Below is a well written article that originally appeared on Townhall.com regarding the fallacy of extending unemployment benefits. This is one of the most straightforward articles I have seen in quite some time and wanted to share it with my readers. I agree with the authors premise that extending unemployment benefits will do nothing and we will be in this boondoggle in a few months when the extension runs out. We must get people off of unemployment benefits and into the workforce by reducing regulations that are burdensome and by ending this extension of unemployment benefits. We must go back to a maximum of 28 weeks which was in place for years and working just fine. In OH alone as listed on Monster.com there are 124K jobs openings – the jobs are there but what incentive do people have to work when they are getting “free”money?
Extending Unemployment Benefits Won’t Solve Unemployment
Congress is currently debating extending long-term unemployment benefits for another three months. Most mainstream media sources would have you believe that members of Congress who support the extension are compassionate souls, while the ones opposed don’t care about unemployed people. This shortsighted narrative ignores the facts and puts politics over real solutions to the jobs situation in the United States.
At the height of the financial crisis in 2008, Congress set up a temporary federal unemployment compensation program. Most state unemployment benefits last about 28 weeks. The intention of the federal program was to take over after state benefits ran out. The program has been running for five years, and some people have been able to collect unemployment benefits for up to 99 weeks.
Late economist Milton Friedman said it best, “Nothing is so permanent as a temporary government program.”
Senate Majority Leader Harry Reid is determined to renew the program, which expired on December 28, 2013. Meanwhile, other members of Congress are calling for the $6.4 billion benefits extension to be offset by spending cuts elsewhere in the federal budget. This is a more fiscally responsible option that will ensure the cost of extending the program will not add to the federal deficit.
True to form, Senator Reid has refused to compromise.