Unemployment insurance was a critical part of President Franklin Delano Roosevelt’s New Deal, a lifesaver during a period defined by economic volatility, depressed wages, and record unemployment. Beginning in 1935 with the Social Security Act, short-term relief was provided for the unemployed to provide for their basic subsistence and maintain their purchasing power. Unemployment insurance generally lasts up to 26 weeks, although in the wake of the Great Recession the Obama Administation extended benefits to 99 weeks.
Cry Wolf Quotes
…finally, it is paternalistic and incompatible with our fundamental conception of democracy.
…it still is true that the young people of today in this country look to the people who have succeeded in spite of every handicap such as that, as their inspiration for doing things. I think we do not want to kill off that spirit of individualism. I use the term ‘individualism’; I know it is sneered at a lot, but I know if is still a respectable term and I think we ought to cultivate it instead of sneering at it.
It would undermine the fabric of our economic and social life by destroying initiative, discouraging thrift, and stifling individual responsibility.
It will hasten mechanization of all processes and thus permanently reduce employment. It will force employers to keep wage rates at the lowest possible minimum and thus reduce the amount of the tax.
San Francisco Fed Finds Unemployment Insurance Doesn't Significantly Contribute to Unemployment Levels
Unemployment insurance doesn't encourage people to stay jobless.
Moody’s Analytics Advocates Unemployment Insurance as Stimulus
For every $1 spent on unemployment benefits, GDP increases by $1.61.
Congressional Budget Office Says Unemployment Benefits Have Strongest Stimulative Effect
Unemployment benefits make macroeconomic sense during a recession.
Backgrounders & Briefs
By Elizabeth Tandy Shermer, PhD, February 2010
Unemployment insurance benefits – including their length, eligibility, and expense – are again in the spotlight. The arguments are hardly new.