Capitol Hill lawmakers are turning to a new pet project to fix America’s finances: The millions of dollars flowing every year to millionaires via the unemployment insurance system. Link
This article discusses the unemployment insurance that is being taken by several households throughout America who have over a million dollars. These families or individuals are simply sitting on their wealth while also taking government assistance. The argument for these people is that the total dollar amount is so small that they should not even be questioned.
How do you feel about millionaires receiving unemployment advantages or assistance from the government in general?
This is the article I mentioned yesterday in my talk, (that I found during class). While it may not make sense on the surface, the simple fact is that these individuals--ARE PAYING to receive this type of insurance. Insurance is a device for risk management, so they paid for a risk securing instrument, to help protect their nest-egg (regardless of its size).
ReplyDeleteOne of the inherent qualities of insurance, is that is is unilateral. This meaning, it stands as an unequal exchange, where only one side will pay in the end. On the one hand, for those that receive benefits, they will probably receive more than they put in to cover the cost of the insurance. Lets say a millionaire pays out $10,000 in "unemployment insurance"...gets injured, and thus receives a much higher amount. This is the nature of insurance as an 'unequal exchange'.
However, insurance companies are willing to take this risk because of the flip-side, whereby individuals DO NOT file a claim. In the opposite scenario, this individual paid in $10,000 but receives nothing in return, for they are still able to continue working. The majority of the time someone pays for unemployment insurance, they do not actually end up receiving benefits (regardless of paying for them). So in essence, despite our inability to empathize with a millionaire's quantification of 'needs'...the simple fact is, these individuals are getting exactly what they paid for. As a contractual obligation, it is compulsory that they be paid.
^^^^Government acts as the "insurance company" in this scenario. However the principles are the same regardless.
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ReplyDeleteI agree with Andrew. As unfair as it may seem that the wealthy have benefits that would help the poor more, they are entitled to it. They are paying their monthly bills to cover their insurance in case of any emergency. It is their right to get the help in return. This is the way that the system works and we all have to respect it.
ReplyDeleteAs unfair as it seems, Andrew is right. He mentioned it in class that he worked for an insurance company and I did as well a couple years ago and with people like that, they are more than willing to insure them because they like the potential of that person not being insured and the premium would be really high. If they are paying for it, they should get it. I think it is more shocking with the lower levels of income but still more than most where billions of dollars are going to instead of the couple million to the millionaires. It doesn't seem fair and it seems that others could use the money elsewhere but if they pay for it, then they deserve to get what they have been paying for.
ReplyDeleteI'll be the first to say I am inept in any true discourse in unemployment insurance. I'll give my two cents anyway. In the case of the "insurance company," labeled as the government, it was my understanding that the unemployment check was made up of 50% government spending, and 50% from the previous employer. However the arithmetic works out, those who are considered "comfortable" receiving benefits should be receiving them from the pool to which they contributed. If not, it seems there could be an argument made for them not receiving the amount from their employer. But, as the article points out very eloquently, the benefits going to millionaires represent .02% of total unemployment benefits, so, there are probably more pressing issues we can tackle than the millionaires collecting unemployment.
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