2014 Study on Employment Boom Due To Expiration Of Obama’s Unemployment Benefits

2014 Study on Employment Boom Due To Expiration Of Obama’s Unemployment Benefits

Well, no kidding. Anyone out there looking for a job will tell you that the economy stinks to high heaven. Obama’s praise of the so-called employment boom is due to *gasp* unemployment benefits expiring. Yea, not shocked. Western Journalism reports:

Barack Obama

Could the 2014 employment boom that President Obama has been taking credit for been due primarily to the expiration of long-term unemployment benefits that Obama championed?

That’s what a new paper from the National Bureau of Economic Research (NBER) says.

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The three economists involved in the study claim that ending the long-term federal unemployment benefits was the key cause of the fall in unemployment during 2014.

They write that 60 percent of the jobs created in 2014, 1.8 million in total, can be attributed to the end of the long-term unemployment benefits.

Ironically, while Obama has not shied away from taking credit for the employment boom, it is the expiration of his policy that has caused a majority of the boom, according to the NBER paper.

The Democrats wanted to renew federal unemployment benefits that last significantly longer than most state unemployment benefits, which usually last around 26 weeks.

The federal benefits were passed to provide relief during the recession. They were passed by the Senate at the end of 2013, but the House never took up a bill to extend them.

The Obama administration even predicted that the drop-off in spending from the end of the unemployment benefits would result in 240,000 jobs being lost; but in fact, according to the NBER paper, 1.8 million jobs were gained due to the expiration of the policy.

The economists found that less generous benefits stimulated more hiring and drew people into the labor force who previously had not been looking for a job.

Patrick Brennan, in National Review, contends:

The new NBER paper doesn’t find that those costs in general are much higher than economists generally assume; rather, it suggests that the benefits of reining in long-term programs can be quite substantial.

There was always good reason to think this is the case: One of the many differences between American and European labor markets is that most of the latter have unemployment benefits systems of effectively unlimited duration — and much higher levels of structural unemployment.

Obama must think the American public is as dumb as he is. No one is buying the stupid notion that the economy is ‘fixed’. Real people on the street will tell you no one is hiring. It used to be that you could get a job, anywhere, easily. We have people who have college degrees on welfare, for pete’s sake! The benefits have expired, Americans are still out of work, and the ‘numbers’ here are as inflated as Obama’s ego.

Written by Katie McGuire. Follow Katie on Twitter @GOPKatie

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McGuire

Writer, Blogger. Political aficionado. Addicted to all levels of government campaigns.

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