- Jun 13, 2009
- Reaction score
- Not here
While most discussions assume that the long time that people are unemployed shows the need for longer benefits, there is another possibility: the unprecedented benefits are the cause, not the cure, for the current long term unemployment. The more you subsidize something, the more you get of it. In this case, people only get these unemployment benefits as long as they are unemployed. It is well known that most of the unemployed wait until their benefits are about to run out before they take a job. About a third of workers receiving unemployment insurance find work right after their benefits run out. This happens whether unemployment is high or low.
FOXNews.com - The Real Reason for Our High Unemployment Numbers