Paying for couch time

The unemployment claimants aren’t to blame in either case. First, they were forced out of their last job. Second, the current policy allows and often provides them an incentive to stay out of the workforce. The problem is with a policy that provides a pay check for almost two years.There are assuredly better ways that the money can be spent. It is easy to imagine a private version of unemployment insurance, and without the multiple levels of bureaucracy it is almost guaranteed to be more efficiently administered. Undoubtedly, politicians will worry and declare that employees won’t buy unemployment policies, but state governments have mandated car insurance and the federal government recently mandated health insurance, so while a mandate isn’t the most American solution it should quell many of these leaders concerns.

It is time to fix the broken system. If unemployment insurance is going to continue to be a public good then it should focus more on job placement and job creation. Small businesses are the job creators. In fact, according to the administration, small businesses have created 65% of all net new jobs over the last decade, and should be given an incentive to hire the unemployed. For instance, the unemployment check could follow the employee to their new employer and phase out over time. This would effectively lower the marginal cost of employment, or the opposite of the current policy. Furthermore, benefits should be taken away from claimants who refuse a job while on unemployment insurance.

The current policy promotes a couch potato way of life. Many of us would enjoy being able to spend almost two years, paid time, with our family, but this does nothing but further hinder an already hobbled economy. Reform needs to happen soon, before businesses are forced to pay even higher unemployment taxes.

Roses Ammon is Vice President/Sales, Marketing & Recruiting of Staffing Kansas City, and has 14 years of industry experience. Roses now holds the position of Learning Chair for EO Kansas City as well as Forum Moderator.