Most of the help we give to the unemployed is contingent on two things:

1. They don't have income and

2. They are looking for a job.

That seems like a great way to test for unemployment benefits but what it fundamentally does is ensure that if you are unemployed and need the help you can't try to supplement through self-employment. Thus our current unemployment assistance largely works to discourage new businesses from starting.

A better system would be a mandatory severance system where if you find yourself unemployed, you get a lump sum. You can look for a job, become self-employed, try to start a business with it, or any combination of these. But when it is gone, it is gone.