By: Mark Glennon*
Why have millions of Americans not returned to the workplace after the pandemic? How can it be that many industries complain of worker shortages even as true unemployment remains stubbornly high?
A new study suggests one partial explanation: In many states, including Illinois, the combined value of unemployment benefits and ACA (Obamacare) subsidies for a family of four with both parents not working is greater than the earned income equivalent of many jobs.
In Illinois, the combined value of those benefits is $79,199 annually, according to the study, the sixteenth highest in the nation.The study points out that the value of those Illinois benefits is higher than the average for many common jobs in Illinois, including firefighter, heavy truck driver, machinist or retail associate.
That figure includes only 50 cents for each actual of dollar the government subsidizes because, the study’s authors felt, households have repeatedly revealed that they do not like the heavily regulated ACA plans. Each $1,000 of ACA subsidy is therefore worth less than $1,000 of cash unemployment benefits.
The study does not include other safety net assistance programs beyond unemployment benefits and ACA.
It used current levels of unemployment benefits in each state, not the expanded benefits offered during the pandemic.
As the study says, the mysterious, seeming disappearance of workers probably has many causes, including perhaps continuing fears of Covid, early retirement, “long Covid,” the decision by many not to ever return to work and instead retire early, among others. The Pritzker Administration has also cited high cost of childcare as a cause. But the authors believe their study shows that “one factor contributing to the dearth of workers is the generous benefits paid to families without workers.”
The study was authored by Casey Mulligan, a Professor of Economics at the University of Chicago, who served as Chief Economist at the White House Council of Economic Advisors, and EJ Antoni, a Research Fellow for Regional Economics in The Heritage Foundation’s Center for Data Analysis. Both are Senior Fellows at the Committee to Unleash Prosperity.
*Mark Glennon is founder of Wirepoints.
A set of state lawmakers want to extend CPS’ current school closing moratorium to February 1, 2027 – the same year CPS is set to transition to a fully-elected school board. That means schools like Manley High School, with capacity for more than 1,000 students but enrollment of just 78, can’t be closed for anther three years. The school spends $45,000 per student, but just 2.4% of students read at grade level.
Hopefully, all media will get the message, in Illinois, too.
Ted joined Tom Miller of WJPF to talk about Illinois’ highest-in-the-nation property taxes, why lawmakers don’t want to touch the tax’s cost drivers, just how much Illinoisans’ tax burden has grown over the decades, why Gov. Pritzker failed to meet his promise to reform property taxes, and more.
A new way to get Illinois’ population up; simply let government dependent types to move in to collect from programs like this. There is some good news though. Union and government employees pay taxes to support this boondoggle.
Amazingly high unemployment rates?
I’ve filled out 200+ resumes in I.T. and somehow, with 20 years experience, I can’t find a job.
Maybe it’s “them” not “us.”
Thousands of.jobs available but they aren’t willing to budge on training and expertise to fill the niche positions they have open
I’m in the same boat. Current job has pretty frozen my salary, knowing no one will hire an old white guy. I’ve had one interview in last three years of trying. Company wanted to pay me same as current job. No reason to switch for that
I was in the same boat but got a position late in life in the defense sector.
One side benefit is don’t have to compete with Chinese nationals anymore!
This “study” implies that unemployment benefits are limitless. I just looked up Illinois law and the maximum number of weeks for collecting benefits is 26. So tell me how someone can essentially retire by collecting.
Extended benefits, disability and general welfare are availiable too. Why work?
To pay for the pensioner’s homes in DeSantis’ Florida.
Everyone who want reparations for slavery, you know what this means? The government supports you and now they own you. The truth is you just can’t survive unless someone owns you and supports you. Get a job, have some integrity, take care of yourself and your family, don’t rely on the rest of us to take care of you, get a job, have some pride in yourself and what you can offer this world, set a good example for your children. It’s easier to make excuses for your life than it is to change your life.
Now hiring signs everywhere, nah, I’ll stay home and collect the government cheese
hunger has been proven to be the greatest motivator
Excuse me. It’s called Obummerkare in honor of the former president who’s destroying Jackson Park with his selfie.
Talk about climate criminals! How many trees are being sacrificed to Obama’s altar?
Stupid chickens.
Democrat sewer rats want a population dependent on government welfare — so they can buy votes and rob the taxpayers with ease
You’re a terrorist. The real sewer rat is in your mirror.
Seriously — seek help — before you bite somebody.
Slavery is still the easy way.
Who in their right mind would work and pay Illinois income taxes. Your net take home pay is larger if you do not work. Government at its finest, reward non-productivity and penalize productivity. Wonder why the system is failing?
Doesn’t that explain why western Europe was so much more advanced economically than eastern Europe under the former Soviet Union? Is this what is meant by “Progressive?”
Another reason for the “labor shortage” is the aborting of 52 million babies. You’ll never hear a peep about this from the MSM though.
I don’t know, this doesn’t seem to jive with the situation on the ground. Living off unemployment benefits for six month doesn’t pay anywhere near as well as these guys think, and if you’re young and healthy, the obamacare plan has a value, sure, but they rarely use it. Most people I know on SSDI are verifiable poor, they run out of money in the last week of the month, haven’t got even a few pennies left over to do much of anything. I think, at least anecdotally, fintwit (financial twitter) is filled with all kinds of males, specifically white… Read more »
All valid points. I share your skepticism so I just wrote up what the study said.
They assigned too much value to the obamacare. I know the premiums are ‘free’ and are counted in the income calculation, but a young healthy family that takes their kids to the doctor once or twice a year for school checkups is maybe getting $1,000 in value, tops, out of the estimated $30,000 in premiums. It’s not an apples to apples comparison to compare free insurance premiums as income.
If you pay people not to work, they won’t work
Pay people to fail, and failure is guaranteed.
Did not need an article to tell me what my common sense already told me.
Key to the giant benefits gravey train is jb keeping up the never ending covid emergency orders…..
Illinois new middle class🤩🤩