Does Unemployment Insurance Increase Unemployment or Only Protect the Unemployed People?
To sum up, in many cases unemployment insurance increases unemployment, but also protects the unemployed. It depends on an individual- if he or she is really willing to find a job and use their benefits to do it. But human beings are cunning and avaricious, we always want to receive by doing less, and many of the unemployed will definitely use the unemployment benefits to live happily without working. In every market, also in the labour market, there has to be competition to keep it active and to make it operate healthy, but, as I said before, after inventing that new program with paying unemployment benefit for 9 months, it will increase unemployment what will cause a decrease of supply in the labour market and a decrease in the productivity of the businesses. To help our economy to develop, I would recommend cancelling this new program, and also it might be a good idea to invent that program “Simtlatnieki” not only in the public sector, but also in the private sector because it would definitely cause bigger socialization of the unemployed, they will be able to work higher qualified jobs and also they could really stay at that company and be employed there if they show their potential. …
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