Yesterday the Washington Times posted an editorial about President Obama’s request to extend unemployment benefits for another three months. The original extension of unemployment benefits to 99 weeks occurred in 2008, at the height of the recession. According to the Obama Administration, the recession ended in the summer of 2009. So why do people still need two years of unemployment benefits?
The editorial reminds us:
Ordinarily, this wouldn’t be an issue because such extensions have been temporary, but Mr. Obama’s economy has spawned a jobless “recovery,” and more workers continue to join the unemployment line.
Democrats see this not as an opportunity to reconsider the failure of Obamanomics, but as an excuse to spend another $25 billion. The Senate will vote this week on a three-month extension with a $6.5 billion price tag.
…There’s a negative consideration to extending unemployment subsidies time after time. A 2008 Princeton University study comes to the obvious conclusion that workers are much more aggressive in their job searches as their benefits near the end, “increasing sharply in the weeks prior to benefit exhaustion.”
Alan B. Krueger, a former chairman of Mr. Obama’s Council of Economic Advisers, was a co-author of the report. A Swedish study, finished in 2008 as well, concluded that more generous unemployment benefits increased unemployment rates. The linkage, it said, is “fairly robust.”
The year before, Sweden reformed its unemployment compensation system, such that recipients could receive up to 60 weeks of benefits, but with a catch. The longer someone is unemployed, under the new program, the less he receives in assistance.
The diminishing benefits have been a powerful inducement to look for work.
Unfortunately, extending unemployment benefits has become a political issue, which means that no one is considering whether or not it will actually help or hurt the country or the economy. Until Congress includes enough patriots who want to do what is right for the country, we can expect to have more political gamesmanship on this and other issues.