Subsidies cause more of everything else they support. Have the laws of economics been suspended for unemployment?
With a rise in the U.S. jobless rate the unfortunate but likely reality of the move to fund unemployment benefits for another 13 months. Maybe for a few, Peter Coy counters, but it will also boost growth – a worthy tradeoff.
More jobless benefits, more unemployment.
A likely rise in the U.S. jobless rate is the unfortunate reality of the government’s move to fund extended unemployment benefits for another 13 months.
The effect probably won’t be huge, but it will be significant. And it may well hamper any recovery in investor and business confidence. A recent study by the Federal Reserve Bank of San Francisco found the unemployment rate at the end of 2009 would have …
In other words, millions of jobs are going unfilled at the same time that millions of out-of-work Americans are getting checks for being unemployed. That’s red meat for free-market conservatives who dislike government meddling in the private sector. Under the deal’s terms, wrote Erick Erickson, editor of the influential RedState blog, “we will also continue subsidizing unemploymentâ€”yes you read that right. At some point it becomes welfare, not unemployment compensation.”
Obama is making no apologies for a provision he says will be a lifeline to the families of the unemployed as well as a stimulus to the economy. “There are people right now who, when the unemployment insurance runs out, will not be able to pay the bills,” he said at a Dec. 7 news conference.
I think a better way than extending unemployment benefit is to offer unemployment loan. A loan can tie unemployed over tough time, and boost economy. A loan that needs to be paid back later would not discourage unemployed to find job.