President Ronald Regan once said that "unemployment insurance is a prepaid vacation for parasites," and fifty years later the government has not haven't found a better solution. Unemployment insurance does very little to stimulate the economy, even in the toughest times; In fact, studies have shown that the longer a person remains unemployed, the harder it will be for them to return to work. The problem is that it's another government program that you pay into for the rest of your life, and if you pass, you'll never have to use it. If you're having trouble doing your job, working for a struggling company (your boss is having trouble doing his job), or not saving for contingencies, don't worry, big brother has your back. Although it is not possible to completely eliminate unemployment, the government could improve the system through better reporting, shorter durations and better training incentives. Have you ever noticed that politicians never seem to agree on the magnitude of the unemployment problem? This is because there are different ways to measure unemployment, and politicians won't even agree on their relevance. The unemployment rate is calculated by the labor office through its current demographic survey (Barrow 24). They collect these statistics by surveying fifty thousand households and asking if anyone there was unemployed. This survey does not take into account that prolonged periods of unemployment discourage workers and cause them to leave the labor market due to retirement, disability, or criminal incarceration (Barrow 25). People leaving the labor market reduce the unemployment rate; however, this does not contribute to economic improvement. Why all...... middle of paper ...... …..Prime Minister. Internet. November 1, 2013. Baker, Scott R. et al. “Uncertainty and the economy”. Policy Review 175 (2012): 3-13. …..Academic Research First. Internet. November 4, 2013.Barrow, Lisa. "Is the official unemployment rate misleading? A look at the labor market…..Business cycle statistics." Economic Outlook 28 (2004): 21-35. Academic…..Research Prime. Internet. November 14, 2013. Fujita, Shigeru. “Economic Effects of Unemployment Insurance Benefits.” Business Review-......Federal Reserve Bank of Philadelphia (2010): 20-27. Premier Academic Research. Internet. 31…..Oct. 2013. Lynch, Lisa M. “Job Loss: Connecting Research and Policy Debate.” Economic…..Perspectives 29.2 (2005): 29-37. Premier Academic Research. Internet. November 4, 2013. “Ronald Reagan.” BrainyQuote.com. Xplore Inc. Web. November 14, 2013. …..http://www.brainyquote.com/quotes/quotes/r/ronaldreag400074.html