Once again, the NC Republicans refute the liberal lie over unemployment benefits

Discussion in 'Too Hot for Swamp Gas' started by ncbullgator, Jul 5, 2014.

  1. ncbullgator
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    ncbullgator Well-Known Member

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    http://online.wsj.com/articles/john...-it-right-on-unemployment-benefits-1404509638

    Hopefully, the link holds because it's a paid subscription story. Moderator feel free to edit if I am violating a rule here.

    A year ago, North Carolina became the first state in the nation to exit the federal government's extended-benefits program for the unemployed. Facing the prospect of job-killing hikes in payroll taxes to pay back Washington, Gov. Pat McCrory and the state legislature instead reduced the amount and duration of unemployment-insurance benefits, which had been higher in North Carolina than in most states. As a result the state lost its eligibility to participate in the extended-benefits program on July 1, 2013.

    National media and liberal activists pounced. Citing the decision and several other "outrages" by the state's first Republican-led government since Reconstruction—such as adopting a pro-growth flat tax, clearing out the state's regulatory thicket, and rejecting ObamaCare's Medicaid expansion—left-wing critics subjected the Tar Heel State to months of invective and ridicule.

    Oh, I remember the nonsense printed over North Carolina's refusal to extend benefits. Liberal poppycock from the likes of vert's hero Krugman in the NYT and the MSNBC fruitcakes.

    North Carolina didn't descend into the Dickensian nightmare critics predicted. For the last six months of 2013, it was the only state where jobless recipients weren't eligible for extended benefits. Yet during that period North Carolina had one of the nation'slargestimprovements in labor-market performance and overall economic growth.
    According to the U.S. Bureau of Labor Statistics, the number of payroll jobs in North Carolina rose by 1.5% in the second half of 2013, compared with a 0.8% rise for the nation as a whole. Total unemployment in the state dropped by 17%, compared with the national average drop of 12%. The state's official unemployment rate fell to 6.9% in December 2013 from 8.3% in June, while the nationwide rate fell by eight-tenths of a point to 6.7%.


    I doubt you will see this story printed in the left wing progressive media trash now that the truth is out.

    Left-leaning economists may still cling to their demand-side popguns and Keynesian religion. But here in the Tar Heel State, the governor and state legislature have decided to promote growth and opportunity by reducing and reforming taxes, streamlining regulation and improving public education and infrastructure. Given the state's impressive economic growth rate in 2013—4.2% in total GDP and 4.9% in private GDP, both far exceeding the national average—they are not likely to change their minds soon.
    ......
    Last edited: Jul 5, 2014
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  2. BastogneGator
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    BastogneGator Well-Known Member

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    No responses, weird....
  3. tilly
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    tilly Well-Known Member

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    I live here with you bullgator, and agree 100%.
    Truth is almost everyone I know is doing better today.

    Here in Wilmington (A CNN Money top ten fastest growing city..during the boom) New construction is everywhere, housing prices are up, and I literally dont know anyone who is unemployed. I knew a few, but they have found new jobs.
  4. OklahomaGator
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    Great news for NC!
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  5. ncbullgator
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    ncbullgator Well-Known Member

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    As usual, our resident left wingers are hiding from the truth.
  6. philobeddoe
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    philobeddoe Well-Known Member

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    Very interesting. Thanks for posting.
  7. 108
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    Is the article stating that NC's turn around was because they cut off extended unemployment benefits, or just to state that some critics were wrong about the effect?
  8. surfn1080
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    surfn1080 Well-Known Member

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    Amazing what happens when government stops feeding the hand. It would be neat if all republican states did the same to start a new normal in this country.
  9. chemgator
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    chemgator Well-Known Member

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    It is fairly obvious that it was a significant contributor to their economic turnaround. North Carolina is not the epicenter of fracking or any other new industry.

