If I can't get a job, no one will. That's the flaw in your reasoning. The next issue is how people pay the bills after being laid off. Here's my story...

I'd quit my job because of neverending intimidation & harassment by my supervisor that had been going on for over a year, and was worse since 9-11. I was unemployed for 3 months living off my savings, and literally called over 500 companies looking for work before finding a job. It didn't pay much, which was very humiliating, but it would pay my bills. Upon landing the job I put my savings in a retirement savings program. After 2 weeks on the job I was hospitalized with appendicitis, underwent surgery, and was back at work in 1 week. I discovered all my work deleted off the computers (~ 200 CAD files), and then I was laid off. My employer cited poor sales. Now I ask you... Why would they hire me in the first place if they had poor sales ? In fact they seemed to be very busy with customers coming in steadily. They really needed extra help IMO. But they decided I was "dead wood" in spite of all my skills.

So now I will have to withdraw all my retirement savings, pay extra income tax on that amount, and a bank service charge too. I will have to apply for unemployment insurance. And I will have to call another 500 companies ! This is not good. I am highly skilled and I've essentially been unemployed for nearly 4 months. So your economic system is not working. Most people would not survive these circumstances on their own as I have. In fact I would describe it as dangerous. People's lives could be in jeopardy.