A Bigger Piece of the Unemployment Pie


Running through some Labor data, I came across this:

40% of all the payouts for the last twenty years in unemployment benefits happened in the last 5 years – when the Great Recession “officially” ended. This isn’t even accounting for the slashes in unemployment benefits that Congress has made in the past 5 years.

What a coincidence that the total unemployment benefit payout in the last 20 years is roughly equal to the TARP bailout given to banks in 2007. In one shot of the “bazooka,” banks were given the equivalent of all the unemployment benefits for the last 20 years.

Who pays for these benefits? Mostly employers. However, if the employer no longer exists, or so many people are unemployed that insurance cannot cover everyone, then the taxpayers pick up the tab. This is what’s known as “social cost,” where the tax payers are paying for something that is a result of corporate decisions.

And isn’t it interesting that there are more “lazy workers” that just want to collect money for nothing (as the Republicans would want up to believe) in the past 5 years, than in the past 20 years.

The Great Recession ended because economist measured it with positive GDP growth. This bigger piece of the unemployment pie means that it didn’t really end.

This entry was posted in Labor, Political Economy, Public Policy, Sociology, Wages. Bookmark the permalink.

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