Unemployment makes unemployment rates rise

This article from the Seattle Times notes that many of the unemployed may never recover their jobs, and may never get new ones either. And that is why Congress is set to debate whether or not to extend unemployment benefits.

The awkward thing about extending unemployment benefits is you make more unemployed. This happens because those who are already unemployed seek to stay on unemployment, because it beats working.

Now some say this is crazy talk, considering unemployment benefits creates a "disincentive" to get off unemployment, noted SenatorSen. Jon Kyl of Arizona via this article. But who's to take the word of one senator.

Kyle notes, ""I'm sure most of them would like work and probably have tried to seek it, but you can't argue that it's a job enhancer. If anything, as I said, it's a disincentive. And the same thing with the COBRA extension and the other extensions here."

Of course Sen. Max Baucus (D-Mont.) argues the opposite, that unemployment adds jobs because the money is spent to bolster the economy. Yet, IMO, that argument fails too. The government alone cannot stimulate an economy. It has never in the history of the U.S. ever happened.

So is it a good idea to extend unemployment or not? Sure we don't want people hurt, yet sometimes the best incentive to get them back on their feet is to force them. Sure it sounds harsh, but the best way to help people is to let them fail.

It may not be fun, but many of these people could easily get a temporary job at McDonald's, but because they are on unemployment, they don't seek these jobs. They become complacent receiving their check. They become dependent on Uncle Sam. There is no incentive to seek work.

Thus, the unemployment rates rise. Although bloggers like this will make you think that people like me, and the GOP, who don't want increase unemployemnt benefits could care less about the unemployed. However, that is the opposite of the truth.

There are no proposals by anyone to get rid of unemployment, only to not make it an eternal fix. Unemployment for a while is fine, but to make it a crutch is a bad idea. Besides, we cannot afford such luxuries (if you want to call it that).

If we had tons of money, then it would be different. It's unfortunate many Americans don't have any money and are out of jobs. Because of tax and spend politics in Washington, Washington has no money either, and should not keep spending like it does.

Are unemployment rates accurate?

According to the Sunday, November 15, 2009, edition of the Detroit Free Press (Freep.com), the following are the ten states with the top unemployment rates:

• Michigan 15.3%
• California 12.2%
• Florida 11.0%
• Illlinois 10.6%
• North Carolina 10.9%
• Georgia 10.1%
• New Jersey 9.8%
• Washington 9.3%
• New York 8.9%
• Texas 8.2%

The national unemployment rate is greater than 10%.

Of course we have to realize that the real unemployment rate may be greater than or less than this. Why do I say this? Well, you have to consider that there are many Americans -- I know of at least three -- work only in the summer, get laid off, and collect unemployment benefits for a living each winter.

Your certainly not going to get rich living this way, but if that's the kind of life you are comfortable living, it's certainly available. The government set up this program to help people who are laid off, although unemployment gives many people an excuse not to work.

Personally I think unemployment is a good thing, although I think it needs to be refined to make sure people aren't abusing it. I think there should be limits to how many times it can be utilized. I don't think people should be able to live off it year after year.

Then again, there are also many Americans who want to work but are no longer listed as unemployed. These are people who have been unemployed for so long they are no longer listed as unemployed, and those who have been looking for jobs so long they now have part time or temporary jobs.

So, adjusted for this, the real unemployment rate in the U.S. is actually listed at 17%. However, considering what I wrote above about people living off unemployment, I would have to "surmise" that the unemployment rates stated by the Federal government -- the rates listed above -- are probably rather accurate.
What do you think?