Saturday, November 12, 2011

Extended Unemployment Benefit Negatives

Effects of extended unemployment benefits have been studied; I have referred to the statistics before.

Left-leaning politicians, seeking votes from the unemployed, use such benefits as a ploy. Those who want jobs are thereby being hoodwinked, and go along with the extended benefit band-aid.

Statistics show the effects of the psychology involved. The program invites incentives not to work, Because extending benefits and re-extending them creates what is called a “reservation” wage. People who ordinarily get relatively lower-scale income tend not to look for work until the unemployment wage runs out.

Moreover, the funds used by government generally come from additional taxes on the employed and industry, or from additional budget deficits.( See the Earl J Weinreb NewsHole® comments.)

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