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Tuesday, May 3, 2011

"Millions Set to Lose Unemployment Benefits"

Mark Thoma of Economist's View discussing an article in the Wall Street Journal:
This is the Say's law of jobs coupled with morality -- the supply of workers somehow creates a demand for them, it's the benefits that stop people from taking them -- and it's just as false here as it is more generally. There are not enough jobs, and ending unemployment benefits won't change that. We can always find someone who abuses any system, that's true in both the public and private sectors. But the vast majority of people still receiving help are struggling against a system they have no control over. They are trying to overcome problems they didn't create, and they deserve more help from the rest of us than they are getting.

The professor brings up a number of insightful points, but this one in particular from the quote above caught my attention: how many jobs will be created by cutting off unemployment insurance benefits? Exactly none. ("There are not enough jobs, and ending unemployment benefits won't change that.")

The full article and its comments are well worth your attention.

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