Economic downturn Why unemployment insurance may not work
My friend, who is an activist and has been paying attention to policy matters over the years, asked this question - Kin Lian, what are your views about unemployment insurance. 

I replied - it has its benefits and it has its problems. On the whole, I prefer to adopt a different approach. 

He asked - what is the problem?

I replied - it is the "propensity to claim". A person who has lost a job believe that it is his or her right to receive the unemployment benefit. In some cases, it is quite clear. In many situations it creates problems in evaluating the entitlement. While this problem is not insurmountable, and many countries managed to work it work, it does create difficulties, abuse and disputes. 

He asked - how then will you deal with the problem of giving security to the workers? Right now, we are in the midst of an economic slowdown caused by the covid-19 virus.

I asked him to study my proposed solution in this video. I also show the text of my solution. 
 

Video

Text

He promised to spend some time to study it and to give his comments. During the conversation, he realized that the idea might work, but it need to be thought through.

I agree with him. Many people do not spend the time to understand another person's views. They are caught up with their own "solutions".

Tan Kin Lian
 

 

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