    Just admit that you (democrats) were wrong. You supported extended unemployment benefits because the economy would collapse without it. You were wrong. Take your whipping on this issue like a man.
    Last edited by a moderator: Jul 6, 2014
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  10. jimgata
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    jimgata Premium Member

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    Unemployment nationally has decreased since the government has stopped adding extensions to collect unemployment. Now a lot of them are going the disability route, unemployment numbers have decreased since the extensions have ceased.
    This just shows give it away, people will take it and stop working.
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  11. tilly
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    tilly Well-Known Member

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    They are sort of one in the same. But as a resident here, I'm just happy things are improving, and don't really care about the politics.
  12. jimgata
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    jimgata Premium Member

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    Care about the politics, politics are what caused the situation we are in, from global warming, economics. national security, poor school performance, race relations and any other issue affecting society.
    Politics have been the cause, not the solution.
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  13. 108
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    i did not read anything that was obvious that cutting off employment benefits was a causation for economic growth

    and im not going to admit sht, because i've never even heard of this NC situation until this thread
  14. ncbullgator
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    ncbullgator Well-Known Member

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    Seriously. When was the last time you read about the left wing admitting they were wrong about the economy?

    Their egos are too big for that.
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  15. tim85
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    tim85 Well-Known Member

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    I don't know if it's all that significant whether it was the actual causation for growth, I mean, it is significant - but I think for the sake of the argument, what's really important is that things didn't decline any further. Things certainly didn't get worse, that much is plainly evident, and that alone is a sign the policies aren't bad.
  16. 108
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    ok

    good for NC, but showing causation is a whole different story
  17. gatornana
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    The law has been in effect only a year......there may be negative economic effects in the long term.

    Too soon to tell......and too easy to sweep the poor and un/under employed under the rug.


    Currently, the unemployment rate in North Carolina is around 10 percent – remaining consistently higher than the national unemployment rate of 8.5 percent. The state’s unemployment rate is the fifth highest in the nation, and the $2.5 billion that North Carolina owes the federal government for loans related to unemployment benefits puts the state at fourth highest in the nation in regard to unemployment debt. The state’s Unemployment Insurance program is funded by employers who are required to make monthly payments into the system. A 0.3 percent increase in the Federal Unemployment Tax (FUTA) rates occurred in January of this year and the unpaid debt would mean a 0.3 percent federal tax increase on North Carolina businesses with each new year until the debt is paid off. The North Carolina Chamber of Commerce estimates that at this rate, employers would face an estimated $548 million FUTA tax increase by 2018 in the absence of unemployment reform in the state. Proponents of the new legislation argue that the bill is a step in the right direction toward rectifying this growing problem.

    Under the state’s current unemployment law, the maximum benefit an individual can receive is $535 per week, and is calculated using a formula set forth in the North Carolina General Statutes, which is recalculated annually. An unemployed worker can receive these state unemployment benefits for up to 26 weeks, and may qualify for a federal extension thereafter. Under the new law, however, the statutory formula is no longer used. Weekly benefits are calculated based on the individual’s average wage during the last two quarters preceding the unemployment claim and are capped at $350 per week. Further, the duration of unemployment benefits will be calculated based on the statewide unemployment rate and will range from five to 20 weeks. When the state’s unemployment rate is nine percent or greater, claimants will receive benefits for up to 20 weeks. With each 0.5 percent decrease in the state’s unemployment rate, the maximum duration will be reduced by one week, until the minimum five-week mark is hit. Additionally, the limited duration of state benefits under the new law does not meet the 26-week time period required for federal unemployment benefits to kick in. Thus, once a claimant has received state unemployment benefits for the 20-week maximum under North Carolina law, there will be no option for a federal extension.

    In addition, the health exclusion has been eliminated entirely from the new unemployment scheme. Currently, an individual may draw unemployment benefits if he or she left a job due to a health condition or other disability, or if he or she left work due to a health condition of a minor child, parent, or other immediate family member. However, if an employee draws benefits under this provision, those benefits are charged to the employer’s unemployment insurance account. Under the new law, the health exclusion has been abolished, and an individual who leaves work voluntarily due to a health reason may only avoid exclusion from unemployment benefits if he or she left work for “good cause attributable to the employer” which is defined in the new statute at N.C.G.S. § 96-14.5.

