MONEY: “Unemployment Insurance”, a Gooferment scam

http://irisheagle.blogspot.com/2010/08/govteu-funds-hard-to-find-for-laid-off.html

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the EU’s much heralded relief for Waterford in the wake of the crystal factory closing down has not worked out the way the workers thought it would.

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Perhaps, “unemployment compensation” is a scam played on “We, The People” for the benefit of the “caring” politicians and bureaucrats, who need an excuse for a public paycheck.

Why is it that, in the free market, you can buy: car, fire, life, disability, homeowners / renters, and even umbrella insurance? But not “unemployment”???

(Why would anyone insure one’s umbrella?)

The answer is that it’s not a relatively random rare event that hits a pool of people who can pool the risk.

Like “social security insurance”, Obamacare (Which is socialized medicine), Medicare, Medicaid, or FDIC bank insurance, NONE of these is TRUE insurance. These, like “unemployment insurance” are really welfare programs in disguise.

Insurance companies serve several very useful functions: find people for the pool, estimate the risks, collect all the premiums, invest the money so it’s available when needed, investigate claims, and pay off as needed.

All done at a reasonable cost for administrative and profit. When you think in terms of taxes paid versus funds dispense, you have to wonder how much “unemployment insurance” costs. See what is deducted form every paycheck everywhere is no way the true cost. And, when you consider that the bureaucrats are earning hefty salaries with life time benefits and pensions that can be “stuffed” at the end (i.e., bureaucrats work “overtime” in their last years to score an enhanced, often obscene, pension).

Of all the insurances, “life” insurance is the perfect model. Everyone probably wants to share that catastrophic risk. In large populations, the risk is easily estimated. Fraudulent claims are few and far between. Premiums are low by any measure. Especially when bought young.

So, “We, The People” have to resist politicians going into the “insurance” business and embrace the “evil” insurance companies for their ability to cheaply pool our risks.

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