Interesting that the Europeans claim that the Gypsies were stealing their
wealth from the old Soviet block after it fell as if they were bad people
for doing it.   Where do you think all of that European post Columbian
wealth came from.    The Gold in the church idols was stripped from Indian
bodies.    The gold around the Torah scrolls as well.    The Opera, the
opulence and birth of so many new musical technology like the piano, the
French woodwinds, etc. etc. and the rest of their musical heritage was
funded by war and pillage.   

 

So why wouldn't they think that the poor were not just another version of
Indians or the Soviets or African cattle herders?      Of course where do
you think Mitt Romney stole his religion from?    When you look at it in
that light Dresden makes sense.    Anyone see the 1990s movie   "Map of the
Human Heart?"      Where's Farley Mowatt when you need him? 

 

REH

 

June 30, 2013


War On the Unemployed


By
<http://topics.nytimes.com/top/opinion/editorialsandoped/oped/columnists/pau
lkrugman/index.html> PAUL KRUGMAN


Is life too easy for the unemployed? You may not think so, and I certainly
don't think so. But that, remarkably, is what many and perhaps most
Republicans believe. And they're acting on that belief: there's a nationwide
movement under way to punish the unemployed, based on the proposition that
we can cure unemployment by making the jobless even more miserable.

Consider, for example, the case of North Carolina. The state was hit hard by
the Great Recession, and its  <http://www.bls.gov/lau/> unemployment rate,
at 8.8 percent, is among the highest in the nation, higher than in
long-suffering California or Michigan. As is the case everywhere, many of
the jobless have been out of work for
<http://research.stlouisfed.org/fred2/series/LNU03008636?cid=32451> six
months or more, thanks to a national environment in which there are
<http://www.epi.org/publication/unemployed-workers-outnumber-job-openings/>
three times as manypeople seeking work as there are job openings.

Nonetheless, the state's government has just
<http://talkingpointsmemo.com/news/north-carolina-becomes-first-state-to-eli
minate-unemployment-benefits.php> sharply cut aid to the unemployed. In
fact, the Republicans controlling that government were so eager to cut off
aid that they didn't just reduce the duration of benefits; they also reduced
the average weekly benefit, making the state ineligible for about $700
million in federal aid to the long-term unemployed.

It's quite a spectacle, but North Carolina isn't alone: a number of other
states have cut unemployment benefits, although none at the price of losing
federal aid. And at the national level, Congress has been allowing extended
benefits introduced during the economic crisis to expire, even though
long-term unemployment remains at historic highs.

So what's going on here? Is it just cruelty? Well, the G.O.P., which
believes that 47 percent of Americans are "takers" mooching off the job
creators, which in many states is denying health care to the poor simply to
spite President Obama, isn't exactly overflowing with compassion. But the
war on the unemployed isn't motivated solely by cruelty; rather, it's a case
of meanspiritedness converging with bad economic analysis.

In general, modern conservatives believe that our national character is
being sapped by social programs that, in the
<http://www.huffingtonpost.com/2012/03/20/paul-ryan-welfare-reform_n_1368277
.html> memorable words of Paul Ryan, the chairman of the House Budget
Committee, "turn the safety net into a hammock that lulls able-bodied people
to lives of dependency and complacency." More specifically, they believe
that unemployment insurance encourages jobless workers to stay unemployed,
rather than taking available jobs.

Is there anything to this belief? The average unemployment benefit in North
Carolina is
<http://thinkprogress.org/economy/2013/06/28/2231691/north-carolina-unemploy
ment-benefits/?mobile=nc> $299 a week, pretax; some hammock. So anyone who
imagines that unemployed workers are deliberately choosing to live a life of
leisure has no idea what the experience of unemployment, and especially
long-term unemployment, is really like. Still, there is some evidence that
unemployment benefits make workers a bit more choosy in their job search.
When the economy is booming, this extra choosiness may raise the
"non-accelerating-inflation" unemployment rate - the unemployment rate at
which inflation starts to rise, inducing the Federal Reserve to raise
interest rates and choke off economic expansion.

All of this is, however, irrelevant to our current situation, in which
inflation is not a concern and the Fed's problem is that it can't get
interest rates low enough. While cutting unemployment benefits will make the
unemployed even more desperate, it will do nothing to create more jobs -
which means that even if some of those currently unemployed do manage to
find work, they will do so only by taking jobs away from those currently
employed.

But wait - what about supply and demand? Won't making the unemployed
desperate put downward pressure on wages? And won't lower labor costs
encourage job growth? No - that's a fallacy of composition. Cutting one
worker's wage may help save his or her job by making that worker cheaper
than competing workers; but cutting everyone's wages just reduces everyone's
income - and it worsens the burden of debt, which is one of the main forces
holding the economy back.

Oh, and let's not forget that cutting benefits to the unemployed, many of
whom are living hand-to-mouth, will lead to lower overall spending - again,
worsening the economic situation, and destroying more jobs.

The move to slash unemployment benefits, then, is counterproductive as well
as cruel; it will swell the ranks of the unemployed even as it makes their
lives ever more miserable.

Can anything be done to reverse this policy wrong turn? The people out to
punish the unemployed won't be dissuaded by rational argument; they know
what they know, and no amount of evidence will change their views. My sense,
however, is that the war on the unemployed has been making so much progress
in part because it has been flying under the radar, with too many people
unaware of what's going on.

Well, now you know. And you should be angry.

 

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