GOP Sen. Kyl: Unemployment Benefits Make People Not Want To Get A Job

A debate on the Senate floor Monday over unemployment compensation crystallized, at least for a moment, the divide between the two parties in Washington.

Sen. Jon Kyl of Arizona, the Republican whip, argued that unemployment benefits dissuade people from job-hunting "because people are being paid even though they're not working."

Unemployment insurance "doesn't create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work," Kyl said during debate over whether unemployment insurance and other benefits that expired amid GOP objections Sunday should be extended.

"I'm sure most of them would like work and probably have tried to seek it, but you can't argue that it's a job enhancer. If anything, as I said, it's a disincentive. And the same thing with the COBRA extension and the other extensions here," said Kyl.

Unemployment benefits are generally so small that much of it is often used to pay for COBRA health insurance, even when subsidized. The size of the benefits does not generally cover the cost of living and it would be hard to find a single person who would prefer unemployment to having a job so that they could get subsidized COBRA.

HuffPost readers: Have you received a letter notifying you that you would lose your benefits? Have you missed a check? Please let us know -- email [e-mail].

Sen. Max Baucus (D-Mont.), about as far from a populist as can be found in the Democratic Party, appeared surprised at Kyl's claim.

"The Senator from Arizona argues that unemployment insurance is a disincentive to jobs. Nothing could be further from the truth. I don't know anybody who's out of work and is receiving some unemployment insurance believes that that payment is sufficient not to find a job. The payments are so much lower than any salary or wage would be, it's just ridiculous. I might add, there are five unemployed Americans today for every job opening in the economy," said Baucus, chairman of the Finance Committee. "People are looking for work. They're not unemployed because of choice."

He added that Kyl's economic argument was flawed, as well. Unemployment benefits do create jobs because the recipients cycle the money through the economy. He cited a Congressional Budget Office analysis that said the Gross Domestic Product grew $1.90 for every dollar the federal government paid out.

Baucus, ever the bipartisan, gave Kyl a chance to take his accusation back.

"I don't know if the senator really meant this, but he certainly strongly implied, in fact, I took him to mean that unemployment insurance is a disincentive for people to look for work," said Baucus.

Kyl asked to clarify. "My colleague quoted me correctly -- almost correctly," he said. "I said, it's not a job creator. If anything, it could be argued that it is a disincentive for work, because people are being paid even though they're not working. I certainly did not say, and would never imply, that the reason people don't have jobs is because they're not looking for them. Now, it is true that a lot of Americans have gotten so tired of looking for jobs or -- or believe that they're not gong to find them, that they have stopped looking."

Still, Kyl concluded by standing by his statement.

"What I said is true and if my colleague could find a source that says it's not true, then please show me. But providing unemployment benefits does not create jobs," he said, though Baucus had already directed him to the CBO analysis.

Kyl could also consult economist Dean Baker of the Center for Economic and Policy Research. "It puts money into people's pockets and they spend almost all of it. That creates jobs," he said.

Arthur Delaney contributed reporting

Comments

[Lou Ann Langston]

02:00 PM on 04/15/2010

I'm so sick of politicians. No one can live on unemployment benefits....NO ONE....Wake up people...Republicans and Democrats don't give a rats about you....none of them. Vote them all out!

[destiny492]

06:58 AM on 03/24/2010

Talk about ABUSE OF POWER, are these IDIOTS for real. Yes I am living the life of luxury with my $185.00 a week payment from unemployment as homes are being foreclosed, familys destroyed. The food pantrys can't keep up with the demand of new families on there program,, many are the very same familys receiving food when just 2 years ago they where donating to them, Yes the thought of me reading by candlight is a little tempting. PLEASE GET RID OF THESE IDIOTS , to think they represent us, to think they could possible know what is like to be without, and constant worry.

SHAME ON THEM

[BlueDemon508]

05:49 PM on 03/22/2010

Sen. Jon Kyl of Arizona ..... I want a job interview. Give me an opportunity to get a job. I'm looking. I'm ready!

[charliet1017]

10:39 AM on 03/04/2010

yep gotta be the idiot comment of the century. You can't receive unemployment benefits unless you are looking for work.

