Counterpunch #19: Do Unemployment benefits Increase Unemployment?

Welcome to Counterpunch! Episode #19. Today's topic: Does extending unemployment benefits keep the jobless from looking for work?

I argue that this is a proven fact, illustrated in several studies showing how many people don't find a job until their benefits expire or are about to expire. Sherry Walker, of Left In Alabama, argues that extending the benefits is the moral thing to do... and it's good for the economy, too.

I would like to say that, though is has been fun to produce these weekly episodes, the effort involved has proven to be far too time consuming. Because of that reason, coupled with the low viewing rate on YouTube, both Sherry and I agree that continuing with the Counterpunch feature isn't the wisest course of action. I hope you've enjoyed Counterpunch, but as things stand right now, this episode will be our last.

All the Counterpunch! episodes are now online as videos on YouTube at http://www.youtube.com/user/PoliticsAL.





If the player doesn't work, try this link:
http://www.youtube.com/watch?v=r7gRFm3Brwk


Here is transcript of my position:


We can argue this on an ideological basis if you like, but there’s no arguing that study after study has shown that unemployment benefits encourage more unemployment.

It works quite simply. A man without a job will find any way possible to earn a living. A jobless man with unemployment benefits has a little cushion, and can afford to wait and search not just for a job, but for the RIGHT job. Studies show that a high percentage of those on unemployment don’t find a job until their benefits either HAVE run out or are ABOUT TO run out.

By extending unemployment benefits indefinitely, we’re basically subsidizing a high unemployment rate.

Nancy Pelosi came out with a whopper the other day, claiming that unemployment benefits were the best form of stimulus and the best way of growing employment. I don’t quite understand how unemployment caused by employers unwilling to hire can result in more employers willing to hire… but then, I’m not a liberal, I’m a libertarian.

If you want to keep the unemployment rate high, then keep extending the benefits. But be careful, let those benefits become an entitlement, and THOSE we NEVER get rid of.

For Politics Alabama, I am Matthew Givens