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Jan 27 2015

Expiration of Unemployment Benefits Drives Down Unemployment

The unemployment situation is improving. But you probably won’t learn the primary reason from the leftist “mainstream” media. Try The Examiner:

Sixty percent of job creation in 2014 was caused by the expiration of unemployment benefits, according to a new working paper published by the National Bureau of Economic Research.

This happy outcome was the result of the sky falling on our heads — or at least, that’s how the MSM would depict it.

In late 2013, a standoff between Republicans and Democrats led to the abrupt expiration of long-term unemployment benefits. Democrats warned that the expiration would have disastrous ramifications, but Republicans had long argued that allowing Americans to collect unemployment benefits for an indefinite period of time provided a disincentive for them to work.

Pay people not to work and many of them will not work. Only an idiot or a liar would dispute this fact.

The new working paper found that the expiration of benefits was responsible for the creation of over 1.8 million jobs. Nearly 1 million of those jobs were created by workers who would have otherwise stayed out of the labor force if unemployment benefits had been extended. …

The authors found that employment grew fastest in states that had high unemployment benefits before benefit extensions expired. This suggests that high unemployment benefits had been holding back job creation in these states, causing them to catch up quickly once benefits fell closer to those in low-benefit states.

Think what a sudden end to liberal rule could mean to states like New York and California. The standard of living would skyrocket. But demographics won’t let it happen; liberals of both parties have seen to this through immigration policy.

The labor force participation rate remains low, in part because liberal social engineers can still rely on ever more prevalent disability fraud to keep dependency up and wealth creation down (see here, here, here, and here).

labor-force-participation-rate_1975-2014
Hope & Change is shaped like a frown.

On a tip from Varla.



15 Responses to “Expiration of Unemployment Benefits Drives Down Unemployment”

  1. THOUGHTCRIMINAL2014 says:

    Dave, you really believe that there are jobs for US citizens in this country now?
    Sure if you are a transgendered, African Eskimo Hermaphrodite identifying as a homosexual midget, with a degree in racial and gender grievances and practiced in Democratic fundraising. Aside from that…. you are SOL.

  2. THOUGHTCRIMINAL2084 says:

    Dave, you really believe that there are jobs for US citizens in this country now?
    Sure if you are a transgendered, African Eskimo Hermaphrodite identifying as a homosexual midget, with a degree in racial and gender grievances and practiced in Democratic fundraising. Aside from that…. you are SOL.

  3. Jack Bauer says:

    The way unemployment is calculated in this country is ludicrous!!!

    People’s unemployment benefits run out, so they no longer apply for those benefits, and even though they don’t have a job, they’re no longer counted as unemployed. They haven’t gotten a job, but officially they’re not unemployed either. Does that make sense to anyone who isn’t a dimwitted government bureaucrat?

    It’s as though there was a plague, and all the infected people were rounded up, and placed in quarantine. Over time, these people die off little by little, and the media breathlessly brag about how the numbers of sick are decreasing because of the great job the government is doing combating the disease. Of course the number of infected people is decreasing, because they’re friggin’ DYING you numbskulls!

    The rate of inflation calculation is similarly stupid.
    “oh…we have insignificant inflation” ……proclaim the pols and their water carriers in the media. That’s because inflation is calculated only from big ticket items and not things we need all the time like energy, food, and clothing. I don’t know about you, but I don’t buy a sofa every week, so this measure of inflation that can easily be refuted by a trip to the supermarket, is as bogus as the unemployment numbers.

  4. Jack Bauer says:

    The way unemployment is calculated in this country is ludicrous!!!

    People’s unemployment benefits run out, so they no longer apply for those benefits, and even though they don’t have a job, they’re no longer counted as unemployed. They haven’t gotten a job, but officially they’re not unemployed either. Does that make sense to anyone who isn’t a dimwitted government bureaucrat?

    It’s as though there was a plague, and all the infected people were rounded up, and placed in quarantine. Over time, these people die off little by little, and the media breathlessly brag about how the numbers of sick are decreasing because of the great job the government is doing combating the disease. Of course the number of infected people is decreasing, because they’re friggin’ DYING you numbskulls!

    The rate of inflation calculation is similarly stupid.
    “oh…we have insignificant inflation” ……proclaim the pols and their water carriers in the media. That’s because inflation is calculated only from big ticket items and not things we need all the time like energy, food, and clothing. I don’t know about you, but I don’t buy a sofa every week, so this measure of inflation that can easily be refuted by a trip to the supermarket, is as bogus as the unemployment numbers.

  5. THOUGHTCRIMINAL2014 says:

    Food is a discretionary purchase, you only need it to live another day.. that is why it is not counted. With the US rates of obesity most Americans could go several months without eating and actually benefit from it. That must be the standards the bureaucrats use.

    For those of us not morbidly obese – food is not discretionary.

  6. THOUGHTCRIMINAL2084 says:

    Food is a discretionary purchase, you only need it to live another day.. that is why it is not counted. With the US rates of obesity most Americans could go several months without eating and actually benefit from it. That must be the standards the bureaucrats use.

    For those of us not morbidly obese – food is not discretionary.

  7. Jester says:

    My progressive ‘friends’ would look at that chart and say: “LOOK! LOOK! It doesn’t go down until 2002. Therefore: Bu$hitler’s Fault (TM). To which I would say (for the millionth time): “I agree. Seriously. Why? Because (repeat after me): Bush was NOT a conservative. Bush was NOT a conservative. Bush was NOT a conservative.” To which they say: “Wow! You think Bush was a LIBERAL? That tells me all I need to know about you.” And then of course I would shell out link after link after link after link as proof and examples, all to no avail from the ‘Free Thinking (TM)’ crowd. Sigh. Which is why I stopped going to progressive sites quite a while ago, and have never gone back.

  8. Jester says:

    My progressive ‘friends’ would look at that chart and say: “LOOK! LOOK! It doesn’t go down until 2002. Therefore: Bu$hitler’s Fault (TM). To which I would say (for the millionth time): “I agree. Seriously. Why? Because (repeat after me): Bush was NOT a conservative. Bush was NOT a conservative. Bush was NOT a conservative.” To which they say: “Wow! You think Bush was a LIBERAL? That tells me all I need to know about you.” And then of course I would shell out link after link after link after link as proof and examples, all to no avail from the ‘Free Thinking (TM)’ crowd. Sigh. Which is why I stopped going to progressive sites quite a while ago, and have never gone back.

  9. rwnutjob says:

    Workfare:

    Oh Hell. If Imma havta work I’ll get a real job.

  10. rwnutjob says:

    Workfare:

    Oh Hell. If Imma havta work I’ll get a real job.

  11. Appalled By The World says:

    You mean a system that rewards indolence leads to an increase in indolent people? Who would have guessed!

  12. Appalled By The World says:

    You mean a system that rewards indolence leads to an increase in indolent people? Who would have guessed!

  13. […] Yes –  Expiration of Unemployment Benefits Drives Down Unemployment […]


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