Collecting unemployment and trading?
- Thread starter traderx43
- Start date
Short summary of US UI
Your employer pays to a UI fund. This is akin to a premium. This is paid every time a paycheck is cut to you (subject to a cap on a yearly basis). The amount the employer pays is dependent on (just like insurance) the firing habit of that employer. If you hire & fire lots, your premium payment is high. The levy is NOT the same for all employers.
The state govt. is like a insurance company in this regard. Premium comes in, claims are paid, and hopefully they are balanced (more on it later). The UI benefit is dependent on how long you have worked (and hence paid into the system) before you became unemployed, and also on how much you made before losing job (subject to cap, of course)
Problem is, govt. understands nothing about fat-tails and chronically under charges (IMHO) for premium. In "normal" times, when there is a shortfall, states issue bonds and hike premium to pay it off. But as we know, now no normal math applies. If federal govt. sees it fit to bailout banks, they absolutely have to bailout people without a job for extended period of time. As I have noted earlier, these folks at least paid into the system. Not a freebie everyone else seems like getting.
Your employer pays to a UI fund. This is akin to a premium. This is paid every time a paycheck is cut to you (subject to a cap on a yearly basis). The amount the employer pays is dependent on (just like insurance) the firing habit of that employer. If you hire & fire lots, your premium payment is high. The levy is NOT the same for all employers.
The state govt. is like a insurance company in this regard. Premium comes in, claims are paid, and hopefully they are balanced (more on it later). The UI benefit is dependent on how long you have worked (and hence paid into the system) before you became unemployed, and also on how much you made before losing job (subject to cap, of course)
Problem is, govt. understands nothing about fat-tails and chronically under charges (IMHO) for premium. In "normal" times, when there is a shortfall, states issue bonds and hike premium to pay it off. But as we know, now no normal math applies. If federal govt. sees it fit to bailout banks, they absolutely have to bailout people without a job for extended period of time. As I have noted earlier, these folks at least paid into the system. Not a freebie everyone else seems like getting.
+1 I agree. Its insurance not entitlement. To the british guy, its just a check, not housing or insurance. People then have to pay the cobra premiums with the unemployment. Also the insurance is taxable income.
During normal and boom times the UI is overfunded, but how your state and federal congressperson and senator use that money is different problem.
Are there abuses...absolutely, but with out UI crime would explode, foreclosures increase, blah blah blah.
The main problem I see is when you have a town that is dependent on a factory and that factory closes. You have a town full of people collecting UI. There is little incentive to find a job because the factory wage was much higher then the wage they could earn with the available jobs. So to them that would be considered underemployment, but the reality is that it all they are qualified for in that area. So you have theses days of rekoning for the former employees when the UI benefits run out.
Yes you can still claim unemployment benefits even if you are trading. Because trading is an investment income and not employment income.
If you cannot show them a list of positions you have applied for it is likely that your benefits will be cut off. Any penalty depends on the state from which you are collecting benefits.
Best post in a long time!! MOoOOHAHAHA!!
