unemployment compensation: The new welfare?

[william the wie]

Quite correct LC, what is strange is that a blue president is pursuing the destruction of blue states. With the exception of FL and OH no traditionally republican state is even remotely in the line of fire.

 

[B. Kidd]

"The rate went up 475 percent from the rate it was in 2010,

holy smokes....

But that makes sense, the insurance is covering a term 6 times as long as it was before the extensions began.

Here in Nevada the unemployment tax rate paid by employers increases by 50 per cent starting in January.

 

[loosecannon]

"The rate went up 475 percent from the rate it was in 2010,

holy smokes....

But that makes sense, the insurance is covering a term 6 times as long as it was before the extensions began.

Here in Nevada the unemployment tax rate paid by employers increases by 50 per cent starting in January.

Which is where Obama's compromise goes off a cliff. He got nothing except a mandate that states or rather employees must pay for more unemployment extensions while the Bush tax cuts were actual tax cuts.

 

[B. Kidd]

But that makes sense, the insurance is covering a term 6 times as long as it was before the extensions began.

Here in Nevada the unemployment tax rate paid by employers increases by 50 per cent starting in January.

Which is where Obama's compromise goes off a cliff. He got nothing except a mandate that states or rather employees must pay for more unemployment extensions while the Bush tax cuts were actual tax cuts.

Even with this higher rate, the state will still have to borrow an additional $250 million by Sept. 30th on top of the $579 million it already has borrowed in the last 14 months, in order to keep paying the state portion of unemployment benefits.
Believe it or not, just three years ago, the state had $800 million in a trust fund to pay unemployment benefits!

 

[william the wie]

While tax and regulatory migration has been going on for centuries this will certainly speed things up.

 

[Trajan]

heres an interesting blurb I ran into today in the journal..interesting eh? he doesn't even listen to his own advisers...wel he aint around anymore but...


This incentive to work also conflicts with the disincentive to work provided by another extension in jobless benefits. The deal's 13-month extension will cost taxpayers about $56 billion. As economist Larry Summers noted before he joined the White House, every jobless person has a "reservation wage," or the minimum wage he'll accept to take a job. The jobless rate will thus stay higher for longer as benefits induce some people to hold out for a better job than those that are available.

from Review & Outlook: Obamanomics Takes a Holiday - WSJ.com

 

[Annie]

Since mid-October I've been working as a sub 5 days a week, only exception being Thanksgiving week. I make $23 more a week by working than by collecting unemployment after required deductions. Probably close to break even when gasoline factored in. So why?

I want a full-time job, this is the best way to get one.

After this short period of time, I've been booked nearly full weeks 'by request'. Today I asked for letters of recommendations for districts that are hiring next year for anticipated openings. Not a problem.

That's why one takes work over programs.

 

[iamwhatiseem]

heres an interesting blurb I ran into today in the journal..interesting eh? he doesn't even listen to his own advisers...wel he aint around anymore but...


This incentive to work also conflicts with the disincentive to work provided by another extension in jobless benefits. The deal's 13-month extension will cost taxpayers about $56 billion. As economist Larry Summers noted before he joined the White House, every jobless person has a "reservation wage," or the minimum wage he'll accept to take a job. The jobless rate will thus stay higher for longer as benefits induce some people to hold out for a better job than those that are available.

from Review & Outlook: Obamanomics Takes a Holiday - WSJ.com

This is a good article, and spot on.

 

[Trajan]

Since mid-October I've been working as a sub 5 days a week, only exception being Thanksgiving week. I make $23 more a week by working than by collecting unemployment after required deductions. Probably close to break even when gasoline factored in. So why?

thank you annie!...you have also just described exactly why the AFDC structure enacted in the 60's made it more attractive to folks NOT to get married and not to work. funny how things dovetail.

I want a full-time job, this is the best way to get one.

After this short period of time, I've been booked nearly full weeks 'by request'. Today I asked for letters of recommendations for districts that are hiring next year for anticipated openings. Not a problem.

That's why one takes work over programs.

good for you...good karma coming your way.

 

[iamwhatiseem]

Since mid-October I've been working as a sub 5 days a week, only exception being Thanksgiving week. I make $23 more a week by working than by collecting unemployment after required deductions. Probably close to break even when gasoline factored in. So why?

I want a full-time job, this is the best way to get one.

After this short period of time, I've been booked nearly full weeks 'by request'. Today I asked for letters of recommendations for districts that are hiring next year for anticipated openings. Not a problem.

That's why one takes work over programs.

Well done.
And I guarantee when the time comes - you will be the one who gets the job.
I have hired 100's of people in my time.
The first, and most often - the ONLY area of someone's application/resume I look at is their employment history.
Long bout of no employment?...next!

 

[Paulie]

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.

Already happening. The incentive for companies not required to offer insurance under Obamacare doesn't even come close to the costs offering insurance will bring. I estimate that upwards of 90% of the businesses not required to offer healthcare under the new regulations will NOT. I dropped mine for my company this year, and will split into two or more companies if/when we begin to approach the employment requirements that will make us applicable to Obamacare.

