Originally posted in a LVRJ Forum
State Employment Security Division administrator Cindy Jones decided Tuesday to increase the average unemployment tax rate paid by employers by 50 percent starting in January.
Who elected this coffee drinker? We're sine die. Who called her into session?
Unemployment "insurance" is actuarially UNSOUND because the risks are correlated. That is, when a poor economy causes you to be out of work chances are it's causing a LOT of other people to lose their jobs, also. YOU CAN'T INSURE FOR THAT. It's like offering life insurance in a war zone. What's worse, our economy is overweighted in leisure activities, so we're going to be hit harder than states with more diversified economies. As if this isn't bad enough, the government puts no real limit on lifetime benefits. If you have unlimited use of the replacement vehicle you're not going to be that motivated to get your accident damage repaired.
The reason ESD has to borrow MegaMillion$ from the USG is because our fund is BANKRUPT. Again. The reason ESD is raising unemployment insurance contribution rates is because the fund is BANKRUPT. So what if higher employment taxes cause fewer jobs in the private sector. The reason the unemployment insurance fund is bankrupt is because it is statistically *impossible* to make such a system profitable. So they why do we continue to maintain such a Ponzi scheme? Because it's a good way to reward friends like Jones with high paying jobs. That is, it's a full-employment system for friends of politicians.
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