Unemployment Funds Abuse -Reform That Could Strengthen the Economy

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    Unemployment Funds Abuse -Reform That Could Strengthen the Economy

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    Common complaint among today’s society.
    Nearly everyday we hear on TV and among our society, the general upset over the current unemployment system. People are protesting and voice their disappointment in the way the unemployment is being distributed, to many marginal individuals who abuse it, and are not motivated to look for work since they feel well taken care of. We often hear about illegal immigrants and others draining this found just because it’s easier than going to work. Almost each of us knows somebody who has been sitting on unemployment for a very long time, while supporting a dysfunctional habits and way of life. I believe that unemployment program should be a temporary solution and help in hard times-not a way of life. I believe that it should be a relief for those who need it, not a support for the decay of a workforce and support for dysfunctional individuals. Our economy and society deserves better.
    The Idea.
    The essence of this plan is to strengthen the economy, cut waste in social services without affecting the ones who need it, and reduce unemployment by providing extra GDP and help to small business without spending any additional money. This plan achieves the following:
    -Provides financial aid to those who have lost their work.
    -Helps those who lost their work acquire new skills, knowledge and experience necessary to find new attractive career.
    -Discourages abuse of unemployment funds by lazy individuals.
    -Encourages people to find employment.
    -Gives people a chance to find employment.
    -Provides new jobs, production, services, GDP and growth for the economy.
    -Helps small businesses and corporations.
    -Helps cut unnecessary spending.
    But how could all this is achieved without any negative consequences? It is because the negative consequences can be easily turned into positive ones, making this plan attractive for all three; government, private companies and the people. Again, this is just an idea presentation, it can be tweaked and adjusted several ways, but the essence behind it constitutes as follows:
    Currently we have a high 8.7% of unemployed individuals. They receive the benefits in exchange of turning in a half a page paper, where they list the jobs they applied for and when. The problem is that nobody checks it and some individuals can enjoy a long free ride on taxpayer’s money while depleting our budget, without attempts to find work.
    Now according to this plan, the unemployment recipients, in order to continue receiving their benefits (which they normally would still be receiving anyway) are provided with an opportunity to choose, where they would like to volunteer possibly 2-4 hours (numbers can be adjusted) of their daily time. The options may include:
    -Federal/State sector- the recipients may help in production, manufacturing, city services such as cleaning, parks, recreation, libraries, also Medicaid, Medicare, SSN offices (which are very understaffed), or even help in law enforcement, military etc.
    -Local Businesses –small businesses in the area which do not have money to hire additional help, however this would allow them to grow, and other companies that would benefit in extra production, increasing their revenue, creating more jobs and producing more taxes.
    The unemployment recipients may choose or be assigned (either/or) where they would like to volunteer their time, based on either their preference and whichever career they are interested in and which skills they acquire could benefit them in future. It becomes like a free job training or free college certificate, and also can be used on the resume.
    In this example I used 2-4 hours, due to the fact they need to still have time to look for jobs, send/fax their resume, schedule and attend interviews etc. 2-4 hours is not a lot for one person to take from their day, but if each individual puts this time into either federal/state production or small business help we might see an enormous growth in the economy, GDP and services very fast. This system does not have to require the whole 5 days either, it can be 4 days giving the individuals still time to run errands, and full days to interview. Therefore if they schedule interviews for that week, they can be allowed to take that day off (with 3-4 hours it wouldn’t bee too much of a problem anyways).
    Similar as currently, the recipients ought to turn their signed (maybe even stamped to eliminate forgery) and dated timesheet to the EDD (Employment Development Department) at the end of each week. Once the fulfilled their voluntary service, they can receive their next check (as currently, the only difference is they are productive).
    This system is much more effectively executed and enforced than the current one. Whereas, currently nobody in EDD takes priority to check wheatear the unemployment recipients really applied for the jobs they listed on their EDD sheet, -now we just created a large workforce of people –some of those can be used in within the Employment Development Department, as inspectors who can call to make sure the recipients did in fact fulfill their obligation.

    Benefits to the Private Companies/Businesses.
    Local companies and small businesses can enjoy free internship and help. They might expand their production, products, and services they ways they would never be able to if they had to hire people. Many small business owners cannot afford to hire employees, which stops them from growth and sometimes expansion and prosperity. This system allows all of them to expand, produce more goods and services, they are able to pay more taxes and ultimately influence the boom of the private sector.
    Benefits to the Federal/State Sector.
    Reduces unemployment by discouraging abuse. Promotes employment. Eliminates waste in unemployment by filtering dysfunctional individuals, and putting them to good use, instead of supporting “stay-home” ways of life. Eliminates understaffing in fed. And state entities such as SSN, police, Medicare and Medicaid, parks and recreation, education and city services. Provides extra strength to all the ones above without additional funds. Improves healthcare, social services, law enforcement and education without spending extra money. Reduces depletion of fed. And state budgets, by reducing the unemployment funds abused by inappropriate individuals –so in fact not only we end up not spending any more money –we save more money increasing workforce the same time. Increases revenue from taxes (see benefits to private sector). Allows the economy to boom by expansion of private companies. Finally produces new products and services for the American people consequently reducing the debt and producing surplus in the budget.
    Reception in among the society.
    People who care about finding new jobs, learning new skills and working on the future of this country should gain from the new opportunities. Certainty all those who used to be comfortable abusing the system shall oppose, why would you want to leave home, even if its only a few hours to learn new jobs or skills, if the couch has been so easy in the past. Alongside the benefits for the overall economy and society, it is detrimental to emphasize the benefits for the individual people.


    Benefits for each of us.
    1. Opportunity of free education in the desired area, with hands on experience (instead of paying for a certificate, we can learn from the actual industry).
    2. Acquiring new skills, job-set or trade.
    3. Experience to put on and strengthen the current resume, to be more attractive for future employers.
    4. Possibility of long term employment without looking –if the employer is pleased with one’s performance and would like to hire them for a long term.
    5. Opportunity to network, establishing relations and future employment within the same employer whenever he/she is ready/has vacancy or by partners, or others within the same industry.
    Although there is much more benefits, I believe those are the most crucial, making a large contribution to a potential job seeker’s arsenal.
    Conclusion.
    The aforementioned is to strengthen the economy, cut waste in social services without effecting the ones who need it, and reduce unemployment by providing extra GDP and help to small business without spending any additional money (actually producing more while paying less from the budget), reducing the debt and producing surplus within the budget.
     

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