More Government Waste: More Than $3 Billion In Unemployment Fraud

0 Shares

There has been a great deal of breathless media coverage of the “devastating” impact of government spending cuts taking place due to sequestration. Meanwhile, instance upon instance of government fraud, abuse and waste—much of which could have been easily corrected to offset the impact of cuts—continue to crop up with little media ado.

One of the latest examples comes in the form of a report out from the St. Louis Federal Reserve, which points out that the Federal government paid out nearly $3.3 billion in fraudulent unemployment claims in 2011:

The unemployment insurance program in the U.S. offers benefits to workers if they lose their jobs through no fault of their own. In 2011, this program cost $108 billion, of which nearly $3.3 billion was spent on overpayments due to fraud.

…The dominant form of unemployment insurance fraud, however, is what’s called concealed earnings fraud. This fraud occurs when individuals collect unemployment benefits while they are employed and are earning wages. The overpayments due to concealed earnings accounted for almost $2.2 billion in 2011, two-thirds of the total overpayments due to all categories of fraud.

Some other examples of government waste that should make you think twice about how serious cuts to government spending really are:

Personal Liberty

Sam Rolley

Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After covering community news and politics, Rolley took a position at Personal Liberty Media Group where could better hone his focus on his true passions: national politics and liberty issues. In his daily columns and reports, Rolley works to help readers understand which lies are perpetuated by the mainstream media and to stay on top of issues ignored by more conventional media outlets.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.