And that sector of small business employs well over 70% of all Americans.

I understand why you would make that kind of move. You gotta do YOU.

But on the flip side, it's the collective of businesses in the whole nation all thinking along those same lines that ends up being the problem.

If business owners all made the move collectively to hire some more people (assuming they have an actual use for them), it would be a positive for money velocity.

Just like how no one wants to take a chance on a 3rd party becuase they think everyone ELSE won't, businesses won't take a chance on hiring more because they think everyone ELSE won't.

And the net result is we get nowhere and continue looking to the government to magically create a solution when they obviously have no ability to do so.

 

[Paulie]

There's plenty of ******* money to go around right now, it's just being hoarded.

Instead of crying about taxes and regulations, even though they are PART of the issue, take a ******* RISK.

If you're a successful business owner, it's how you got where you are to begin with. Despite any tax rates or regulations that were in place, you still took a risk and got where you are. Taxes and regs have sucked forever, and they will probably never stop sucking.

Quit crying about it and just take a risk. ALL of you.

 

[Trajan]

There's plenty of ******* money to go around right now, it's just being hoarded.

Instead of crying about taxes and regulations, even though they are PART of the issue, take a ******* RISK.

If you're a successful business owner, it's how you got where you are to begin with. Despite any tax rates or regulations that were in place, you still took a risk and got where you are. Taxes and regs have sucked forever, and they will probably never stop sucking.

Quit crying about it and just take a risk. ALL of you.

you first.

 

[Paulie]

There's plenty of ******* money to go around right now, it's just being hoarded.

Instead of crying about taxes and regulations, even though they are PART of the issue, take a ******* RISK.

If you're a successful business owner, it's how you got where you are to begin with. Despite any tax rates or regulations that were in place, you still took a risk and got where you are. Taxes and regs have sucked forever, and they will probably never stop sucking.

Quit crying about it and just take a risk. ALL of you.

you first.

I did. I invested $40k to open a preschool and spent most of 2010 on the start-up.

Revenue is tight right now, it's a couple kids away from being profitable, but we created 2 full-time jobs and 2 part-time jobs, as well as a partnering agreement with an independent contractor on a side service the school offers.

Biggest risk of my life BY FAR. during the worst recession of my life.

Your move.

 

[loosecannon]

There's plenty of ******* money to go around right now, it's just being hoarded.

Instead of crying about taxes and regulations, even though they are PART of the issue, take a ******* RISK.

If you're a successful business owner, it's how you got where you are to begin with. Despite any tax rates or regulations that were in place, you still took a risk and got where you are. Taxes and regs have sucked forever, and they will probably never stop sucking.

Quit crying about it and just take a risk. ALL of you.

At the time we all thought Bush was nutzo to beckon us to shop for the sake of the nation after 9/11. But in the crazy world in which we live he was spot on.

But even his feeble effort to revive a flawed economy eventually ended in disaster.

Spending today and taking risks today won't fix the economy. We need a completely new economic architecture. Anything less will fail.

The system is broken!

 

[Paulie]

And for clarification...that $40k was all the money we had to our name, besides a couple months rent on our dwelling kept aside for obvious reasons.

 

[Trajan]

There's plenty of ******* money to go around right now, it's just being hoarded.

Instead of crying about taxes and regulations, even though they are PART of the issue, take a ******* RISK.

If you're a successful business owner, it's how you got where you are to begin with. Despite any tax rates or regulations that were in place, you still took a risk and got where you are. Taxes and regs have sucked forever, and they will probably never stop sucking.

Quit crying about it and just take a risk. ALL of you.

you first.

I did. I invested $40k to open a preschool and spent most of 2010 on the start-up.

Revenue is tight right now, it's a couple kids away from being profitable, but we created 2 full-time jobs and 2 part-time jobs, as well as a partnering agreement with an independent contractor on a side service the school offers.

Biggest risk of my life BY FAR. during the worst recession of my life.

Your move.

I have zero urge to own my own business....

 

[william the wie]

Paulie you are not talking risk as in what is the likelihood of winning with a four card straight flush. What you are advocating for everyone else (and perhaps yourself) is somewhere between uncertainty and trying to buck the house pc.

 

[iamwhatiseem]

There's plenty of ******* money to go around right now, it's just being hoarded.

Instead of crying about taxes and regulations, even though they are PART of the issue, take a ******* RISK.

If you're a successful business owner, it's how you got where you are to begin with. Despite any tax rates or regulations that were in place, you still took a risk and got where you are. Taxes and regs have sucked forever, and they will probably never stop sucking.

Quit crying about it and just take a risk. ALL of you.

Easy to say when it isn't your money. And your house. And your retirement.
Obviously you are not in business, or you would have an entirely different outlook.
Right now in most industries it is dog eat dog, backdoor sales tactics and guerrilla-style management. Unfortunately all of this is due to a supreme lack of loyalty of both consumers and business purchasers. There is NO sense of being able to depend on anything anymore.
There is a saying in business in the last few years -

There is no new revenue. Any "new" revenue a company gets is a loss of revenue for someone else.

Think about that statement. Think about the environment it creates.