Smarter Unemployment Coverage--German Style

[CalHunter]

Has anybody seen this yet? It has some intriguing "think outside the box" concepts and makes me wonder why America isn't at least exploring it. I've only quoted part of the article to save space but have included a link so people can read the entire article. What do you guys think about this idea?


http://www.bloomberg.com/apps/news?p...d=ax3kyE3bILDY

U.S. Should Try Germany’s Unemployment Medicine: Kevin Hassett

Commentary by Kevin Hassett - November 8, 2009 21:00 EST

Nov. 9 (Bloomberg) -- As the U.S. unemployment rate surged to 10.2 percent in October, economists scratched their heads and puzzled over the job-creation failure of the biggest stimulus package in the nation’s history. Across the Atlantic in Germany, policy makers were high-fiving as their unemployment rate unexpectedly ticked lower for a second time after peaking at 8.3 percent in June and July.

While economic differences can be difficult to explain, the remarkable resilience of the German labor market is clearly and directly attributable to a specific economic policy. German policy makers have been innovative and clever. The Germans have discovered a secret medicine that can cure unemployment, or at least minimize its spread. Americans would do well to take some.

The policy in question is called “Kurzarbeit,” which translates approximately as “short work.” Firms that face a temporary decrease in demand avoid shedding employees by cutting hours instead. If hours and wages are reduced by 10 percent or more, the government pays workers 60 percent of their lost salary. This encourages firms to use across-the-board reductions of hours instead of layoffs. ....

The German program so far this year has cost a measly $2.85 billion. Adjusting for the larger U.S. population, that suggests the U.S. could fully copy the German system for $10.6 billion -- about one-seventieth the cost of the stimulus. (Emboldened emphasis mine).

....

[halfbakedi420]

i gotta say, when it said only TWO BILLION 850 MILLION DOLLARS...i lost interest. i understand what you're saying, but it is just another program to spend money we aint got. like they would really let go of a paycheck..ig stimulus money...they would just have em both
like seal team 6 is on their 3rd name, still collecting checks from the previous 2 names as well as their new name. more money to play with..did ya see that chopper lol

[CalHunter]

I don't think you understand what I am saying or what this article is reporting.

[sachiko]

I like it. If you must have unemployment compensation, and in this world, I think you do, that's a really great way to structure it.

It provides income, keeps people connected to their jobs, and enables the employer to retain a skilled, trained work force when business improves.

[s. il. hntr]

As for what I get from the article, it means taxpayers will have to pick up the workers lost wages. Sounds like more taxes to me. On a side note I still say CAREER welfare recipients should have to do public service for their checks/food stamps. Maybe some will get the idea that they may as well be employed at a regular job, there are after all, plenty of lower paying jobs to be had.

[Fieldmouse]

How about if we just do away with unemployment insurance all together and make it the worker's responsibility to save for a rainy day?

OK, many here don't truly believe in personal responsibility, so lets make it 3 months and thats it? This 2 years of welfare and on top of that renaming it "Unemployment" is totally crazy. I've now met 3 people who prefer the free money to actually working. Hmmm, they are called porch monkeys in the cities. What should we call them in the suburbs? They don't really have porches to sit on there. Some sit around their pools, go shopping at malls and not sure what else.