A Common Proposal For Managing Unemployment Essay

1538 Words Nov 27th, 2016 7 Pages
In America during the 1930s, unemployment was an issue that caused many debates over how to deal with it and the same is true now. A common proposal to manage unemployment is to provide insurance for the unemployed, which would support those who are unable to work, such as seasonal workers, and improve the economy during economic depression. However, providing insurance for the unemployed would actually increase the unemployment rate and harm the economy. Instead, the American government should continue its welfare system, giving out support as needed, those of retiring age should retire, and individual businesses should create a reserve fund that unemployed workers could draw from for their paycheck when they are unable to work. Today, nearly eight million American citizens are without work, which may appear small compared to the one hundred and fifty million people with work (Employment 11), but the average unemployed American has been without work for about nine months (Employment 13). This shows that, while there are relatively few unemployed workers, those who are unemployed have been so for a very long time. Therefore, insurance would be unable to support the majority of these people because the proposed insurance plans usually support short-term unemployment, rather than long-term unemployment. Long-term unemployment is usually managed by programs such as food stamps and welfare. The biggest problem with unemployment insurance is that it is often given out as a…

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