[cosmotopper777]

02:55 PM on 03/03/2010

It takes a catastrophe to change a corrupt status-quo...

This debate, like the debate over health-care, bailouts, stimulus packages and the destruction of our ecosystems, serve only as reminders that a democracy is only as good as it's citizens. It took Pearl Harbor for this nation to recognize the necessity for sacrifice, and form the consensus required to defeat Hitler. The sub-prime meltdown in September of 2008 might have provided the catalyst for exposing the culture of greed and entitlement which has hobbled this county, and reduced it to a corpulent caricature of a once lean and industrious nation. Instead, those who created it, were allowed to consume even more of this nation's credit to cover it up, and reinstate their hegemony over our economic practices.

We produce nothing the rest of the world needs, and our GDP is comprised almost entirely of conveniences and recreational luxuries we sell to each other, and which are fabricated for us by far less affluent people in other countries. We have not earned a profit in the global marketplace for 36 years, and we are living off our credit cards, and cash advances against the legacy value of the US Dollar, once the pillar of the world economy. And yet, we vigorously debate which of the entitlements we have conferred upon ourselves is most important, and who most deserving of it's benefits, secure in our shared delusion of perpetual prosperity.

A ship of fools if ever there was one.

[PearsonPA]

12:44 PM on 03/03/2010

I am getting tired of politicians and other individuals saying they are encouraging me to be unemployed by allowing me to use MY unemployment insurance benefits. I am a 63 year old woman that has worked for 45 years and paid taxes. My tax dollars have supported numerous government programs. Now that the two major employers have pulled out of our small Texas county, I have found myself, through no fault of my own, unemployed. Now I need assistance until I can finish re-training under the WIA program and go back into the workforce in a medical related field. My new field will allow me to remain employed and productive long after I reach retirement age. Yes, Senator Kyle, I am really enjoying my vacation from my former $30/hr job while drawing $392 a week before taxes. Think I'll drive the ten miles into town for a fun filled trip to McDonalds. I can only afford that about once a week. I'm just living too high on the hog!! By the way, my tier one extension will expire on April 4 -- one day after the newly approved extension expires. I still don't have any protection unless the long term bill is passed.

[cosmotopper777]

01:50 PM on 03/03/2010

I too have been paying taxes for my entire working life. Unfortunately, the amount of taxes I have paid falls far short of covering the benefits our politicians say I am entitled to receive. The money you and I paid in was spent decades ago, and neither you nor I cared enough to do anything about it. (Not entirely true, in 1992, I did help put Perot on the ballot in my state in an attempt to convince Congress to stop borrowing money to fund government. But we accomplished nothing in that effort.)

It's easy for people who have paid taxes to work themselves into a self-righteous fit of indignation. But you, like all of us, have quietly acquiesced while our government wasted taxdollars, and borrowed against the nation's credit to line their pockets, and those of their preferred constituencies, in both parties. Our attitude was (and is): "As long as I get mine, I don't care where it comes from."

FYI, a year ago, most came from China. Now, whenever Bernanke suspects the Treasury is out of Dollars, he creates more out of thin air. So next time you're at MacDonalds, have a BigMac on 'US'. The billions of less fortunate people in China (and elsewhere) who actually earned the money you're spending, can't do a thing about it (for now at least).

[PearsonPA]

03:13 PM on 03/03/2010

Please don't assume that we all go quietly. One of the few things the common man has left is the right to speak out. The problem is that we are basically preaching to the choir. The people in government only listen during election years, and then it is just until they get elected. After that they do as they please. The people that try to speak out get beaten down until they go dormant for a while. Then something like this situation comes along and gets everyone talking again. It does good to get mad once in a while. By the way, fifteen of my 45 years was with Electronic Data Systems. I was there when GM came in. They wanted to be lean and mean like EDS until Perot explained to them that they needed to give up their private planes and limousines. They never dreamed the budget cuts had to come from the top down. Government could do well to listen, but just like GM they didn't want to hear him either. Maybe if GM and the government had listened a little better, they wouldn't be in their current situations.

