LETTERS
The Economy, Cont’d:
The recent jump in the jobless rate has policymakers asking whether unemployment benefits, which provide about one-half of a worker’s income for about 26 weeks, are adequate.
Many suggest that states, which run the programs under a federal mandate, loosen their standards so that more people can collect benefits; that benefits be extended beyond their normal duration; or that the federal government throw more money at the problem. Unfortunately for out-of-work Americans, benefits often are inadequate, thanks to those same policymakers that now are bemoaning the fact.
All workers and enterprises must pay unemployment taxes but fewer than half of unemployed workers during any given month qualify to collect benefits. Many are ineligible because they earned too little money. Workers who are discharged from jobs “for cause” also are ineligible. Thus many workers pay into the system but are not allowed to collect.
When the economy was growing and unemployment was low policy makers were not interested in dealing with the clear defects of the system. Now that unemployment is rising they want to deal with the problem at hand while still ignoring the structural defects of the system, thus paving the way for future crisis.
This would be a good time to for policy makers to consider allowing an alternative to the current system. Workers could be allowed to open tax-exempt employment accounts to which they and/or their employers might contribute. These accounts would be their private property. Thus every worker would have access to the money they contribute to their accounts.
Further, the accounts would give them more flexibility than the current system. For example, a worker might use money from the account for retraining for a better job.
Edward L. Hudgins
Director of Regulatory Studies
Cato Institute
Washington, D.C.
Local Relief Effort
It’s been well publicized that a great deal of money has been raised to support the relief efforts in New York and Washington, but what’s been overlooked is the fundraising crisis facing many other charities throughout the nation. The terrorist attacks, the national relief effort and weakness in the economy have combined to leave many important community organizations,childcare centers, domestic violence shelters and agencies that help displace workers,without the donations they may need to keep their regular programs running.
In response, Orange County’s United Way and other leading United Way organizations across the country have teamed up to launch One Day’s Pay (www.onedayspay.org), a nationwide campaign to be directed entirely through the Internet urging Americans, who do not already give to the United Way, to do so. We’re asking everyone across the country to donate all (or a portion) of one day’s pay to help local charities in their community.
Some important things to know about the One Day’s Pay campaign:
n You can donate any amount you want, up to one day’s pay.
n All contributions made through One Day’s Pay automatically go back to your local community, unless you designate otherwise.
n 100% of your contribution will go directly to the United Way in your local community to help charities in need. One Day’s Pay will not receive a single penny.
n This effort is separate from any other United Way giving program you may already support. We ask you to continue to support those programs as well.
n The campaign runs through Dec. 31.
People have already been asked to give a lot of money to help relief efforts, so we know it is hard to consider giving again. But our hope is that people will visit the Web site and consider making a donation. We’re also asking people to forward the link to three or four friends, and tell them to forward the site to others. Spreading the word is as important as making a contribution.
Maria Chavez Wilcox
President
Orange County’s United Way
Irvine
