Thursday, July 14, 2011

Sen. Brown's Idea Won't Work

Maybe it is the presentation by the anonymous 527 Media blogger at the Daily Briefing; but as I understand this idea from Senator Sherrod Brown, it isn't likely to be perceived as a practical solution.

Here is the idea in a nutshell:
If the bill became law, a company could avoid layoffs by limiting the number of hours all their employees work. The unemployment insurance fund would then compensate the workers for the lower wages they received for working few hours.
...which sounds great, right? Here's the problem: In order to qualify, the company would have to pay a higher unemployment insurance rate.

No company in their right mind would increase their costs in order to prevent a fiscal disaster that would require laying people off.

Charade Brown, just another liberal Democrat who doesn't understand how business actually works in the real world. What this bill actually would do is cause prices to go up so Charade and his friends can redistribute more wealth to their union-loving friends...