Unemployment Self-Insurance By Howard Levine January 9, 2003 President Bush has made an interesting proposal for unemployment insurance funds that would give unemployed workers $3000 to spend for expenses related to finding a new job. In order to encourage a faster, more economical job search, any funds remaining would be available to the unemployed person in cash after he found a job and held it for a minimum period. I think the objective of giving people incentives to find a job and get off unemployment benefits is good, but I think this could be accomplished more efficiently with less tax money while still helping people handle economy related job transitions (AKA layoffs). The current unemployment insurance (UI) program is employer based rather than employee based. Experience rating with unemployment insurance claims is used to determine UI tax rates for employers based on the company claims rate. Ultimately, however, the worker, by choice of jobs, work habits, training, and ab...
Political Commentary