Both Against and For Unemployment

In Spain they’re demonstrating against unemployment, presumably private sector unemployment. But from what I gather from the news article on it, these aren’t Tea Party types. Instead they’re big-government types who embrace the welfare state.

Yet it’s the welfare state that’s causing the 21% unemployment rate in Spain, and 42% unemployment rate for those ages 15-24.

People who complain about unemployment are essentially lamenting the fact that there aren’t enough entrepreneurs and business people willing to take the enormous risks and go through the enormous hoops in order to try to hire a worker.

It’s really tough to hire and/or maintain a worker when you don’t know when, or from where, the revenue is going to come in to pay that worker. And you have to come up with a viable idea in the first place – something that people are going to want in exchange for their hard-earned money – in order to generate that revenue. That’s one tough endeavor, and most people don’t have the ability or willingness to do it. Most people rely on a tiny minority of people, called entrepreneurs, to go through those enormous hoops in order to generate the employment.

So if the welfare state is massive, with high taxes and stifling regulations to disincentivize entrepreneurs and business people, then unemployment is going to be high. What the protestors should be protesting is the welfare state.

Their intentions are to reduce unemployment. Their actions exacerbate it. And they don’t realize the irony.

There’s an election in Spain tomorrow. One protestor, who previously supported the Communist-led United Left, says she’s going to change her vote. Away from the far left? No, according to a CNN report. To an even more leftist party, she said.

Actually I didn’t think you could get more leftist than that. But apparently in Spain, you can.


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”.