Sunday, September 11, 2011

End all unemployment insurance payments now!

The government providing extended unemployment benefit payments to individuals is just about the worse thing that can be done to the economy. An economy is all about production. The more we all produce, the more we will all have. The end result of paying people to be idle is to reduce the total production of the economy. And the payments the non producers receive are the excess, tradeable production of producers in society. In a healthy economy, a significant portion of excess production is accumulated and traded for products that enable the producer to upgrade the quality and quantity of what it is they produce. Payments to idle workers take excess production away from the producers and reduces their ability to upgrade and continue their own production.

What to do? Stop paying the jobless extended unemployment benefits. If you want the government to do something, Enable the jobless to produce for each other . In practice, the jobless will get a job. There are minimum wage jobs available in the economy. Earning $400 per week at a minimum wage job is certainly difficult. People need more than that to live. But people can double and triple up in their housing arrangements. They can get by on a low wage job. And being productive, honest workers, once people are working opportunities to earn more and produce to their protential will present themselves.

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