Jettison Those Musty Jobless Benefit and Union Rules | Chris Edwards | Cato Institute: Commentary

Jettison Those Musty Jobless Benefit and Union Rules | Chris Edwards | Cato Institute: Commentary: "Harvard University's Robert Barro estimated last year that recent expansions in [unemployment insurance] benefits pushed up the U.S. employment rate by about 2.7 percentage points."

"In 2002, the nation of Chile created personal UI savings accounts funded by payroll contributions. When workers lose their jobs, they draw on their UI accounts, giving them a strong incentive to find a job quickly and not deplete their funds. A detailed study of the Chilean system found that, indeed, workers using the new accounts had shorter spells of unemployment. A side benefit of Chile's system is that when workers retire, they have an additional pot of savings to enjoy."

"Collective bargaining is out of step with today's individualistic culture. The system is inconsistent with the right to freedom of association, and it effectively silences workers who disagree with union heads. Collective bargaining also creates rigid work structures in companies, which is damaging to firms competing in the dynamic global economy."