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Not only higher taxes Americans could be facing in the new year.
Many unemployed folks will -- federal unemployment benefits and -- congress extends them.
But with the price tags of jobless benefits of more than half a trillion dollars over the past five years as the price to -- Jonathan collect -- joins me now he's communications director for North American -- -- Jonathan -- -- coming back on the show.
Let's say we got news tonight that the president's opening bid.
In these fiscal cliff talks with extending these jobless benefits for another year.
So he's doubling down on his policy he wants more jobs benefits what's the cost of that.
And do you think that it's a good idea or a bad idea.
Well they're two things there -- their short term cause of how it's gonna really poisoning the well these negotiations -- -- imagine that we're we're talking about deficit reduction and the president is proposing new spending.
On top of all the other spending that we're trying to cut for the -- elect Republicans going into the deficit reduction talks you're talking about you know another dividends tax cutters opening night edited -- a very very poisonous way.
To start sincere negotiations between the two sides.
But the second thing that's important here is how we're reviewing.
These jobless benefits in the administration is framing them in terms of job creation that's not what they are that there -- two different temporary thousands of people yeah.
-- have quite the CBO came out instead this is a study they did they said that extending these jobless benefits would create 300000 jobs what's.
What I mean I -- to read it twice to figure out what that they were talking about.
And assuming no sense frankly that may explain the contorted logic at work here.
Whether saying is that by putting money into the pockets and unemployed people they're going to be able spend it on rents are going to be able spent on consumer goods and that's gonna create jobs in the real estate industry demand and the retail industries.
The problem is that it doesn't take into account and -- people -- -- for jobs they would so also be doing that it is kind of double counting the money.
And it did the difficult thing here is that we're talking about unemployment.
As an economic benefit.
We're not looking at the point of what this program -- -- -- to temporarily help people who are having a hard time finding god this is not France this is not Greece where we have a whole class of people who are permanently on the government all this -- this -- the United States of America where we temporarily help people and if we're looking at these if these unemployment programs as as economic benefits we're really kind of going to -- European direction and I don't think that that's where this debate needs to be.
You -- just reminds me -- it reminds me of the Obama administration's treatment -- food stamps.
And -- range of social benefits were not only do they make them available and then -- how long they're available for but they also advertise them.
It's a good thing to get this aid you meet this federal -- -- -- think they've they have an ad for the food stamp program where they describe it as a diet plan for goodness sakes.
This is a wholesale change in the way Americans think about being on the -- about getting federal assistance.
Yeah it's it's it's a decline -- industrious -- -- that we see from that from -- Charles -- -- Korea talks about it and that they're not coming apart.
Which which talks about have visited there -- there's a just -- declining industrious nest among folks among among folks in the working class and talks about how they it's not only food stamps is not only have that we've.
Extended the temporary unemployment benefit every year since 22008.
So timely temporary thing anymore it's becoming a permanent thing but there's also increases in permanent disability claims was a security and the list goes on and on and it's we're really facing Canada I think it tipping point here where we could be going in the way of France -- in the -- Greece -- we have a permanent class of people.
Corn the government government dole and that's not a good -- that's not a good place and a.
Talk about those social cost because.
It's not just the cost the government which we frankly can't afford right now but it's also the cost to society of encouraging people to opt out to sit at home.
To be on my couch to watch TV it is something other then work productively in the economy.
Yeah BV what what are there one of their new sources that there was talking about this policy.
I quoted a guy who is planning on the unemployment benefits lasting until the early -- -- -- thirteen.
And now that he knows that they might not he is looking for -- -- -- -- -- I mean -- reality is unemployment.
Is no fine I can't tell you I have been on unemployment benefits I've been on that line back when they had lines and you didn't do it on speed on line.
And it's embarrassing -- At the end of the day if you're on it too long it works against itself some might view do you agree.
It does work against itself because if if you're if you allow it to last for such a way.
That it distorts the incentives to work and that's what bad news driving it it's not a laughing matter that somebody doesn't have a job.
But you can see the distortions in the incentives when somebody is you know planning on the unemployment lasting for another six months and they're not looking for jobs or at least they're just kind of going to -- emotional looking through job in order to continue getting the benefit.
-- -- got up as soon as I couldn't I was glad -- it glad to have the money glad to get off adult.
And that's what they have no option but I have to tell you we've got to do something different in this country Jonathan thanks for coming -- appreciate it thank you -- me averages.