SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : A US National Health Care System?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Alighieri who wrote (17159)4/20/2010 6:04:15 PM
From: TimF   of 42652
 
We don't have 10% unemployment suddenly because a few millions people suddenly realized that they could collect unemployment.

Just about no one speaking on this point is claiming suddenly. Its not "we have high unemployment now because of unemployment benefits", but rather we always have slightly higher unemployment because of such benefits. And that generally everything else being equal, the more generous your benefits are the more unemployment you get.

Countries that have generous unemployment benefits, generous welfare benefits, restrictions on firing people (so employers are more reluctant to hire in the first place), and other such policies have chronically had higher unemployment than the US has had.

Now we fairly "suddenly" have high unemployment too, because of the recession. But the claim is not that the recession or our current high unemployment is caused by the benefits, or the extension of the benefits, but rather that such things will at the make the average long term unemployment rate in our country higher than it would otherwise have been.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext