Does unemployment insurance stimulate the economy? This question has been debated by economists from different schools of thought for decades.
Stephen Moore’s recent Wall Street Journal opinion gave a great answer. He said:
“I have two teenage sons. One worked all summer and the other sat on his duff. To stimulate the economy, the White House wants to take more money from the son who works and give it to the one who doesn’t work. I can say with 100% certainty as a parent that in the Moore household this will lead to less work.”
You can learn more facts (and related resources) about how unemployment increases average unemployment and whether it is stimulative in my Unemployment Insurance Fact Sheet that Cascade Policy Institute released last year: http://cascadepolicy.org/news/2010/08/11/unemployment-insurance-fact-sheet/.