The Punishment Cure - By PAUL KRUGMAN

[kpete]

OP-ED COLUMNIST
The Punishment Cure
By PAUL KRUGMAN
Published: December 8, 2013 78 Comments


Six years have passed since the United States economy entered the Great Recession, four and a half since it officially began to recover, but long-term unemployment remains disastrously high. And Republicans have a theory about why this is happening. Their theory is, as it happens, completely wrong. But they’re sticking to it — and as a result, 1.3 million American workers, many of them in desperate financial straits, are set to lose unemployment benefits at the end of December.

Now, the G.O.P.’s desire to punish the unemployed doesn’t arise solely from bad economics; it’s part of a general pattern of afflicting the afflicted while comforting the comfortable (no to food stamps, yes to farm subsidies). But ideas do matter — as John Maynard Keynes famously wrote, they are “dangerous for good or evil.” And the case of unemployment benefits is an especially clear example of superficially plausible but wrong economic ideas being dangerous for evil.

Here’s the world as many Republicans see it: Unemployment insurance, which generally pays eligible workers between 40 and 50 percent of their previous pay, reduces the incentive to search for a new job. As a result, the story goes, workers stay unemployed longer. In particular, it’s claimed that the Emergency Unemployment Compensation program, which lets workers collect benefits beyond the usual limit of 26 weeks, explains why there are four million long-term unemployed workers in America today, up from just one million in 2007.

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So the odds, I’m sorry to say, are that the long-term unemployed will be cut off, thanks to a perfect marriage of callousness — a complete lack of empathy for the unfortunate — with bad economics. But then, hasn’t that been the story of just about everything lately?

http://www.nytimes.com/2013/12/09/opinion/krugman-the-punishment-cure.html?smid=tw-NytimesKrugman&seid=auto&_r=1&

[Electric Monk]

1. k&r

&u&g&m&a&n

[DallasNE]

2. Friday, December 13, 2013

Is the deadline for a budget deal. When that deal is announced we will pretty much know where the unemployment extension stands. My guess is that there will be a short term extension - perhaps 4-6 months. But this must be kept in the context of the overall budget agreement as there will be considerable give and take.

[BlueMTexpat]

3. "... in the context of the overall

budget agreement ... there will be considerable give and take."

There is no "give and take" with this GOP group. Period. There is only "take" and it's always from those described by Krugman as "already afflicted."

[Enthusiast]

4. K&R! This is a very significant piece. It should have hundreds of recommendations.

Krugman gets to the very heart of the issue here.

Call this thread to the attention of everyone.