Thursday, July 15, 2010

Unemployment Benefits as a Stimulus

Inasmuch as unemployment benefits have become a political football and Nancy Pelosi, the House Speaker, has recently announced that "top economists" and she have declared them to be an excellent economic stimulus, I have looked into the matter more fully.

And what do you know? The Left has got it all wrong again.

When you look back at statistics done by folks such as Laffer Associates who have looked at actual data going back to 1972, Eureka!. You find that unemployment benefits do seem to keep most recipients from actively looking for work until the time benefits are ready to run out. Other studies appear to corroborate this as well.

A safety net is necessary to tide the unemployed over their bad patch. A paid vacation until they get seriously looking, is another story.

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