Someone close to me wrote this article a while back http://999ideas.com/social-programs.html which illustrates problems with welfare, and government interference with naturally occurring economics. It is certainly worth a read.
Many years ago, I too had experienced the joy of unemployment, and in the end felt about as worthless as possible. Because I earned so much on unemployment it cost more to get off of it, than seek real productive work. By the time my extension was over, any real feeling of self worth was destroyed .. at least for a time. I vowed it would never happen again.
Now, as a business owner, my wife and I have employees who would collect unemployment if we had to do lay-offs , or reduce our permanent workforce. We would MUCH rather provide them with the amount we give to the state of Michigan. They could use the money as they see fit, or possibly buy their own unemployment policy from private sources.
Government, and particularly our own Michigan government is incredibly wasteful, and when controlled by the bureaucratic machine which recently stole some more from us because they could not control spending, it seldom proves to be the cure. The entitlements often outstrip the ability to pay for it, and in the case of the unemployment system in Michigan and elsewhere, creates increasing need while stripping the business community of the ability to support it.