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Abby Marshall

Washington ESD unemployment benefits automatic stabilizers - how does this work?

I keep hearing economists talk about unemployment benefits being 'automatic stabilizers' for the economy. I'm currently receiving Washington ESD benefits and wondering what this actually means for me and other claimants. Does this mean our benefits automatically adjust based on economic conditions? I've been on UI for 6 weeks now and my weekly benefit amount hasn't changed, so I'm confused about what makes them 'automatic.' Anyone understand how this works with Washington ESD specifically?

Automatic stabilizers means the system kicks in automatically during recessions without Congress having to pass new laws. When more people lose jobs, more people qualify for unemployment benefits automatically. Your individual benefit amount stays the same, but the total spending on UI increases because there are more claimants. It helps boost the economy because unemployed people spend that money right away.

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Oh that makes sense! So it's not that my individual benefits change, but that the whole system expands automatically when unemployment rises?

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Exactly! Washington ESD doesn't need special approval to process more claims during a recession - the system is designed to handle increased demand automatically.

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I think there's more to it than that though. During the pandemic they did extend benefits and increase amounts, but that required special legislation. The 'automatic' part is just the basic 26 weeks of regular UI benefits that are always available.

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You're right about the pandemic extensions requiring legislation. But even the basic system has some automatic features - like the Extended Benefits program that can trigger automatically in states with high unemployment rates.

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True, I forgot about Extended Benefits. Washington state has triggered that program before during severe recessions.

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Been dealing with Washington ESD for months trying to get through to someone about my claim status. The phone system is impossible! If anyone has figured out how to actually reach a human there, please share. I've tried calling at different times but always get busy signals or get disconnected.

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I had the same problem until I found Claimyr.com - they have a service that calls Washington ESD for you and connects you when an agent picks up. There's a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Saved me hours of calling.

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Really? That sounds too good to be true. How does it work exactly?

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You just give them your callback number and they keep calling Washington ESD until they get through, then they conference you in with the agent. No more sitting on hold for hours.

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The economic theory behind automatic stabilizers is that they provide stimulus exactly when it's needed most. When unemployment rises, more people get benefits, which increases consumer spending and helps prevent the economy from falling further. It's automatic because it doesn't require political action - the system responds to economic conditions naturally.

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That's really interesting from an economic perspective. So our unemployment benefits actually help stabilize the whole economy?

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Yes! Unemployed people typically spend their benefits immediately on necessities, which keeps money circulating in the economy. It's one of the most effective forms of economic stimulus.

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wait i thought automatic meant my benefits would go up if things got worse economically?? mine have been the same $362 per week since i started claiming in january

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No, your individual benefit amount is based on your past wages and stays the same throughout your claim period. The 'automatic' part refers to the system-wide response to economic conditions.

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oh ok that makes more sense. i was wondering why my amount never changed even though everything else is getting more expensive

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The Washington ESD system is definitely an automatic stabilizer, but it's not perfect. There are still gaps in coverage and people who fall through the cracks. Gig workers, part-timers, and people with irregular employment histories often struggle to qualify for adequate benefits.

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You're absolutely right. The system helps but it's not comprehensive. That's why during major recessions, Congress often passes additional programs to fill those gaps.

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Exactly. The automatic stabilizer effect is real but limited to those who qualify for traditional UI benefits.

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This is all very theoretical but what about the practical side? I've been trying to get my adjudication resolved for weeks and can't reach anyone at Washington ESD. The 'automatic' system isn't working so automatically for me!

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For adjudication issues, you really need to speak with an agent. I mentioned Claimyr earlier - they specialize in getting people connected to Washington ESD representatives. Might be worth trying if you're stuck in adjudication limbo.

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I'm desperate enough to try anything at this point. Going to check out that video demo you mentioned.

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The automatic stabilizer concept works on a macro level but individuals still face all the usual bureaucratic challenges. Filing weekly claims, job search requirements, dealing with overpayment notices - none of that is automatic or easy.

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True, the administrative burden on individual claimants hasn't been reduced. The 'automatic' part is more about the economic function than the user experience.

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Right, so while economists see it as automatic, from a claimant's perspective it's still a complex bureaucratic process.

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Been on unemployment three times in my career and each time the benefit amount calculation seemed completely opaque. How is this 'automatic' if nobody can explain how the benefits are actually calculated?