    Particularly interesting to employment lawyers and claimants alike is the elimination of “substantial fault” from the new unemployment law. Currently, “substantial fault” is a middle ground between a termination that is chargeable to the employer and misconduct by the employee, which is not chargeable to the employer. If there is a finding of substantial fault, an individual is partially disqualified from receiving unemployment benefits for a four- to 13-week waiting period, after which the claimant may receive full benefits. In cases where an employee was discharged due to “substantial fault,” the employer’s unemployment insurance account is not charged for any unemployment benefits drawn by the employee after the four- to 13-week disqualification period. In some cases, the availability of a substantial fault finding under current law allowed the employer and employee to stipulate to facts that would result in a “substantial fault” finding, and provided a way for the employee to receive unemployment benefits while allowing the employer to avoid being charged for the benefits drawn by the employee. Under the new law, such compromises will be unavailable because the possibility of a “substantial fault” has been eliminated. This change also means there will no longer be a “middle-ground” between a discharge that is due to misconduct and a discharge that does not meet this high standard. As a practical matter, this means that more employees who are discharged due to minor or intermediate violations of work rules will be eligible to draw unemployment benefits under the new law without any period of disqualification.

    While “substantial fault” has been removed from the statutory scheme, the definition of “misconduct” which prevents a discharged employee from receiving unemployment benefits has not changed. The new version of the statute lists examples of employee misconduct at N.C.G.S. § 96-14.6 that were also included in the previous statute. With the elimination of “substantial fault,” however, employers will need to ensure they adequately document instances in which employees fail to follow work rules to ensure that they can prove that an employee’s discharge meets the higher “misconduct” standard. Where employers do not have adequate documentation, and in cases involving minor infractions of work rules, under the new law, employees may be able to qualify for benefits even though the reasons for the employee’s discharge would have been classified as “substantial fault” under the current law and resulted in a partial disqualification.

    In similar fashion, avoiding liability may become even more important to employers under the new law. Under both versions of the statute, an employer’s experience rating determines the tax that will be paid by employers as unemployment insurance premiums. Generally, the employer’s experience rating is based on the number of chargeable claims against that employer, so avoiding chargeable claims was essential. Effective January 1, 2014, the tax contribution rates paid by experience rating employers each quarter will increase by 0.06 percent. Thus, even employers who pay nothing under the current law will pay a 0.06 percent tax under the new statute.

    Finally, and perhaps the piece of knowledge most important to the unemployment claimant, is the new statutory definition of “suitable work.” In order to be eligible for unemployment benefits, an individual must be able and available to work and must be actively seeking employment. The new law requires that after an individual has received unemployment benefits for 10 weeks, he or she must accept any “suitable work” or may become disqualified from receiving benefits. The new mandate defines “suitable work” as any employment offer paying at least 120 percent of a claimant’s weekly benefit amount.

    According to Republicans, the new laws provide a necessary solution to the growing problem. Governor McCrory said in an issued statement, “This bipartisan solution will protect our small businesses from continued over-taxation, ensure our citizens’ unemployment safety net is secure and financially sound for future generations, and help provide an economic climate that allows job creators to start hiring again.” Critics of the legislation claim it will further harm those who are already struggling to make ends meet, and the law may damage the state’s already shaky economic recovery by taking money out of the economic cycle that was formerly given in the form of unemployment benefits. Current U.S. Labor Secretary Seth Harris said the legislation will cause around 170,000 North Carolinians to miss out on $780 million in federal unemployment benefits and will result in a “grievous blow” to families.

    http://campbelllawobserver.com/2013...grievous-blow-or-a-path-to-economic-recovery/
  18. dangolegators
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    dangolegators Well-Known Member

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    Tennessee has had a bigger drop in unemployment over the last year than NC has. And Virginia has a considerably lower unemployment rate than NC does. Border states that are doing better than NC. Of course the WSJ article doesn't mention that.
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  19. ncbullgator
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    ncbullgator Well-Known Member

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    Nana, you were one of the biggest critics. Time to taste crow. The best way to help the poor are jobs.
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  20. gatornana
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    You may be celebrating too soon......this law put a lot of money in employers pockets which would help create an economic boost. Time will tell if it works for everyone, including the unemployed.

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