Thursday, January 2, 2014

Why Extending Unemployment Benefits is a BAD idea

Historical unemployment benefit
Unemployment insurance dates back to 1935 and in normal times is geared to provide six months of benefits. At the height of the recession, benefits went beyond one year. Now, congress, and democrats in particular, want to extend beyond the normal six months again.

So what is the problem? 
People are getting use to it. Once you give people something they expect it, and taking it away is viewed by many as harsh and uncaring. We are creating people that are expecting more and more and more from the government. Guess what, the government does not have money, we give them our money in the form of taxes. So it is not the government running up the bill, it is us. Look in the mirror. You and your kids are funding all of this.

Won't unemployment benefits stimulate the economy?
I actually heard that statement on the news yesterday, unbelievable. "Extend benefits they said", "the money will bet spent in local communities and it will stimulate the economy". In the short term maybe. But with that rational we should double the benefit, or not stop there and triple it, if we REALLY want to stimulate the economy, right? Wrong. Someone is paying for it and sooner or later these unpaid bills will start to hurt.

Hardship? I did not have to work or hustle for any job, please don't make me
On the news the other night I actually heard someone complain that if unemployment checks did not get extended they would have to go back to work at a lowering paying job that they did not like and it would be difficult to continue their education at the same time. I am sorry (not really). Life is difficult. Sometimes we have to work at a job (or 2 or 3) that we don't love and have to go to school nights, evenings, or weekends to better ourselves. 

It is cycle, the more we give the more that it expected
We can't keep going on like this and hope to be a nation that leads the world. Take away the motivation to hustle, innovate, work hard, and lift yourself, and we are more likely to become lazy, waiting for the government to provide. 

Being uncomfortable is a motivating force. It is not cruel.
You might need to downsize, move in with parents or relatives (oh no, that would be awful). You might have to suffer and work long hours and not watch one minute of TV or cancel cable, oh no, not that. Get over it and get busy. Giving you stuff just takes away the motivation for you to rise above. Giving you stuff is what is REALLY cruel.

That's my Greg Sense.

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