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Bob Beckel and Cal Thomas: America, back to work?



There are better ways the government can help jobless regain footing.

CAL: While Democrats boast about falling unemployment numbers and Republicans scoff because many people have quit looking for jobs, I am intrigued by events in North Carolina.

BOB: What is happening?

CAL: Last July, the state announced it would end jobless benefits after 73 weeks. A Wall Street Journal editorial noted that six months after the cutoff was announced, unemployment fell to 6.9%. It had been 8.9%. Furthermore, employment in the state has increased by 1.3% since benefits expired, while employment rose only 0.5% nationally. This proves that some people get addicted to a government check. When the gravy train stops, they quickly get off and find work.

BOB: No, for most it means having to take minimum wage jobs. Good jobs are the point. These are hard workers who lost their livable-wage jobs through no fault of their own. I would bet that many of the jobs these overqualified people got in North Carolina were flipping hamburgers or working at Walmart.

CAL: Getting by on government handouts isn't a great way to live either. Both parties have been spinning last week's Congressional Budget Office forecast for the economy's prospects between now and 2024. Republicans pounced on one point: "The reduction in CBO's projections of hours worked represents a decline in the number of full-time-equivalent workers of about 2.0 million in 2017, rising to about 2.5 million in 2024."

BOB: Let me guess. This is the fault of Obamacare right?

CAL: While not placing all the blame on the Affordable Care Act, CBO noted, "The ACA will reduce the total number of hours worked ... almost entirely because workers will choose to supply less labor — given the new taxes and other incentives they will face and the financial benefits some will receive." Working less doesn't sound like economic growth to me. But let's see if we can get past the predictable back-and-forth. I propose appealing to human nature with incentives. They would be like those ads for DirecTV. Your bill is reduced for every new customer who signs up and the new customer gets a price reduction.

BOB: How does that translate into job creation?

CAL: Offer a tax break to any business that hires someone who has been looking for work for a year or more. The employer who kept them for at least a year would get a tax break equal to the employee's salary. The employee would benefit by a job and an extra tax break as a "bonus."

BOB: So the government would eventually save money because unemployment benefits would be reduced and the individual would be making money and after six months, paying taxes instead of receiving tax money?

CAL: Right. What's not to like?

BOB: Nothing if corporate America won't scam the system. The tax break essentially provides companies with free workers. Existing employees may lose the chance to move to a better job. But it's a novel idea, Cal, and I give you credit for innovative thinking. I'll even temporarily suspend my doubts.

CAL: Faith-based institutions can play a greater role in helping people find work and acquire the necessary skills for a new job, including relocation if necessary. Most faiths instruct their followers to care for others who are in need. The government might contact these places and ask them to help, providing the names of community members who are unemployed and want to work. Since the government gives tax breaks to religious groups, shouldn't it have the right to expect something in return?

BOB: Yes it should, but I'm afraid many on my side will say that such a relationship links church and state too closely.

CAL: Not if it benefits the state. You and I have been unemployed, so we approach this issue with sympathy. When I was out of work in the '70s, unemployment benefits ceased after 26 weeks. Now with extended unemployment benefits, people stop looking for work. As North Carolina proves, giving people a deadline appeals to human nature with the threat of an empty stomach.

BOB: Unemployment insurance barely provides enough to feed and house a family. Sure, put their backs to the wall and they will take any low-paying job. Cutting unemployment benefits may lower the unemployment rate, but in many cases it steps on the American Dream.

CAL: All work can be noble and lead to promotions and higher pay. Any work beats unemployment. These days, you can't expect to hold a job in one profession your entire working life. I think my ideas might work. It beats the status quo.

BOB: Let's see if it works.


Cal Thomas is a conservative columnist. Bob Beckel is a liberal Democratic strategist. But as longtime friends, they can often find common ground on issues that lawmakers in Washington cannot.

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Posted: February 12, 2014 Wednesday 05:12 PM