Quote Originally Posted by thir View Post
I am not sure what is compared here: subsidies (?) versus unemployment pay?

Anyway, in DK some complained that people got too much pay in unemployment money (none of the complainers unemployed, obviously) and so, it was claimed, they would not work, because the low paid jobs they could otherwise get would lower their income if they took them.

This may be right for some, dependign on how much they got in unemployment, so the government promptly deceided to lower the pay to the lowest common denominator, the lowest paid jobs. Thus making sure that noone had enough. Personally, I think it would be more natural to raise minimum vages. A job you can live on is not too much to ask.

It belongs to the story that in DK at least (not entirely sure how it is organised in other countries) your unemployment, as well as wellfare, health services and the like is a part of the deal you have with the national tresure: you pay taxes ( a LOT of taxes) in return for help when you need it. It is a public insurance. What happens with right wing governments is that they take the money, and then do not deliver the product, or they lower the service while rasing the taxes (though not for the wealthy.). This, IMO, is theft and embezzlement.

One problem is, of course, that the money comes from two different systems: unemployment from the public and vages from private firms. The muddle between these systems is unbelieveable.
I think Lucy's comparison is between unemployment benefits and the small amount of money you get as a funded PhD student; mine, which led to hers, was between employment and welfare. Our current mixed government has announced a plan to ensure nobody will lose out by taking a job rather than staying on welfare, which should never have been the case anyway: taking a job which pays X should not lose you more than X in benefits. They've also announced a plan to stop the richest parents getting welfare payments for having kids; I found the complaints about that quite depressing - you really think I should pay taxes to be given to someone on two or three times my income as a reward for managing to have unprotected sex?!

The "right/left" divide seems to vary between countries. Here in the UK, it was the left-wing government which kept putting taxes up, particularly on the poorer working people, fuel and energy taxes in particular, as well as introducing a heavy tax on pensions. The new government, a coalition of the other left-wing party and one which used to be right-wing and seems to be all over the place now, put taxes up again, but claims to have a plan to lower them again years from now if and when the enormous budget deficit shrinks to manageable levels again. They've also increased overall spending by 9.3% over last year, amidst hyperventilation and shrieking about imaginary "cuts" even in services which have seen big funding increases. (Disturbingly, they managed to find billions of pounds to give to Ireland, billions more for Greece and hundreds of millions for both India and Pakistan...)

I'd love to see some simplification and a savings system for unemployment: rather than a big chunk of your salary being taken as extra spending money by the government, then getting money from it if you lose your job, have some of that money go into a savings account you can then draw on when unemployed. Politically easier to justify - it's your own money you're getting as unemployment income now - and people should feel safer with an actual personal safety net while they work, instead of taxes and vague promises which might be broken if it suits the politicians. Moreover, depositing extra savings would help boost bank lending (more capital to fund investments) and reduce the problems we've seen recently.