Another failed government program, unemployment insurance

Governments have forced employers to withhold unemployment insurance from their employees. This is another government program that forces citizens to buy a service or product.

The government program of unemployment insurance is a failure. It does not collect enough premiums to pay for a high unemployment rate. The FDIC is another government forced insurance program that has only about 1.5% of the amount of deposits it insures. The government could not allow a run on the banks so it spent money it did not have.

When a government program fails there is no one to advocate eliminating the programs. Instead there are plenty of advocates who want to spend more money to save a failed program. All of the stimulus money of 2009 was to save the FDIC, the PBGC, the States, and other government programs that are run by government employees whose salaries and benefits are far superior to the private sector.

The latest proposal to help the failed unemployment insurance is $100 billion to give to the unemployed. The government and the American Chamber of Commerce hopes the unemployed will buy goods and services and therefore the stores will collect sales tax and prevent further unemployment. The government is desperate to keep the unemployment low for the election of 2010.

If the government wants to reduce unemployment the government should get out of the way. For two years the government should eliminate the EEOC requirements for employment. For two years the Federal and State governments should eliminate the minimum wage. For two years the government should eliminate the requirement to withhold social security taxes.

With these obstacles to wealth creation removed the U.S. economy will grow.

Charles Tolleson