Re:Additional 6.6M File for Initial Unemployment Benefits [pdf]
by cultus on Thursday April 02, 2020 @02:30PM
(#22762049)
Sure, a few people will be hired. But it is absolutely delusional to think that any significant percentage of people laid off will be able to get a new job anytime soon. There simply aren't enough jobs. Everyone really, really wanting it will just make those jobs harder to get, and will lead to lower pay and reduced safety.
This is not a time to be talking about bootstraps.
The economy isn't all-or-nothing. This situation is bad, but it's an exaggeration to suggest that no one is hiring.
The perverse incentive comes into play when people start turning down $20/hr jobs because they're making $23/hr on unemployment insurance. They'll want to go back to work eventually, yes, but they won't rush into it will literally cost them money to do so.
I'm not suggesting that unemployment insurance is comfortable or ideal, but I think it's important that we avoid situations where people must deliberately choose to reduce their income to return to work.