Unemployment Insurance

Unemployment Insurance

Unemployment insurance (UI) is an essential part of the American social safety net. UI gives laid-off workers time to find or retrain for a new job while ensuring their purchasing power (this is especially important during economic downturns).  The federal government first established nation wide coverage with the Social Security Act of 1935. Under this system states play a crucial role, jointly financing and administering the program with the federal government. Generally, benefits last a total of 26 weeks. During recessions extensions are typically issued, although conservatives often attempt to block the legislation.

Commentary

Unemployment

Screwing the Jobless: Are Republicans Heartless or Just Playing Hardball Politics?

July 20, 2010

Cry Wolf Quotes

…to impose this burden at this time, when industry is just struggling to get on its feet, is going to still further retard the very recovery which is necessary to create these reserves. That is the basis of our opposition to these provisions.

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P. H. Gadsden, President Chamber of Commerce, Philadelphia, Testimony, House Committee on Ways and Means.
03/21/1934 | Full Details | Law(s): Unemployment Insurance

…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.

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John C. Gall, Associate Counsel National Association of Manufacturers, Testimony, House Committee on Ways and Means.
03/21/1934 | Full Details | Law(s): Unemployment Insurance

The fundamental objection to the whole plan is that it is based on the false assumption, not merely that the world owes every man a living, but that employees in industry owe a living to every person who chances to be employed in that or any other industry.

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Editorial, Los Angeles Times.
04/03/1934 | Full Details | Law(s): Unemployment Insurance

Such a law would inevitably operate to hold down the number of employees on the pay roll as well as to prevent and minimize increases in the rate of pay, so that the burden of the tax could be reduced to the minimum. These bills, in our opinion, are contrary to the spirit of the Constitution of the United States and inconsistent with the many decisions of the Supreme Court on analogous questions of taxation…

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Los Angeles Times, editorial.
04/02/1934 | Full Details | Law(s): Unemployment Insurance

Related Laws and Rules

Evidence

Backgrounders & Briefs

Unemployment Policy Brief: Shermer

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.

Resources

Center for Economic and Policy Research (CEPR) is a progressive think tank that concentrates on social and economic policy, both domestic and international.

The National Employment Law Project is an organization that promotes economically just public policy in the face of the prevailing trends of the law several decades.