Thursday, January 28, 2010

Extend Unemployment Benefits

Both the Congressional Budget Office and Mark Zandi agree that one of the best ways to improve the jobs picture is to increase and extend unemployment benefits. The question is whether capitalists are smart enough to support the system that supports them. A knee jerk reaction towards austerity will create a shock to private consumption levels and undermine demand within the economy. And the idea that people would rather stay on unemployment, when it pays 60 % of their previous wage without benefits and without retirement , is ludicrous. In many cases , it just serves to pay health benefits. Zandi is no radical, he was John Mc Cain's economic adviser during the presidential campaign.

From the CBO, via Econbrowser
1Mark Zandi - 'More Stimulus Needed'
2'Policies for Increasing Economic Growth and Employment' - Econbrowser

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