The public policy blog of the American Enterprise Institute

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Discussion: (3 comments)

  1. SeattleSam

    How many times do you have to prove that the more you pay people not to work, the more people you will have not working?

    Anecdote: I know two people personally who have not taken jobs that were offered to them because UI allowed them to continue waiting for something they liked better. This might be good for them, but it’s not good for those who have to pay for this.

  2. Vic Volpe

    I agree we need to incentivize people to work. I’ve been in the workforce since 1959. There have been several times that I’ve been on unemployment compensation (including when I got discharged from the Army in 1970) and it has saved my ass a couple of times. [I’m not like Romney, where I go borrow money from friends and family — not that they would have it anyway.]

  3. It is really strange that this is even a question, just a few years ago their was almost 100% agreement from most economist that this was a fact. Paul Krugman wrote a textbook in 2009 stating this exact statement but then quickly changed opinions when he became a writer. Economist Russ Roberts ( a guest of Pethokoukis podcast) did a podcast about 6 weeks ago on this very subject and it laid out great points to show this. Also I have attached a link below about a post Roberts made on the cafe hayek blog about this subject.

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