[cosmotopper777]

05:19 PM on 03/03/2010

Free-enterprise and open market competition not only works, it is the only way to harness and encourage the full potential for industry & ingenuity that each human being has to offer. Sadly, those who are gifted with entrepreneurial talents, routinely succumb to the hubris and greed which tend to follow success. Having had the benefit of opportunity, more often than not, these same people set about closing to door on others who might compete with them, and exploiting their employees by limiting their access to the spoils of success.

I believe organized labor is largely to blame for the failure of our industries and ultimately our economy, at least in the immediate sense. However, the blame for that can be laid squarely at the feet of predatory capitalists who treat discretionary capital a sacrosanct, while disregarding the value of those who are willing to give up their own opportunities in life in order to contribute as part of a corporate entity.

The simple fact is, free-enterprise must be made to work for just about everyone, not just those with extraordinary talents. If not, the critical mass of human beings who have no stake in the future will eventually cause the entire system to collapse, as it appears to be now. A sad endgame we face, given all we have accomplished as a civilization.

[cosmotopper777]

05:41 PM on 03/03/2010

I might add: as chairperson of our state's Perot campaign, I met Mr. Perot, and had a brief front-row seat in the early stages of his campaign, just before it self-destructed. He was an extraordinary person, a natural leader with amazing focus. That said, he had little patience for the process of consensus, and was (IMHO) singularly un-suited to the job of President. I ended up voting for George H. Bush that year, even though I was one of Perot's electors.

[lilie555]

12:37 PM on 03/03/2010

There is one really good way for him to find out. LAY HIM OFF. In fact, no, fire him. Cut ALL benefits except those afforded to the regular unemployed person. He'll probably feed like a leech off of his relatives but I would LOVE for someone to do a documentary on him. Follow him 24 hours a day 7 days a week(for months) to see how he survives.

Then let him issue a statement.

[CityGardner]

11:08 AM on 03/03/2010

There's only one way to test this theory.

Send Kyl an email saying he's out on his butt. Freeze his bank accounts. Take away his car. Move him to rental housing in a high-unemployment area. Have him report back to us after a year.

[dogsmell]

11:04 AM on 03/03/2010

Saying unemployment insurance is a disincentive to find work is analogous to saying health insurance is a disincentive to getting well.

"Well of course you're still sick, you got that uptown health insurance paying for this soft bed and free meals, all those fancy operations and therapies and such...I bet if you lost those benefits you would heal right up." Please.

In Nebraska you have to apply for jobs to continue to receive unemployment benefits. My wife lost her job of 12 years where she made $70k, but Nebraska caps benefits at $299 per week. We are struggling and our savings is evaporating. It is called unemployment insurance for a reason; my wife payed plenty of taxes over the years, and now a couple of cruel out-of-touch Senators are trying to block my family from getting the benefits we earned? I am sick of it and I am pissed!

[Blue2you]

10:30 AM on 03/03/2010

There REALLY ARE people who live on unemployment - I know people who seriously have NEVER once applied for a job since losing their job almost 2 years ago. Yes, they don't have a lot of money to live on but they are getting by and don't care. I know people who receive child support and unemployment and they are just fine - again, never even looking for a job. These people are abusing the benefits of unemployment - where do we write? I am sick of it. I work my but off and if I lost my job - my job would be to find a job - take a lower paying job if necessary. Again, I know people who just party and receive unemployment. It makes me sick.

[CityGardner]

11:17 AM on 03/03/2010

How about you try swapping the anecdotes about those unspecified 'folks you know' and giving us some numbers. How about you take a look at the national numbers of unemployed, those who have lost their homes, cars, medical insurance, and education benefits. Try substituting some facts for stories.

Sorry, Charlie. If what you say is true, then you personally are not out of work and what you're sick with is anger and envy. Or you're trolling just for the chance to say that every one of the twelve and a half million unemployed Americans deserves to starve.

[MighteeAphrodite]

11:46 AM on 03/03/2010

Collecting unemployment requires that you do get off the couch one in awhile, unless your couch has wheels.

"Continued Eligibility
You must file weekly or biweekly claims (after the week(s) has ended), and respond to questions concerning your continued eligibility. You must report any earnings from work you had during the week(s). You must also report any job offers or refusal of work during the week. These claims are usually filed by mail or telephone; the State will provide filing instructions. "

http://workforcesecurity.doleta.gov/unemploy/uifactsheet.asp


Also in my state, if you are unemployed YOU MUST report to a career center that closely monitors your job search. YOU MUST report to the center on an assigned date where they provide job listings or your check is withheld.


