Chuck Schumer, a senator from New York, wants to introduce a bill that will provide a “wage insurance” federal benefit. For example, if a worker earning $80,000 is laid off and can only find a job earning $60,000, half of that difference will be paid by the government.
The amount of the benefit could be limited to two years or a maximum of $10,000 per worker. According to Marketplace, even with these limits, the benefit would likely cost $4 billion.
While I’m in favor of federal benefits for workers in general, I’m not sure this program would be the best use of the money. It’s an interesting way to mitigate the *individual* risk of outsourcing and improvements in technology, but possibly encouraging education would be a better solution.
Updated December 20, 2011 and originally published March 1, 2007. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.