Thankfully, in 2013, the Republican Congreress allowed EUC to expire and an analysis of EUC published by the Federal Reserve Bank of St. Louis reports the program's outcomes.
Comparing the behavior of workers whose benefits were ending in 2008 (prior to EUC's creation) with the behavior of those workers whose benefits ended in 2013, the analysis found:
- If EUC expired earlier in 2013, workers would have been 1.2% to 2.1% more likely to become reemployed.
- The long-term unemployed would have been 0.4% to 0.5% more likely to leave the labor force entirely.
- Had UI expired earlier, the likelihood of workers in EUC remaining unemployed would have decreased by 1.7% to 2.5%.
- Had EUC expired early, the unemployment rate would have been 0.03% to 0.05% lower in late 2013 than it actually was.
In the name of "compassion," the Democrat Congress in 2008 caused unemployment in the United States to grow slightly by encouraging the long-term unemployed to collect more UI rather than to seek work.
Add this to the stack of evidence that liberal economic policy just doesn't work.
Let the discussion begin...
To read the Federal Reserve Bank of St. Louis study, click on the following link:
"The Effects of Extending Unemployment Insurance Benefits."