North Carolina’s Success

Back in January, I wrote about the pitfalls of extending unemployment benefits.  Several studies have found that long periods of unemployment benefits exacerbate unemployment and reduce the incentive to find work.  A year ago, North Carolina opted not to receive federal unemployment benefits extension, and their decision paid off, as John Hood writes in the Wall Street Journal.  In the second half of 2013, their unemployment rate fell faster than the national average.  Moreover, Hood points out that since the extension of federal benefits expired in January, that nation has since benefitted as a whole; job creation and the employment-population ratio has slightly increased in 2014.  Perhaps more states should buck the trend of accepting federal funds.



Comments (3)

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  1. James M. says:

    “Perhaps more states should buck the trend of accepting federal funds.”

    Now that’s an idea! Once people stop getting handouts, they tend to get off the couch and find work, wherever it may be.

  2. Buddy says:

    “…pitfalls of extending unemployment benefits.”

    The pitfalls of extending unemployment mirrors Medicaid expansion. Whenever there are government handouts to be had, people have incentive to take them, at the expense of working.

  3. Matthew says:

    That’s the key, to look for them! But hey, if I am in a position to sit and watch infomercials all day and get income for it, I’ll take it.

    Don’t hate the player, hate the game.

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