Sunday, January 12, 2014

Does Ending Unemployment Benefits Increase Employment?

Ever since governments provided provided benefits to the unemployed it was attacked by those who claimed that it would encourage workers to remain unemployed.  North Carolina provides a good example of what happens when the government is taken over by conservatives who share that belief.  This article shows what has happened in North Carolina after the government shut down unemployment benefits.  The labor force participation rate dropped below the national average, and the unemployment rate increased.  We can expect more of these kinds of policies at the state level as conservatives strengthen their hold on governments in most of the Red states.  Conservatives have figured out that they can accomplish things at the state level that they have difficulty accomplishing at the national level.

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