Sunday, December 12, 2010
You don't want to be unemployed in Vermont
The unemployment benefits that Americans our counting on may be cut due to concessions with the Bush Tax Cuts. But even if there are extension of unemployment, seven states may not recieve extended benefits. Vermont's residents will see cuts for 86 weeks to 60 weeks. The reason for these cuts is an unemplyment rate decrease to 6%. This is great for those lucky enough to find work but does not provide much consolation for those who are still looking.
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Unemployment benefits provide an incentive for people to stay unemployed. If we are seeing a decrease in unemployment then it only makes sense to decrease the benefit period. 60 weeks is still too high. If people are feeling the pressure to find a job, then a more proactive approach is heightened in those who are unemployed. Additionally, the tax gap is getting any narrower - unemployment is a credit that makes sense to cut.
ReplyDeleteI partially agree with Josiah. It is true that if unemployment benefit are cut that it gives the unemployed an incentive to find jobs. Though, I don't think this is the best time for the US to make these cut. Just last week, I read an article (which i talked about in this blog) that talk about unemployment still being very high. We are standing a little bellow the record high we experienced in the recent months. I would argue to restore a few weeks to unemployment benefits. We maybe out of the recession but the US economic out look is no where near sharp.
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