News and Opinion
The concept of Moral Hazard happens when a body, an organization, government or corporation, mishandles money that is not theirs and they have no responsibility for it.
Unemployment Benefits and Claimants:
The only documentable adverse behavior that can be proven, is that politicians are showing their true colors. Special interests can not get people into employment positions to work cheap, and the current leadership has not created an environment that inspires and enables small business to thrive and choose to conduct business within their state, so the same people that were considered essential front-line heroes when it was convenient for photo-ops soundbites and headlines, are now hurting.
“No Evidence” that UI Benefits were a factor, as per Yale University Study
“These supplemental payments were intended to provide short-term assistance to individuals who lost their jobs, through no fault of their own, at the start of the pandemic," McMaster said. "Continuing these supplemental benefits would have converted that emergency aid into a dangerous federal entitlement, incentivizing workers to stay at home rather than applying for one of the over 86,000 open positions in the State of South Carolina. Businesses large and small are fighting to survive and thrive, and they should not have to compete with federal benefits when looking for employees.” (Styf, 2021)
The thought process of if the state eliminates the incentive of the extra CARES Aid from the COVID Crisis Unemployment Insurance beneficiaries would be incentivized to find work faster. This could not be further from the truth because, while the Governors of the states involved want to look like leaders, they fail to acknowledge that as job seekers have adapted their budgets in some cases to live with less, employers have learned to operate with less, employees and labor costs. To be eligible for unemployment benefits individuals, job seekers, but be doing just that seeking work. The individuals were at one point not required to search, because much of the commerce and business was closed due to COVID mandates from the State. (Iacurci, 2021)
Employers Must Take Responsibility
The job seekers can only do so much, apply to so many postings and wait for decisions to be made, it is squarely on the employers to hire. If employers are not hiring, then the job seekers should not be penalized. Just because a posting is publicized, that does not mean that a position even exists. (Guerin, May 2021)
Based on a recent Yale study, publicized by House Speaker Nancy Palozzi, “In fact, a new study released by Yale University last week showed just the opposite – finding “no evidence” that pandemic unemployment benefits were a disincentive to going back to work. (Cummings, 2021)
The economics of this matter are simple, we have politicians who make over one hundred thousand dollars who can not relate to the needs of average citizens. There are things to consider that are not strictly financial, it has to do with family. If job seekers go back to work there are considerations such as childcare, transportation and household cleaning, all these things are not covered by Unemployment Insurance, or Food Stamps. The politicians can look back and say that they supported the CARES Act, before they didn’t, and forced the same people that politicians called front line heroes back into the line of fire of COVID delta variable while Governors sit behind closed doors in their mansions, making a hundred thousand dollars or more a year.
Most Recently, as of today, a lawsuit against the Governor’s Office asking for an injunction in the blocking of the federal emergency aid went on deaf ears by a federal judge because the plaintiffs cited the Social Security Act as reason for the injunction. Governors have the option to participate or not participate in federal laws. (Styf, 2021).
Adjudication (McMasterbation) without Representation
The fact that a lawsuit was placed against the governor of South Carolina and the citizens that placed the lawsuits did so anonymously says everything about the governor. Did these individuals fear pushback from the South Carolina Department of Employment and Workforce and the Governor's Office? Anyone can be investigated and their claim stopped at any time for any reason, then the Claimants could find themselves going up against a former real world California prosecutor, or some home gamer whom was taking calls for work at home customer service. What is even worse, is you can be Adjudicated against without any representation or input until after the decision then you have to communicate with the office via fax, and compete with everyone else who has been adjudicated against to respond within an unreasonable amount of time. So, citizens, taxpayers have to fight against their own government when they have limited income to battle against college trained legal experts, the unlimited power and treasury, (paid for by taxpayers). So the States are fighting against you with your money, taxpayers.
Read between the Party Lines
If you have not noticed, and do your own homework, all the states that have taken money out of the cash register drawers of small business owners, black business owners, woman business owners, local business owners are mostly the same party. At least one governor just brought in a new business and there are no employees willing to work for them, how much money did that politician receive from the medical industry during COVID? and did that influence your executive orders endangering the Citizens. That's the kind of adjudication we need.
In 2020, the Great American Economic Revival Industry Groups was created to obtain industry guidance on how to manage the crisis, including leaders from industries, and celebrities. Now that we have hit the first plateau of the crisis, and the next wave is about to hit, employers can not understand why American working class will not return and risk their lives, for wage rates that do not pay over basic poverty lines.
References:
Sources:
Iacurci, G. (2021, July 22). States cutting unemployment benefits didn't get people back to work, study finds. Retrieved from https://www.cnbc.com/2021/07/22/cuts-to-unemployment-benefits-didnt-get-people-back-to-work-study-finds.html
New Yale Study: 'No Evidence' Expanded UI Discourages Return to Work. (2020, August 03). Retrieved from https://www.speaker.gov/newsroom/8320
Lisa Guerin, J. (2021, May 06). Who is Eligible for Unemployment Benefits? Retrieved from https://www.nolo.com/legal-encyclopedia/collecting-unemployment-are-you-able-32445.html
Unemployment Insurance Relief During COVID-19 Outbreak. (n.d.). Retrieved from https://www.dol.gov/coronavirus/unemployment-insurance
Jon Styf | The Center Square contributor. (2021, August 13). Judges tosses lawsuit seeking to reinstate federal unemployment benefits in South Carolina. Retrieved from https://www.thecentersquare.com/south_carolina/judges-tosses-lawsuit-seeking-to-reinstate-federal-unemployment-benefits-in-south-carolina/article_a5e58db6-fc7d-11eb-89ec-af7752275f5a.html
Jones, C., & Menton, J. (2021, July 09). 'I'd rather work': Debate rages as states cut unemployment and workers seek jobs, better pay. Retrieved from https://www.usatoday.com/story/money/2021/07/09/unemployment-benefits-jobs-worker-shortage/7826616002/
Cummings, M. (2020, July 27). Yale study finds expanded jobless benefits did not reduce employment. Retrieved from https://news.yale.edu/2020/07/27/yale-study-finds-expanded-jobless-benefits-did-not-reduce-employment