Unemployment Benefits Extension

In the past two years, Congress has occasionally passed an extension of unemployment benefits. There's a public dispute, as Republicans try to block the law.

"Unemployed people get more money." is logically equivalent to "Higher taxes for everyone who has a job." There's no free lunch. If Congress gives money to people in group X, then everyone not in group X pays higher taxes to compensate.

The mainstream media proclaims "Those scumbag Republicans are blocking the unemployment benefits extension. What about the unfortunate unemployed people?" They don't say "Hooray! Everyone who has a job should thank those Republicans for keeping their taxes down."

The unemployment benefits extension is financed via deficit spending. There is extra inflation, in an amount equal to the extra unemployment spending.

Unemployment insurance is a disincentive against finding a job. Suppose your old job paid $5k/month, your unemployment check is $2k/month, and you're offered a job paying $3k/month. The value of the job isn't $3k/month; it's only $1k/month. You give up the unemployment benefit when you accept the job.

Unemployment benefits encourage abuse. You can collect unemployment while simultaneously having an off-the-books job. Is that immoral? The State doesn't have legitimate claim to any property, making the answer "Not really. If you abuse State welfare programs, you're merely claiming unowned property." Still, I wouldn't do it. (Even though I've been fired a bunch of times, I never successfully collected unemployment. I only bothered applying once.)

Unemployment insurance is a great State control program. Unemployment insurance forces idle workers to register with the State. The "official unemployment rate" is based on unemployment claims.

Unemployment insurance is funded via taxes. An employer's unemployment insurance tax rises whenever he fires a worker. By raising the cost of firing someone, the State makes it harder to hire someone. Unemployment insurance really hurts businesses that hire seasonal workers.

Unemployment insurance drives out private unemployment arrangements. People are already paying for State unemployment via taxes. This crowds out mutual-based unemployment charities or arrangements.

Unemployment insurance is funded via a payroll tax. It isn't a deduction. The employer pays it. Like Social Security and Medicare, the tax comes out of the pool of money otherwise available for salaries. Workers get lower salaries due to the cost of unemployment insurance. The tax is invisible to most people, because your employer pays it. If there were no unemployment/Social Security/Medicare taxes, then workers would get a pay increase approximately equal to the cost of the tax.

The fact that the employer pays it, makes it seem like it isn't a real cost. State parasites love hidden indirect taxes. The slaves are less likely to notice hidden indirect taxes.

People say "Politicians are being so generous, by extending unemployment benefits." It's very easy to be charitable with other people's money!

"An unemployment benefits extension" is logically equivalent to "Higher taxes for everyone who has a job." The mainstream media never explains this correctly.