The Hill News

Supporters of extending the unemployment benefit unconvincingly argue that the extended benefit will stimulate the economy and thereby create jobs.

This macroeconomic benefit would be more convincing if unemployment benefits were not a zero-sum transfer of money from the productive sectors of the economy.

Realistically, these payments come from taxes on the employed, who must reduce their consumption to pay the taxes; or from investors who finance the increasing federal deficit rather than financing productive companies that create jobs.

Read more...