• Unemployment Insurance Doesn't Work

      James Farrell, from the Fox News Brainroom, writes:

      The New York Times has finally discovered what everyone else (including Obama economic advisor Larry Summers) has long recognized: extending the duration of unemployment benefits increases the duration of unemployment...

      A Times reporter looked at Denmark...

      "Struggling to keep its budget under control after the financial crisis, the government in June cut into its benefits system, the world’s most generous, by limiting unemployment payments to two years instead of four. Having found that recipients either get work right away or take any job as their checks run out, officials are also redoubling longstanding efforts to move Danes more quickly out of the safety net.”...

      In an accompanying piece on its Economix blog, the NYT reprinted a chart from Denmark’s Labor Market Commission which shows that extending unemployment benefits extends unemployment.

      The article contradicts the NYT's own editorials, like this one which criticized the Senate for not immediately passing an extension for unemployment benefits, saying:

      “The right thing to do is obvious. The House and Senate should immediately extend unemployment benefits.”

      TAGS
      Economy
      Unemployment