Thursday, February 28, 2013

A period of unemployment greatly increases the odds that a worker and members of the worker's
family will be counted among the nation's poor. For example, among persons between the ages of
16 and 64 who were unemployed in early 2010, nearly one in four (24.1%) were poor based on
their families' incomes in 2009; among those who were employed, 6.7% were poor.

B workers can have a collapse in resources when unemployed, for example they might have to sell assets at a fraction of their worth or become ill from it.

A variety of social insurance benefits may be available for unemployed workers. The benefits
analyzed in this report can be generically grouped into the category of Unemployment Insurance
(UI) benefits. UI benefits provide a cash supplement to replace a portion of lost wages to
qualified unemployed individuals. Two main objectives of the joint federal-state unemployment
insurance program are to provide temporary and partial wage replacement to involuntarily
unemployed workers and to stabilize the economy during recessions.

this is Bi and adds insurance to quench chaos, for example someone unemployed can hold onto their assets or sell them more slowly getting more money from them. They also have the time to retrain and look for work, unemployment can cause people to become weak from lack of food or living homeless and become less employable.The floor here then can be R poverty or nomadic life as homeless or living in a  car.

As a temporary, partial replacement of lost earnings due to job loss, the benefits workers receive
may help to prevent them and their family members from reaching poverty, an ancillary but
important role of the program. Unemployment benefits are an individual worker's entitlement (as
long as that worker meets the criteria for the benefit) and are not means tested.
 In this regard, the
UI program, while not a poverty program per se, can play an important role in reducing poverty
associated with job loss.
Additionally, as a countercyclical program UI has a macroeconomic effect in reducing poverty.
By injecting dollars into the economy directed toward those who have experienced job loss, UI
helps to partially mitigate income loss among a group directly affected by economic downturn,
and it thereby temporarily augments the ability of unemployed workers to meet basic needs,
which further stimulates the economy. In this regard, the macroeconomic effect of UI helps
dampen the tendency for poverty to increase during periods of economic downturn.

It can act as a stimulus but runs the risk of people adapting as R or B to this money, learning how to get it instead of how to find work. This is like Iv-B weeds adapting to sprinklers used in a drought so they can no longer survive with normal rainfall patterns.

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