Saturday, August 13, 2011

Mittens! Chilean UI Privatization Scheme

I don't expect privatizing unemployment insurance to get much traction, just Mittens! throwing Koch Bros. red meat to the Bachmann lovin' crowd in Ames. But it's worth taking a look at the consequences of the "ideas" that Romney is willing to sign onto to head up the GOP trainwreck:

A couple of quick thoughts on this. First, the whole thing is yet another way to wrest workers' safety nets away and hand them to Wall Street. Can you imagine being a worker with money in these accounts and having it subject to the whims of these markets? Please. And second, the Chilean model purports to get those "deadbeats" back to work, but there is absolutely no evidence it decreases the unemployment rate or protects workers. None. All it does is create a situation where a worker will do whatever they can with no job security or benefits simply to make ends get closer to each other even if they don't actually meet. It was started in 2002. In 2009, Chile's poverty rate rose for the very first time in 23 years. And guess what? It was attributable to joblessness and the global economic crisis. Oh, and here's some more detail on Chile and the student protests over student debt, access to education, and income disparity from yesterday. Ah, yes, the Great Conservative Experiment.

Guess that didn't work out so well for them.




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