Unemployment Insurance

Unemployment Insurance

Unemployment insurance (UI) is an essential part of the American social safety net. UI gives laid-off workers time to find or retrain for a new job while ensuring their purchasing power (this is especially important during economic downturns).  The federal government first established nation wide coverage with the Social Security Act of 1935. Under this system states play a crucial role, jointly financing and administering the program with the federal government. Generally, benefits last a total of 26 weeks. During recessions extensions are typically issued, although conservatives often attempt to block the legislation.

Commentary

Unemployment

Screwing the Jobless: Are Republicans Heartless or Just Playing Hardball Politics?

July 20, 2010

Cry Wolf Quotes

It will hasten mechanization of all processes and thus permanently reduce employment. It will force employers to keep wage rates at the lowest possible minimum and thus reduce the amount of the tax.

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George C. Lucas of the Publishers Association in Associated Press, Washington Post.
03/31/1934 | Full Details | Law(s): Unemployment Insurance

…finally, it is paternalistic and incompatible with our fundamental conception of democracy.

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James L. Donnelly on Behalf of the Illinois Manufacturers Association, Testimony, House Committee on Ways and Means.
03/21/1934 | Full Details | Law(s): Unemployment Insurance

The imposition on industry at this time of the tax burden contemplated by this measure would render business recovery absolutely hopeless. Manufacturing industry is now engaged in a desperate struggle in an effort to continue operations and provide jobs. Most industries have been operating at a loss for several years. Industry is not prepared at this time to accept the added burden as contemplated by this bill.

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James L. Donnelly on Behalf of the Illinois Manufacturers Association, Testimony, House Committee on Ways and Means.
03/21/1934 | Full Details | Law(s): Unemployment Insurance

It [this bill] would increase unemployment by aggravating the very conditions which it is attempting to correct, by crippling the agencies which furnish opportunities for employment, by discouraging efforts to relieve unemployment, and by placing a premium on idleness.

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James L. Donnelly on Behalf of the Illinois Manufacturers Association, Testimony, House Committee on Ways and Means.
03/21/1934 | Full Details | Law(s): Unemployment Insurance

Related Laws and Rules

Evidence

Backgrounders & Briefs

Unemployment Policy Brief: Shermer

By Elizabeth Tandy Shermer, PhD, February 2010

Unemployment insurance benefits – including  their length, eligibility, and expense – are again in the spotlight.  The arguments are hardly new.

Resources

Center for Economic and Policy Research (CEPR) is a progressive think tank that concentrates on social and economic policy, both domestic and international.

The National Employment Law Project is an organization that promotes economically just public policy in the face of the prevailing trends of the law several decades.