America’s Economic Future Is A Disaster: Government Benefits Killing Incentives for Jobless To Find Work, The Fed Paying Banks Not to Lend, Now The Government Have To Cut Spending And Raise Taxes For Next 10 Years.
December 11th, 2012
Furchtgott-Roth: Government Killing Incentives for Jobless to Find Work
from Money News:
Government benefits have grown so generous these days that unemployed Americans lack the incentive to look for work, said Diana Furchtgott-Roth, a senior fellow at the Manhattan Institute.
The U.S. economy added a net 146,000 nonfarm payrolls in November, well above expectations for around 80,000 new jobs.
The unemployment rate fell to 7.7 percent in November from 7.9 percent in October, the lowest since December of 2008, though a shrinking labor force continues to keep the headline rate low.
“What is troubling is that as the economy gradually improves, the labor force as a percent of the population is shrinking,” she said.
“With the population aging and a smaller share of younger workers, this trend will lead to steadily higher federal and state tax burdens on the young, even if Congress reduces taxes and modifies Social Security and Medicare benefits for future retirees.”