Where do you suppose the money comes from for unemployment? It must be taxed or borrowed from someone else, diverting money used efficiently for money used inefficiently.
Ok, let's look at this. The money for UI comes from taxes on employers. The money is primarily from the states, supplemented as needed by the Federal government. So let's take away all taxes for UI. Would that mean that there would be no more unemployment? Of course not. So we'd still have people involuntarily laid off with no income or means to support themselves or their family until/unless they find a new job (which is almost never instantaneous).
In a recession/post-recession period, where large numbers of people are unemployed, this is worse, and the fewer people with income, the fewer people spending money, the lower the revenue for businesses.
It seems your claim is that without UI, none of this would happen or not be a major problem (if that's not your position, please clarify). But I don't see how that would work. How EXACTLY do you think the taxed amount would be used otherwise to alleviate these specific problems?
Yes, for some people, at some UI rates, there is a disincentive to work. I've never seen any data to suggest that at the relatively low benefits rate in the US that this has ever been a major issue (meaning while of course there is some abuse, it's not widespread and the harm from no programs at all would be worse).
Yes, the money could be used for other things, and probably more efficiently, but the NEED, efficient or not, is to alleviate the escalating problems of unemployment. During normal times, the 26 weeks from the state are more than adequate. Under current times, when average length of unemployment (for ALL people, not just those receiving benefits) is 40.1 weeks (mean...median is 21.1) it's clearly not.
I have pointed out the situation in Mexico, where there is no UI. Yes, the UE rate is lower, but for all the wrong reasons, and the results are just not good. Feel free to give another example of a place or modern time with no UI benefits where things work out just fine.
How is that a stimulus to anything except Democrats' re-election campaigns?
Because it puts money into the system at the right place and the right hands to improve things over no UI benefits. Yes, there can be a long-term cost from borrowing (though we should solve that by more efficient overall spending) but without taking care of the short run issue of unemployment, the long term costs would be higher.