Research Desk responds: Is unemployment insurance stimulative?

[mEDITate-OR:

insist on believing what you want to believe...

in spite of the fact that it is not true.

In this very interesting article Ezra Klein take a very good look at the economic impact of both given unemployment insurance benefits, and to extending them.

Based upon what he has learned for U.S. he makes two observations:

1.

So far, then, unemployment benefits have been very effective at stimulating the economy and reducing economic misery among affected families.

2.

Extending benefits, then, appears to be the economically smart thing to do...

So..., take (y)our/this medicine..., whether you like it or not.

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Research Desk responds: Is unemployment insurance stimulative?
http://voices.washingtonpost.com/ezra-klein/2010/07/research_desk_responds_is_unem.html
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