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Wednesday, December 15, 2010

The economics of the good and bad of extending unemployment insurance is not clear cut.


Raju said...

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Jeffrey said...

Statistics show that people wait to the last month and a half of UI to start job hunting. UI should be 2 months maximum. OR we could just let the private market determine how important UI is to people. I suspect you might see savings rates go up a bit. Socialism doesn't work at all. How much poison do you want in your food? NONE!

You cannot boost aggregate demand by charging producers to support people who are out of work - producers costs go up, prices go up, demand eventually falls to where it was going to fall anyway (possibly further). We simply prolong the problems.