Posts tagged with: Michigan economy

Blog author: jwitt
posted by on Tuesday, May 11, 2010

I have close friends here in Michigan who are out of work–talented, principled, hard-working people who are either unemployed or seriously underemployed. My heart breaks for them and for everyone eager to work who has been blindsided by the current recession. Unfortunately, government policies to help sometimes make the situation worse. A recent Detroit News story offers fresh evidence, evidence suggesting that Michigan’s bloated nanny state is creating perverse incentives in the labor market, incentives that are both economically and morally degrading:

In a state with the nation’s highest jobless rate, landscaping companies are finding some job applicants are rejecting work offers so they can continue collecting unemployment benefits.

Members of the Michigan Nursery and Landscape Association “have told me that they have a lot of people applying but that when they actually talk to them, it turns out that they’re on unemployment and not looking for work,” said Amy Frankmann, the group’s executive director. “It is starting to make things difficult.”

Chris Pompeo, vice president of operations for Landscape America in Warren, said he has had about a dozen offers declined. One applicant, who had eight weeks to go until his state unemployment benefits ran out, asked for a deferred start date.

“It’s like, you’ve got to be kidding me,” Pompeo said. “It’s frustrating. It’s honestly something I’ve never seen before. They say, ‘Oh, OK,’ like I surprised them by offering them a job.”

Some job applicants are asking to be paid in cash so they can collect unemployment illegally, said Gayle Younglove, vice president at Outdoor Experts Inc. in Romulus.

State benefits last for up to 26 weeks.

The unemployed can then apply for extended federal benefits that increase the total time on the public dole up to a maximum of 99 weeks.

The federal jobless benefits extension “is the most generous safety net we’ve ever offered nationally,” said David Littmann, senior economist of the Mackinac Center for Public Policy, a free-market-oriented research group in Midland. The extra protection reduces the incentive to find work, he said.

The solution isn’t to walk away from charity. The solution is to return the lion’s share of charity work to families, churches and local communities. This is charity with a human face, charity that can make important distinctions informed by local knowledge, charity that promotes human flourishing rather than dependency and dysfunction. It’s a change that will require governments to stop crowding into the sphere of private charity, and for families, churches and community organizations to prayerfully crowd back into charitable work they may have turned over to the government in decades past.

No system of charity is perfect, private or otherwise. And government-directed help has its place, such as in the case of some natural disasters. However, the evidence continues to mount that long-term, state directed charity leads to moral and economic disaster. It’s time to change.