Discusses the pros and cons for the privatization of unemployment insurance.
# 29698 | 2,023 words | 8 sources | MLA | 1996 |
Published on Aug 05, 2003 in Political Science (Government Agencies) , History (U.S. The 1930's - Great Depression) , Political Science (Social Security and Welfare) , Public Administration (General)
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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."
Cite this Essay:
Unemployment Compensation (2003, August 05) Retrieved April 18, 2021, from https://www.academon.com/essay/unemployment-compensation-29698/
"Unemployment Compensation" 05 August 2003. Web. 18 April. 2021. <https://www.academon.com/essay/unemployment-compensation-29698/>