Economists: Budget deal cutting unemployment insurance may not help recovery

  • Article by: Jim Spencer and Dee DePass , Star Tribune staff writers
  • Updated: December 13, 2013 - 10:06 PM

Compromise in Congress is not expected to do much to reduce jobless rate.

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upnorth85Dec. 13, 1310:27 PM

Ms. DePass, the situation in MN is that we are close to full employment. It is very hard to attract employees to many skilled jobs in MN. Even in Manufacturing, where I work as a consultant the situation is dire. I know of many employers in out state MN who have shut down plants in SW Minnesota and moved the plants to Texas. There is a mismatch of skills in MN. STEM and Manufacturing jobs are plentiful The counseling and community organizer type jobs will continue to be in short supply due to the massive oversupply of people and long term contracting of county and city jobs as pensions eat up an increased portion of the city and county budgets. It was also not fair to mention how long people can receive benefits before they are pushed off the unemployment benefits. There is a reason why this is a temporary payment - to encourage unemployed to retrain and go for jobs where there is demand. Simply chasing the same type of job one lost is a futile excercise.

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dogmanDec. 13, 1310:33 PM

'But more people would drop out of the labor market than would end up with a job.' -- wait, what? A teapublican policy would force workers out of the labor, market? People dropping out of the workforce and onto welfare is their favorite comeback whenever there is a good jobs report...

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gemie1Dec. 13, 1310:43 PM

I feel bad for many of these people. We need programs that retrain people to go into other fields and find employment.

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obstakesDec. 13, 1310:50 PM

At some point it had to stop, right? We can't just pay people to stay unemployed, can we? Any economist will tell you that the economy has to find it's bottom in bad times, before it naturally bounces back. I doubt we have hit bottom yet. Wait until the dollar implodes due to the gov't malfeasance of the last 30 years.

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ljagerDec. 13, 1310:55 PM

Who could blame anyone for turning down a $10-$13/hr temp job. In fact, you'd be crazy to do so. After you pay taxes, put $3/gal. gas in your car, drive to wherever, pay daycare for your child, etc. You are virtually spinning your wheels for what - nothing! Most cos. want to try before they buy so you have nothing going into your retirement or any benefits what so ever. The co. and the temp agency are the only ones benefitting. At the end of the contract you then need to satisfy a new waiting period before you can get benefits again. When I was out of work I specifically asked the person I talked with at the unempl office if I was expected to take any job offer and they told me flat out no, I could continue to look for a comparable job to what I had before earning within 80% of my prior wage. So, if someone was making $24/hr why would they want to work for half that when they are getting more in unempl is beyond me. Just sayin'.

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comment229Dec. 14, 13 4:20 AM

There are so many issues here and so many points of view, that you could debate this issue for a year and not resolve it. Most of the time, you will find that everyone's situation is unique. You will find sincerity and also ineptitude when it comes to those looking for jobs. A recent study, done this year, shows people on welfare making 2.5 times as much income and benefits, as someone who works at a minimum wage job. Now, what would you do? Change is needed, but unfortunately, the ones that have to make the changes, are the ones that created the system.

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comment229Dec. 14, 13 4:25 AM

PS... When the news broke that an agreement had been done, the headlines pointed out two facts. One, the extended unemployment benefits would end, and second, that more money would be made available to the military for ships and weapons. I suggest if a new ship is started, it be commissioned as the U.S.S. Unemployed. Simply, our military is bloated.....And as long as that stays the same, you can tell me we have a budget problem all day long and I will still laugh at you at the end of the day and tell you, "No, we don't."

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palsarDec. 14, 13 5:10 AM

"People dropping out of the workforce and onto welfare is their favorite comeback whenever there is a good jobs report..." --- MN's unemployment number is back to pre-recession levels, why should they continue to receive unemployment? Where was your concern for the unemployed before? Welfare/Unemployment were never meant to be a lifelong benefit. It has to stop at some point.

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WaterBunkerDec. 14, 13 5:51 AM

The unemployment compensation issue exposes liberals' circular thinking. Give people money, make them unemployable at market rates, give them more money and claim the economy will suffer if you stop. The logical extension of the concept would lead to total government control of all economic activity.

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mnavariceDec. 14, 13 6:05 AM

How to differentiate between people busting their tails(like this woman appears to be doing) and those have no intention of working?

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