Does Obama’s Math Add Up on Long-Term Unemployment Benefits?
President Obama is pushing for Congress to extend $6.4 billion worth of long-term unemployment benefits, claiming an extension is key to boosting the economy.
But do unemployment benefits really create jobs?
The administration argues that an economic “multiplier” triggered by unemployment injects $1.80 into the economy for every dollar spent on benefits for the jobless.
James Freeman of The Wall Street Journal says most economists agree that the longer someone receives unemployment benefits, the less time they will spend looking for a job.
And it may not just be bad for those looking for employment.
“What economists have found lately is that it also hurts employers, because payroll taxes pay for this, they make hiring someone more expensive and where you have more unemployment benefits, you have fewer jobs created,” Freeman said.
Watch the full segment from Fox and Friends and decide for yourself.