[lbo-talk] Fudging Your Unemployment

[Maria Gilmore]

Having just watched Doug's debate on The Real News with Peter Schiff, I  
wanted to comment that there's probably some truth to one claim the creepy  
Schiff made--that many people are technically cheating regarding  
unemployment by doing some kind of paid work on the side, under the table,  
etc., while they draw payments.  I'm currently drawing unemployment myself  
so I've made sure I understand how the system works.  On unemployment you  
are allowed to make a limited amount to supplement your benefit, but you  
are supposed to report it, and past a certain amount you begin to have  
money subtracted from your payments.  I personally know of at least a  
couple people drawing benefits who have made income off the books, and I  
get the sense that it's not uncommon.  I'm also aware of people who go to  
school while drawing unemployment, another no-no.  When you draw  
unemployment you are not legally entitled to benefits for any time you are  
not actively looking for and available to take a job.  When you claim your  
benefit weeks every two weeks, you are required to sign off on all these  
issues, to certify that you meet all the conditions.  You are not required  
to provide proof of any of this at the time, but you can be audited at any  
time and at that time the state will demand proof:  contacts you have  
made, phone numbers, etc.  Such an honor system set up means people are  
going to game it. On the other hand, to me, it is exquisitely cruel (on  
top of the essential barbaric nature of this whole thing) that when you  
are sick or injured you are not entitled to unemployment benefits while  
you are incapacitated:  get a good bout of the flu and by the law, you're  
just SOL.

Of course the reason people do this is not because they are inherently  
lazy and/or corrupt, they do it because the benefits paid are too small to  
support someone without losing their home, or losing their ability to  
COBRA their health insurance, or make their car payments.  Also there is  
the simple fact that when they were employed they paid taxes into this  
system and as much as the Schiffs of the world may hate it, they feel  
entitled to a little help at times when they need it; and as the Schiffs  
of the world also make plain, ain't nobody in this system going to show  
you any compassion, so you need to take care of yourself the best you can,  
and if that means fudging the facts on your claim, well, that's life in  
the good old USA.  And for the reasons I just mentioned, people are not  
eager to take new jobs that will not allow them to make their rent, etc,  
etc, so they are just not willing to take that $8.00 an hour job, no  
matter how much the Schiffs of the world think they should.

Maria

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