the laid-back life at home.

Don’t believe it? Then look to none other than Larry Summers, the director of the National Economic Council under President Obama, who co-authored a paper in 1995 titled “Unemployment insurance lengthens unemployment spells.” He’s an anomaly among Democrats – someone who actually does understand that aspect of human behavior.

President Obama’s apparent lack of understanding thereof is getting him into trouble politically. As explained by columnist and economist Alan Reynolds, it’s no coincidence that the lengthening of unemployment benefits to an unprecedented 79 weeks in more than half the states is resulting in a 10.2 unemployment rate.

To be sure, it’s OK to have unemployment benefits for a certain amount of time to help people get back on their feet. But when they go on for too long, human nature dictates that persistent high unemployment is the end result.