End of jobless benefits: Good for America?
Will job market see boost?
- Duration 8:11
- Date May 19, 2012
Will job market see boost?
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Hundreds of thousands of Americans are losing their extended jobless benefits and some of -- say.
That's actually great news for the job market now that is a flip side hi everybody I'm David -- welcome to -- on FOX here -- -- today Steve Forbes.
-- -- guard Victoria Barret -- ball one recover.
And Elizabeth -- so rich why is it good the jobless benefits are expiring.
We know David when a democratic President Bill Clinton ended welfare as we knew it in the 1990s.
It turned out that it was good for welfare recipients and good for the economy people got jobs they learned how to get up and go to jobs.
This is called tough love now ideally you'd like to have a 4% growth economy to end.
I'm jobless benefits but we don't have that it's not gonna happen under the Obama administration.
But job openings are to four year -- so we might as well take advantage of that.
So -- it's tough Mattis then but in the end it's for the good.
Well I've -- we're all happy to see that they're starting to be some jobs opening up this is obviously a reflection on some good work being done by the administration.
What does concern me.
Are the people who are out there saying -- now these people who have been cruising on unemployment.
Are going to be forced a gun get a job look the average check to somebody on unemployment in this country.
Is just south of 300 dollars a week there are people watching this show right now.
Who are trying to support a family I'm less than 300 bucks a week if you don't think they've been out there trying to find anything making yet.
You're just not being honest these people have wanted jobs all want.
And let me tell you something it's not like if you're overly trade you can walk in the McDonald's and get a job no matter how much you might wanna let's be a little easier on these -- Well but Vic -- even the president's chief economic advisor Alan Krueger wrote a paper back in 2008 before it was working for President Obama.
Suggesting that there is our core relation between unemployment benefits and joblessness that is there is incentives matter and the more incentives you have to go out and get a job but sometimes the more you find jobs.
Yep and I I I -- Read enough about this topic to believe that that's absolutely true in many cases.
There are exceptions I'm with Rick there.
But for the most part you don't wanna you -- that 300 dollar check.
Isn't enough to support a family.
But is -- enough to hold you back from finding that -- it might be especially in this environment -- finding a job is really darn tough.
And what we risk as a country is just this ballooning in entitlement spending.
Or a debtor nation it's it's not a healthy place to be and hey now's the time to cut back a little we do you see jobs out there.
And -- added up and it's more than that 300 dollar figure that Rick was talking about.
Yet as more and look I am of that.
Mindset and we want to help the poor absolutely I want to help people.
With food who need food stamps and with unemployment benefits like get that the -- -- policy problem though is you can't be doing 99 weeks of unemployment benefits.
When he -- economic policies of you know that caused 2%.
GDP growth -- -- growth.
Where you have they you know basically social safety -- where Vick -- country after country.
Have become victims of their own social safety net because of bad economic policies that are coming out of Washington DC the worst -- private job creation since 1950.
All new net jobs since 1980 -- come from companies less than five years old these small businesses are panicked over what you're seeing coming out of Washington.
And bella -- -- -- after 99 weeks it's sort of becomes a habit doesn't it.
Well I think the expiration of benefits is going to stimulate some people get jobs is gonna depress other people who can -- paper groceries and I think that there's a way.
To gets the liquidity and a tough job market.
At the same time you don't destroy incentives and it's very simple.
You give workers ownership of their unemployment funds and tell them that -- uninspired any unused amounts will become there's -- retirement.
Incentives but liquidity all right while Steve that we saved you for Alaska's we want you to put at all in a package work is their relationship.
Do unemployment benefits incentivize.
People not to go out and get a job.
Yeah after a while it it does happen even Denmark which is one -- -- biggest safety nets around in the world.
A sharply cut back of -- length of time several years ago and found that that people got jobs when they felt they had to.
The not gonna get rich obviously and unemployment but they're getting a job and then moving up again or starting a business which a lot of people do that's I get the economy moving.
Rick -- never let me read to you from -- crew were again this is president Obama's chief economic advisor.
He wrote in 2008 -- cross the fifty states job search is conversely related to the generosity.
Of unemployment benefits this is the president's own economic advisor.
Yeah and I guess we'll see how this turns out but I have to tell you I I am very sensitive.
To what comes across you know suggesting that that people are gonna get into a habit.
Let me tell you something when you're trying to raise a family of four I'm 300 bucks a week that's not something that becomes a habit that's something that becomes complete pain.
Let's just be a little bit careful yes there are people out there who will will take advantage.
And yes I agree at some point we do run out of money you can't do it forever -- -- people who are trying their hardest.
By saying that -- Villa he I don't know.
Qualifying people who were trying their hardest but rich the fact is is that there have been times.
When some tough medicine needed to be taken -- under Ronald Reagan a Republican under Bill Clinton.
Who changed the welfare rules so that people had to go out work at the time that they were excoriated.
By that talk saying you're against the poor but in the long run.
It helped everybody now.
You know sometimes it just takes top slot you don't tell now -- Holler -- attic to cut back.
You tell them that they have to stop because they're destroying their lives now I'm not saying that the people who are jobless.
Have put themselves entirely into that situation.
And its entire country's responsibility.
I think here but rather than tax overtaxed people and add to the national -- What President Obama should do is get on his bully pulpit and get.
The people who are employed doing well.
You know to volunteer time to train the unemployed.
They're really think about adding new jobs and stuff like that we could do this is a country the first George Bush.
You talked about the thousand points of light this is what we need at this time you met -- more taxes.
We don't do it yesterday -- here -- saying about getting the people who create jobs who are being attacked and vilified by this White House.
I mean even as president taking the little -- -- he could make a rainbows sound defeatist.
The right thing in in this sort of like we don't tie it again in periods of the united states -- -- -- score it also the United States have been the Asia the problem is economic policies are so bad over taxation.
Over regulation -- -- -- inflation possibly coming down -- -- that's the problem David.
Well so I have a radical idea I think a lot about long term unemployed tend to be older people in their fifties.
So I think if we actually increased.
As the age that you become eligible for Social Security.
We would see a rise in employment levels in older people there's a mentality in our country because of that Social Security age.
That older people are sort of retirees they're not going to be good workers if it -- different managing those older worker and that's why we're seeing them show up in these long term unemployment.
Steve the overall question is whether these unemployment benefits -- a safety net which we all agree.
Is necessary some kind of safety net or a -- That it becomes hard for people to get rid of well over time that it does that end up hurting you rather than -- helping you.
And that again gets to the thing that more this administration fails.
The more we have debates like this we did very well 26 weeks until this presidency the last few years.
I'm most unemployed got to jobs within a couple of months after losing their jobs that's been lost because the sluggish economy that's the real problem last -- for -- --