Deflating yet another fact free conservative argument:
Week With George Stephanopoulos last weekend, Sen. Rand Paul (R-Ky.)
claimed that, when it comes to unemployment, the longer you have it, "it
does provide some disincentive to work.”
According to Mark
Killingsworth, a professor of economics at Rutgers University, “in a
limited sense that’s true, but it’s not huge.”
“Most people would rather get a job than sit on unemployment benefits,” he says.
Another labor economist, Henry Farber, who teaches at Princeton University, says the evidence “is pretty clear.”
“It suggests that the extended unemployment insurance benefits that we
have had in the Great Recession and its aftermath have not appreciably
reduced the job-finding rate,” he says. Having access to those benefits,
Farber says, might extend the period of time someone is unemployed, but
just by a couple of days.
“The view that somehow, by providing
people with extended benefits," he says, "they are just living
the-fat-and happy life and don’t need to look for work and are not
finding jobs, does not seem to be borne out in any data that I have
What the benefits have done, Farber notes, is keep
out-of-work Americans from leaving the workforce altogether.
Killingsworth says what is missing from the U.S. economy right now is
demand – both for goods and services, and workers.
“If we don’t
do anything much to demand, then everybody is going to be scurrying
around looking for jobs that don’t exist,” Killingsworth says." [Source]
Labels: Conservatives, political economy