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The calculation is based on your highest earning quarter in your base period, but Washington ESD uses a complex formula. The 'automatic' part refers to the system's response to unemployment rates, not the individual benefit calculation.

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I guess I'm conflating two different meanings of 'automatic' - the economic function versus the administrative process.

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AUTOMATIC STABILIZERS ARE A JOKE! I've been waiting 8 weeks for my claim to be processed and there's nothing automatic about it. The whole system is broken and needs to be completely overhauled!

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I understand the frustration with processing delays, but automatic stabilizers refer to the economic theory, not the administrative efficiency of Washington ESD.

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Well the theory doesn't help when you can't pay rent because the 'automatic' system takes months to process claims!

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The Extended Benefits program is a good example of automatic stabilizers in action. When Washington's unemployment rate hits certain thresholds, additional weeks of benefits become available automatically without legislative action.

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Exactly! That's a perfect example of how the system responds automatically to economic conditions. The triggers are built into the program.

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So if unemployment gets really bad in Washington, I could potentially get more than 26 weeks of benefits?

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Yes, if the Extended Benefits program triggers, you could get up to 13 additional weeks, bringing the total to 39 weeks.

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my economics professor explained it like this - when economy good fewer people need benefits so less government spending on UI. when economy bad more people need benefits so more government spending automatically. helps smooth out the business cycle

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That's a great simple explanation! The system provides more economic stimulus exactly when it's needed most, without requiring political decisions.

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yeah and unemployed people spend the money fast unlike rich people who might save tax cuts so it has immediate economic impact

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From a fiscal policy perspective, automatic stabilizers are crucial because they don't require congressional approval. During the 2008 recession, unemployment benefits provided immediate economic support while politicians were still debating stimulus packages.

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That's a key point - the automatic nature means the support kicks in immediately without political gridlock slowing things down.

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Exactly. It's counter-cyclical fiscal policy that doesn't depend on political timing or approval.

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Still confused about one thing - if it's automatic why do I have to file weekly claims and do job searches? Seems like there should be less paperwork if it's supposed to be automatic.

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The requirements for individual claimants haven't changed - you still need to certify eligibility weekly. The 'automatic' part is how the system expands to serve more people during recessions.

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Ah I see, so it's automatic from an economic policy standpoint but not from a claimant experience standpoint.

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Anyone know if Washington ESD publishes data on how much total UI spending changes during recessions? Would be interesting to see the automatic stabilizer effect in actual numbers.

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The Department of Labor publishes national data, and Washington ESD likely has state-specific data. During the 2020 recession, UI spending increased dramatically as claims surged.

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That would be a good case study of automatic stabilizers in action - the massive increase in UI spending without requiring new legislation.

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The concept makes sense but I worry about the long-term fiscal impact. If unemployment stays high for extended periods, does the 'automatic' spending become unsustainable for state budgets?

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States do face budget pressures during extended recessions, which is why there are federal programs that can provide additional funding when state UI trust funds are depleted.

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Good point about federal backstops. I guess the system has multiple layers of automatic stabilizers.

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Been trying to reach Washington ESD about my overpayment notice and getting nowhere with their phone system. This 'automatic' system sure isn't automatic when you need to resolve problems!

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Overpayment issues definitely require speaking with an agent. I keep mentioning Claimyr because they've been really helpful for getting through to Washington ESD when you have complex issues that can't be resolved online.

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At this point I'm willing to try anything. The regular phone system is completely useless.

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Thanks everyone for explaining this! I had no idea that my unemployment benefits were part of a larger economic stabilization system. Makes me feel a bit better about being on UI knowing it serves a broader economic purpose.

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That's a healthy perspective! Unemployment benefits aren't just individual assistance - they're an important part of economic policy that helps everyone by stabilizing the broader economy.

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Yeah, I learned a lot from this discussion too. The economic theory behind it is actually pretty fascinating.

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One thing I've noticed is that during recessions, not only do more people qualify for benefits, but the political pressure to extend benefits also increases. So there's an automatic policy response beyond just the built-in stabilizers.

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That's an interesting observation about the political economy aspect. High unemployment creates pressure for additional policy responses beyond the automatic stabilizers.

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Right, so you get both the automatic response and then additional legislative responses as unemployment persists.

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