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EconoMeter: Should Congress extend unemployment benefits?

Should Congress extend Bush tax cuts and lower Social Security charges?


Sunday, December 12, 2010

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Kelly Cunningham, National University System
Answer: Yes
It would have been better for Congress to have already stimulated the economy through tax cuts, regulatory reforms, and more clarity on their future actions, thus allowing the private sector to expand more strongly to hire additional workers.
Unfortunately, at this point, extending unemployment benefits yet again is critically needed. Jobless benefits are arguably a disincentive to work as it induces or allows some to hold out for better paying jobs than those available. But at a time of high unemployment, even lower paying jobs are not accessible. More money in the pockets of workers strengthens the economy.