1. The State of Michigan has decided to raise the unemployment tax rate to all of the businesses in the state. The Detroit News reported it and it just shows how messed up things really are in Michigan.
2. Some 40,000 businesses all received a letter stating that they need to pay more into the fund to help cover the amount of money going out to unemployed workers. I know if I was a business owner how pissed I would be. They already own a business in a state where the economy is the worst in the nation.
3. The unemployment debacle is only going to get worse over the next year or so. GM, Ford, and Chrysler are all on the brink of going bankrupt and do you know how many more people are employed by them?
4. Interestingly enough, the Detroit News had another article interviewing the Mayor of Warren James Fouts. He said if any of those companies go under some 23,000 people work for one of the Big 3 or its suppliers. This does not include the 3 jobs which live off of the auto workers like a barber, auto mechanic, deli owner, or your friendly bartender. This is just for the City of Warren. So what happens to the unemployment fund now? Do we really think a company who is going under is going to be ale to put money into the fund to help with unemployment benefits for 20,000 of its ex-employees? Probably not.
5. The unemployment assistance program has good intentions. Its there to help people make their 30 year mortgage payments and to buy groceries. But what do you do when probably 10% of your states workforce is going to be unemployed within the next year? The State of Michigan can keep borrowing money from Uncle Sam but only to put itself deeper in debt. The unemployment benefits is starting to backfire in a extreme way right now.
6. I know a thing or two about unemployment. Since December of 2007 I have been out of work. I collected unemployment benefits for the first time ever this past year. Sure, it helped me get by but I did something most people do not do. I have this habit of saving money for times like this. I always make sure I have enough money saved for at least a years worth of expenses. Some people say its hard to do but I disagree. The way I look at it is I got back all of the income taxes I have paid over the last two years. I would rather of been working but I feel like I am back at square one now.
7. Since I am still looking for a job and my unemployment benefits ran out after the second extension I am starting to use my savings. Of course I do not want too but that’s what its there for. I am against the whole unemployment benefits to begin with. Its not that I do not want to help people its that the system raises taxes on business owners, employs people who provide no benefit to the economy. An economist would call people who work at unemployment agencies a “net negative” employee. Their job was created by taxes to pay out more taxes. I found some info that the State of Michigan let go some 8,500 unemployment agency workers last year.
8. The real problem is income taxes. We are so heavily taxed that these programs almost are a necessity. Our way of life revolves around taxes and its getting out of control. What the Governor Granholm should do is close down the Michigan Unemployment Agency all together. This would save millions of dollars a year in operating costs. Put money back into business owners pockets to re-invest in their businesses.
9. The only way this is going to work is with a change in mind set. If we get rid of unemployment benefits people are going to know they cannot have a seasonal job and collect in the winter. They will have to get out there and work. They will have to learn how to save for a rainy day. They will have to take more responsibility for their own lives and not rely on the Government to bail them out.
10. Imagine if we could get rid of income taxes all together. This way you had control of the money you earned. If you want to blow it all on stuff, then its your own fault. If you want to be responsible, then you are that much further ahead.