As the economy continues to make a down turn more and more federal workers are being laid off. However, America being the great country that it is has provided its citizens with a safe guard for those who have lost jobs. This type of security helps to put many American minds at rest. But when the number of people that get laid off exceeds a normal amout, is this security necessary? Or for another matter, affordable? This Friday, April 8 there are expected to be 2 million workers respectfully layed off from their jobs. Unemployment benefits do not simply come out of thin air, they come from the taxes other Americans have paid. When the unemployment rate rises at such a sharp incline (as demonstrated today) the demand for taxes will without a doubt increase. These workers who believed were being protected by these unemployment benefits will end up having to pay for it themselves through taxes. One must ask themselves, is laying off this many workers going to truly help this economy or simply set us back once again?
-Kinsey Budagher
Laying off workers will only help those companies (or whoever laid them off) and their marginal costs by getting rid of the extra employees that don't add to their profit. In the short term, this may benefit the economy because it forces businesses and consumers to be more efficient in their choices but in the long term these jobs will return along with some newly created ones. Nobody is able to foresee a layoff in their future, so paying these taxes to maybe one day support themselves in a time of need is a must. I don't think there is one right answer to this question, we just have to weigh the costs and benefits of each end and decide what is best.
ReplyDeleteYeah i believe that people will continue to pay their taxes, I simply worry that government is taking too drastic of steps towards fixing our economy, and in the long run will end up harming our country as a whole even more.
ReplyDeleteI agree that when companies continue to lay off workers, our economy continues to go into greater debt. The unemployment rate is rising immensely, which creates more American people that are jobless. In order to satisfy these workers wants, the government is trying to provide a security safe guard but I honestly believe this attempt at solving the problem is going to do more harm than good because the large amount of taxes that are being put into this security system. It's hard to know what to do during a crisis like this because if the government continues to use citizens taxes to pay for this safe guard for all of those who are unemployed, then our economy will never recover. But if the government does not do anything, then those people who are unemployed will become angry since they are jobless and ultimately, hopeless. I think the best solution is to encourage large companies to stop laying off individuals because it clearly does more harm than good since it just increases taxes for everyone and it makes so many people unhappy.
ReplyDeleteThanks Taryn, I think share a worry on the matter of our economy and the way government is choosing to handle it in some cases.
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