THE ECONOMY
The 'new normal' and unemployment
Politicians and economists now talk about the "new normal." They're just using an euphemism to describe the elephant in the room that deserves a more honest description. We now have, and will have, a decreased standard of living in this country. Most of us will have less money or purchasing power. Our belts will be tighter.
That reality is not all bad. People are beginning to realize there's more to life than accumulating possessions and having a good time.
Besides, part of the reason the cutback is happening is a more even distribution of wealth around the world. Other peoples are competing with us, and are actually getting at least a sliver of the pie. That competition can be good for us, too. Granted, there are still huge gaps in wealth within those nations, and workers are underpaid, even exploited. But overall, the trend is upward. We will survive. Now more of them can, too.
JIM BARTOS, BROOKLYN PARK
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The July 20 letter about unemployment "Long-term benefits make people lazy" is an example of short-sighted, presumptuous thinking that seems to pervade the conservative ideology, and demonstrates a lack of understanding of basic economic principles.
The unemployment insurance program acts as an automatic stabilizer. When employment grows, program revenue rises through increased tax revenues, while program spending falls as fewer workers are unemployed. This creates a surplus of funds for the program to draw upon during a recession. In a recession, unemployment insurance tax revenue falls and program spending rises as more workers lose their jobs and receive benefits. The increased amount of payments to unemployed workers puts additional funds into the economy. Thus, unemployment insurance benefits actually serve to enhance the economy rather than deplete it.
Fewer than 5 percent of unemployment insurance recipients have received benefits for more than 12 months. I'm curious to know what documented evidence validates the letter writer's statement that "some people have been getting benefits for years, and stopped looking for a job long ago." Since that statement cannot be verified, to believe it blindly is a choice, a choice to be ignorant. Why are we as a society so eager to vilify those who, in the vast majority of cases, are seeking benefits as a result of plain old bad luck?