JOBSEARCH: Unemployment “insurance” makes no sense.

Carnival Entry from Peter Clayton –
November 7th, 2006

Peter is the man with the microphone. Peter Clayton doesn’t have a “blog” – he has a podcast site.

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Sixth. File for unemployment benefits immediately!

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With all due respect, I list this as a waste of time. For other than the factory hands, it’s just not a good use of time.

For example, in one of my transitions, filing for the unemployment benefits in NY by a NJ resident required FOUR in-person visits and repeated under oath certifications that no activity was engaged in that MIGHT be considered “consulting, contracting, or collecting other economic benefit EVEN IF NO TAXABLE INCOME is earned or money is exchanged”. Sheesh! Who writes this stuff?

On another transition (I’ve been “out” seven times in XXXX years! Let’s call it several decades. I’m planning to be “earning” until I FINALLY land … in my grave. That’s the only time you can stop preparing, worrying, and networking!), I took thirteen hours to collect two checks for a total of $800! (I followed the outplacement counselor’s advice and did it. By the time, I collected my second check, I had a new and better job. I TOLD the counselor what I thought of his advice. He said I was “lucky”. I’d call it “focused”. Your Mileage May Vary!)

I think you just have to write this money off as “government theft”. To chase it, takes your eyes off the prize to begin again generating value, and retaining some of that value for yourself.



I personally think that, like extended warranties, if someone came to you with the Government’s Unemployment Insurance, you’d laugh them out of town. First of all, ask any insurance underwriter, they will tell you that it is not an “insurable risk”. It’s unavoidable (i.e., happens to everyone) and avoidable (i.e., your personal conduct can influence the outcome). It’s not beyond your control. It’s not random. And, insurance spreads out risk across a pool and levels the cost, so why would someone be in that pool with you.

This is a government scam. It creates a tax that can masquerade as “insurance”. They get a pot of money to employ and reward themselves, their relatives, their friends, and most importantly their campaign contributors. All at the expense of the people who can afford it least. We don’t get a chance to look under the covers at income and out go, but if we use gut feeling then 75% of the “premiums” extracted are wasted. Also, it makes everyone a “welfare queen”.

It is especially despicable to force the working poor to pay such a tax. They’d be better off getting ALL their money. They can make their own decisions as to what is best for them.

If it was an insurable risk, needed, and demanded, why don’t we see insurance companies, banks, brokerages, and credit unions offer such insurance?


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