Sane and Compassionate Unemployment Insurance..

  In the 1930s the federal government encouraged the states to partner with them to enact a national unemployment program. It consists of a payroll tax that insures laid off workers have a chance to pay at least some of their bills, and feed their families while they look for work. It has grown in the amount of money the laid off worker receives, and the duration they can receive those benefits. Naturally the payroll tax has grown also; adding to the cost of doing business.
   As is the case with all kinds of insurance, I believe the cost of  a benefit should be paid by the recipient of those benefits. The exception being if an employer voluntarily chooses to pay for insurance to attract, and maintain a quality work force. If the unemployment program is run correctly it will be in the best interest of both employee and the employer to voluntarily participate in the program. The way it is run now it is punitive towards employers and discourages initiative in the employee. How many new businesses would have been created if we had a more rational unemployment insurance program..I started 2 businesses when I was laid off from jobs I had with  large employers. I also did many odd jobs in areas were the market was being neglected..
    I realize not everyone will have the opportunity, or skills to start a business if they are laid off; but many do and the program should encourage that kind of behavior. It should also have a plan for helping those who can not find or create employment. The goal is to keep people fed and sheltered until they get on their feet again, not to provide an alternative to working and seeking employment. I have some suggestions I think could help.
   We do not need a one size fits all insurance program for unemployment, any more than we need it in insuring our homes or car..If employers and employees are given a choice in how much coverage they wanted to purchase. Employers could purchase a plan that would allow their employees to not  have to seek other employment while on temporary layoff. This would save the companies a lot of money, and effort in retraining employees. It would save the workers the cost of seeking work or retraining..If employees paid for and chose their own plan. They could set up a time frame that would allow them to return to school if laid off, or give their new business enough time to start producing income.
   Of course the federal and state governments in times of recession might have to subsidise the insurance, so not to over burden employers and working people who still have jobs..The generic approach on length of time one can receive benefits could be open ended.. If the benefits were gradually reduced after a specified time. The laid off worker would eventually qualify for food stamps and other government relief given to the poor. Those who chose not to have employment insurance would immediately be put on welfare rolls that have already been amended by the Clinton administration. Welfare reform now promotes the seeking of employment and discourages dependence..This would leave the rest of the economy free from a burden they would be overwhelmed by..
   The choice of plans voluntarily paid for by employees or employers, and a gradual reduction of benefits until you were eligible for welfare and food stamps; would encourage people to seek work and/or retrain and gain more skills..Allowing choice and promoting individual responsibility is what will fix our unemployment system..Both are compassionate, and effective elements needed to help and encourage the unemployed..