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.

 

 

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