Unemployment Compensation

Paper Summary:

Compulsory, government-run unemployment insurance was instituted in the United States in 1935 during the Great Depression. It was controversial at the time, but it helped pull the country up from a uniquely difficult situation. This paper examines the arguments on both sides of the issue and argues for the benefits of privatizing the program.

From the Paper:

"On the other hand, natural disasters are seldom as widespread as economic depression can sometimes be; whereas a private insurance company can go broke due to a run on claims, the government can always increase the money supply to push the economy through the bad times. But depressions of the magnitude of the one in the 1930s are few and far between. It was probably the best thing for the government to step in and do what only it could do during a time of wholesale despair, but such measures should be implemented on a temporary basis only. Long-term policies should not be based on the worst case scenario, but on the common or typical scenario to best serve the people, not just in the worst of times, but for all time."

More papers on Unemployment Compensation:

• Analytical Essay # 135848 : "Ohio Unemployment Compensation"
• Term Paper # 117730 : "Unemployment Compensation"
• Research Paper # 114421 : "Compensation and Benefits"

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