Vermont’s “business leaders” scored a rare double last week. Their complaints resulted in stories published on the same day by Seven Days and VTDigger. Congratulations.
The articles trod the same well-worn path: The Usual Suspects in the business community are raising fears that proposed state unemployment benefits will hurt their efforts to attract workers. Both stories are replete with quotes from worried business owners and their paid lobbyists.
Because, as we all know, workers are inherently lazy. And the lower they are on the totem pole, the lazier they become — all the way down to the mythical creature known as the Welfare Queen.
In these stories, you won’t read any quotes from actual workers. Nor will you see anything from business groups that aren’t cut from the Chamber cloth. It’d be nice to know how Vermont Businesses for Social Responsibility and the Main Street Alliance see things before deciding whether we should consider “business leaders” as united on the moral hazard of unemployment insurance.
It’s true that many unemployed people have gotten more in Covid-enhanced UI than they could expect to earn in their line of work, and that would again be the case under S.10. I’d argue this says more about the overabundance of low-paying jobs than about the excessive generosity of pandemic benefits. And there’s plenty of research that shows that the “business leaders'” fears are unfounded; that the effect of temporarily sweetened UI on the supply of available workers is negligible at most.Continue reading