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Unemployment benefits are basically the payments that the State gives to the unemployed persons.  In most cases, these benefits are made through compulsory insurance systems. These benefits are normally given to only those who have been registered as being unemployed at the time or data intake (Callan 67).  This system has importance to someone who has lost his job or to someone who does not have any hopes of being employed again. This system makes the people who have not been employed to maintain their possessions and their homes in almost the same state as it used to be.

So many countries have embraced the need of having social benefits at the old age and young age. This was mainly to protect the unemployed from the ever changing economy. It was basically to ensure that these people remain buoyant in the market and do not become poor due to the inflation in the economy. America has been seen borrowing millions of dollars from other parties just to fund this project. This has made the government to strain so much on its available infrastructure to make ends meet (Winefield 124). It is at this point that the big question should now come to an end and the government invests the money on a different development project. In most cases, the federal government has been seen giving financial support to the government to boost this program.

The congress has extended the weeks of the program from the previous 26 weeks to 99 weeks. This has really de motivated most people from searching for jobs. The state now has to go an extra mile of finding extra money for the program. Apart from the program extending for more weeks of befits, the number of beneficiaries has rapidly increased. His has placed the state in a much precarious financial condition. This is because the state has to go and borrow extra finance to fund this program. The State cannot be able to pay all the beneficiaries on its own as the budget has really exceeded the projected budget. Various States have borrowed funds to finance the program. State like Alabama has borrowed $ 283 million from the federal government to support this program. This makes the country to increase their tax to be able to meet the requirements (McGinnity 567). This system can have an effect to an individual in that, it motivates an individual.

Most people given the finance never have the urge of searching for a new job. In case the finance from the system runs out, the individual does not have the urge of finding ways of acquiring finance. This is because; an individual had been nurtured to get money without really working for it thus expects easy money in an easy way. The system also has an effect on many businesses. If there is inflation in a country, most organizations tend to revise the income of their employees downwards. This makes most employees to give up on their work and prefer to get the unemployment benefits. This has an effect on the business as it tends to loose very qualified workers who prefer to stay without work than to be paid less money. This especially happens when the company is offering less money than what the unemployment benefits can offer. The society has a bigger effect with this issue.

When most people decide to quit their jobs for the unemployment benefit, the society stand a chance of loosing important talents. This is because, when an individual decides to sit back, he may not be in a position to put his talents in practice. In the long run the individual ends up loosing his talent and thus a loss to the society. This system has a barrier to labor movement. When a given country has enough labor, the other people will not have the initiative of moving to international markets to search for other jobs. This is basically because they are being given benefits for not being employed. This brings an imbalance in the market in that there may be other markets that may have a lot of jobs but lack labor to do the given job (Weiten 543). If the unemployment benefit could not have been present, then people would have been aggressive to move to other markets to search for a new job.

Most countries strain so much in order to achieve the budget for their unemployment benefits.  This ever increasing demand makes it very hard for the country to fit in the budget of the entire program. From the previous analysis, there are over 31 States that have at least borrowed money from the federal government. This computed to a total of $ 40 billion total money that has already been borrowed from the federal government. Alabama State for example has used over $ 283 billion from the federal government. To repay this amount, the government will be forced to increase the tax rate on the employed workers to be able to acquire this. This increased burden tends to de motivate workers in the economy and thus most of them feels like they are doing too much work but the returns are less.

Most of the working population due to de motivation, they decide to quit their jobs and settle down on the unemployment benefits. Apparently, there are over eleven States that are relying on the federal government to support them on the unemployment benefits. Michigan is a leading state that has a high debt for the federal government. This state has not been able to pay the amount and is now facing the penalties that are normally imposed by the federal government. The few cases do not mean that the unemployment benefits do not work anymore.

There are cases where the system has worked and there are states that have managed to use the process without borrowing finance from any given bodies. A good example is the Washington state. The state has been a good example that has managed this system without fail. The Washington state funds their system with a lot of money when they are in good moments. This makes them survive so well when they are at the recession stage. The other many states however do not have any success story that they can base the discussion of why the unemployment benefit system should be supported (Baumol & Blinder 143). If the congress continues to extend the benefit period of the system, then this means that the state will have to go an extra mile of borrowing finance from the federal governments.

Conclusion

In conclusion, unemployment benefits do not have more advantages as opposed to disadvantages. This has made it easier to conclude that there is no need for the unemployment benefits. This system simply worsens the situation of a state. When the states will continue to use this system, then in the near future, there will be a fiscal disaster in most states. This means that this issue needs to be addressed. If a small group of people can pay huge taxes to pay the bills accumulated in the unemployment benefit system, then there is no need for this system. All the people should pay tax equally but not to make a few people to work for the entire society.

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