Kyl's comments are manure as usual.


Being unemployed stinks. Being Republican, stinks more.

[cosmotopper777]

02:23 PM on 03/03/2010

I'm a Republican, and I don't stink. However, most of the leaders of my party are corrupt, self-seeking individuals who exploit their positions of authority to protect their privileges, and line their pockets with payoffs for their abuse of their power.

Guess what, the same is true of the Democrats, in spades. It is particularly true of our new President, who I voted for because I believed him when he said he intended to drain the cesspool we call Washington D.C.

But it isn't going to change any time soon. Why? Because people like yourself prefer to hurl meaningless invective at talking-point villains, rather than examining the factual realities which expose the corrupt motives and actions of your own party. Shooting your mouth off in a forum like this one is quick, easy, and probably makes you feel good. Digging out the truth (which is lying in plain sight in most cases) takes a little work, so not worth your time.

[notsostimulated]

09:17 AM on 03/03/2010

Once again abuse of the system by some adversely affects the deserving. There are many hardworking unemployed Americans in need. There are also many who are milking the system because they can. Why not turn the outrage on those who abuse the system? They are stealing from everyone. Senator Bunning is forcing this nation to face it's problems. That is the only way to bring about real change.

[PlatoSunTsu]

09:38 AM on 03/03/2010

"There are also many who are milking the system because they can. " unless you can document this blase' blanket statement, it is pure prejudicial conjecture!
"Senator Bunning is forcing this nation to face it's problems"
BS, It was a bipartisan move made to highlight PayGo, he didn't have any problems financing the 2 wars we are STILL in without financing among other things. The only "problem" he forced this nation to face is the hypocrisy and greed of the party of NO.

[Blue2you]

10:52 AM on 03/03/2010

How do we "turn the people in" who are milking the system? If we could do that, then the people who really are deserving and are trying to find work would get unemployment and the milkers would not? Seriously it is ridiculous. I know people who the only thing they care about - besides partying - is unemployment benefit extensions. If you ask them about anything else going on in the world or politics they would not have a clude - but they damn well know what's going on with unemployment benefits. I have actually sent jobs and "new store opening" information to people I know on unemployment and they have never said one thing like "thanks I will go and apply"...like I said, I know people who have NEVER ONCE applied for any job since becoming unemployed...but they sure know where the party is! Why is this okay?

[MaryIndy]

11:40 AM on 03/03/2010

Where do you live? Maybe that's where we all should move, if you can live on crappy unemployment benefits. Most states, as another reader notes, require you to show you have applied for work to keep the benefits coming. And they won't be coming forever. There are plenty of unemployed people who are getting nothing anyway. You must know some losers.

[bthechangeyouseek]

08:45 AM on 03/03/2010

The hidden cost of this action extends well beyond unemployment cost and added much more to the deficit. It also depleted the trust account between the people and the GOP.

[maillady]

08:41 AM on 03/03/2010

I have never heard of anyone becoming rich due to their unemployment benefits. They are usually lower than the average living wage. Most unemployed people would jump at the chance at permanent employment. I don't think losing your job, your insurance benefits and your home qualifies as a wonderful experience. Senator Kyl is an embarrassment to himself and the entire country with his ridiculous statements. He doesn't even try to understand what is going on in real life. It's time for these one-dimensional jerks to retire, they aren't fulfilling their term of public service.

[missmanners]

08:31 AM on 03/03/2010

He should know. How long has he been on the officeholder's dole?

I think it encourages an officeholder to never look for other "work".

[PlatoSunTsu]

09:41 AM on 03/03/2010

Good Point, I mean former pro baseball players know so much about hard work and hard times right?

[bluepond]

09:58 PM on 03/02/2010

A certain level of unemployment is considered desirable to keep prices down and wages low and workers cowed. To avoid riots, a partial benefit is paid, and considered well-spent in service to the "greater" economy (read 'big biz'). All this rudeness to the unemployed is just a cover to obscure how very desirable their state is to the top 5%..