Federal Government Spending $35 Million on Unemployment for Entrepreneurs

Forget the want-ads! The Obama administration has a new plan to give extended unemployment benefits to people who want to start new businesses. They will spend $35 million for unemployment for entrepreneurs.

The U.S. Department of Labor issued guidelines Thursday for state workforce agencies to create programs that would allow their states’ unemployed to collect unemployment insurance while starting their own businesses. The so-called Self-Employment Assistance programs will be funded by a $35 million grant, divided among all 50 states and D.C., and disbursed to individuals who qualify for unemployment compensation but wish to start their own companies rather than find a new job.

I heard someone talking about this early this morning when I was getting ready for work. I forget who it was, but he said that no politician will be able to oppose this taxpayer giveaway because doing so would be a political loser. (Note that employers also pay a price for extended unemployment, and therefore have less money to rebuild their businesses and hire people back.) Is that supposed to mean that Obama can pretty much propose any taxpayer giveaway in the name of “helping people” and Republicans will have to go along or risk losing in November? Good grief.

Hey, here’s an idea. The unemployed entrepreneurs can open food service establishments that cater to food stamp recipients. It should work well in states like New York where Governor Cuomo is working to make it easier to obtain food stamps. Talk about a welfare state.