unemployment compensation: The new welfare?

Suspend the debate a moment and just consider unemployment compensation as it is being paid now, and what it likely will do.
99 weeks is almost two full years. If it is extended another 13 months...we are now at 3 years and running.
Again, suspending the debate over whether it should or should not be extended, where do we go from there?

We are at 9.8%...which in reality is likely around 15%.
What can be expected when the economy returns?
Absolutely in NO way will we see it go back to 4-5% anytime in the near future, doubtful in this new decade.
Companies everywhere, including my own, have found ways to be more efficient and to operate with less of everything - not just people.
So when things return - you think business owners are simply going to announce "hey - let's go back to being innefficient and start buying those supplies we don't really need now that we are doing better"?
Um...no.

So even when things get better, as they have been for 4 straight months, employment will not follow. Many, many of these people will not be rehired.
Simply shutting off the compensation to millions of people would be a disaster to the economy. Disaster.
So what do we do?
How long can it go on?
What is the "new normal" for unemployment levels? 7-8%?
How do we deal with that?

It disturbs me that these questions are not being asked.

 

It does serve as an agent of temporary social control.

 

It disturbs me that these questions *need* to be asked.

We've created a new sub-minimum wage working class.

 

This plus leverage for excess consumption was the inspiration for William Jennings Bryant's "Cross of Gold" speech in 1896.

 

Our legislators can't even read a fucking bill, now you're expecting them to ask questions? How unreasonable! Next, you'll insist they pay taxes! Americans are so demanding!

 

The answer to your question is yes, this is the new welfare. And yes 7-9.8% is the new norm.

The answer to the problem is to reject that standard wisdom that we need to import cheap labor to pay our entitlements and reverse the trend of illegal aliens taking jobs in this nation. There are at least 6 million jobs on the line, enough to offset those lost in the recession and at wages that are better than unemployment.

If we need a cheap labor force tomorrow we will find one. TODAY we need those 6 million jobs for Americans.

 

This combines with a lot of concerns I have, as well as pretty much every business owner/manager.
I am not worried about what is happening now. I am worried about what will the new normal be.
"new normal" should be the buzz words of the year. I hear and read that phrase practically everyday.

Seriously, if the "new normal" for unemployment will be 7% say...that will require some serious adjustments.
Another one - wages and compensation.
We are in unknown territories here. There are people everywhere who have not seen any appreciable raise if any at all for 3-4 years. And along with no raises, reduced benefits. Companies getting out of pensions, no longer matching 401ks..mark my words - next will be companies getting out of health insurance.

Now that we are a nation that has finally come to the day to pay the piper for having an economy based on debt - what are we going to base it on now?

 

Actual labor I hope.

 

Not a "wage" since you don't work to collect uneployment compensation.

 

Just how long can one stay on unemployment and think anyone will ever hire them? 3 months is a long time to explain why one chooses to keep unemployment when one could make more even when vastly underemployed. There comes a point where it's the person's self-reliance that is called into question and also self-respect.

Sitting at home and wishing one had 'more than unemployment' just doesn't cut it.