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Government ("gun-run") "insurance" is mostly a brain fog. It lacks the motivation to apply real actureal data to run like a real business that has to deliver more value than it consumes in the eyes of consumers (aka to be "profitable") in order to continue to exist. At the same time, it has the political incentive and the means (money printing) to give hand-outs to a targeted constituency while anonymously steal from many in order to come up with the means.
The federal FUTA tax collection does not even come close to the payouts. The gap is filled with money printing / borrowing against future taxation. The really odd part about FUTA is that the rate does not take account of likelihood of layoffs. It's as if a car insurance company that does not take into account of driving record but give everyone the same rate. It's obviously a wealth transfer scheme designed for adverse selection.
The state portion of the unemployment payout money comes in two sources:
1. forcible collection from employers who lay off. i.e. not much an insurance but simply a legal mandate that employers have to pay 6 months more than they hire a person for. In the case of GM, the employer is the taxpayer who funded the bailout.
2. chronic borrowing from the federal government. In other words, essentially looting from everyone else via money printing and future taxation.
posted by 75.67.1...
, Mon, 5 Mar 2012 03:31:21, Mon, 5 Mar 2012 10:17:52, Sun, 4 Mar 2012 08:25:13
, Tue, 6 Mar 2012 08:33:10, Mon, 5 Mar 2012 22:27:47
, Sat, 3 Mar 2012 16:06:29
, Sat, 3 Mar 2012 06:59:26, Fri, 2 Mar 2012 18:55:09, Sat, 3 Mar 2012 01:25:05, Sat, 3 Mar 2012 05:13:25, Fri, 2 Mar 2012 17:10:36, Sat, 3 Mar 2012 08:48:50, Fri, 2 Mar 2012 18:37:44, Sat, 3 Mar 2012 08:29:10, Sat, 3 Mar 2012 09:08:32
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