Do Jobless Benefits Create More Unemployment?
Count Paul Krugman, the leftist economist who writes for the New York Times, among those who (used to) think that extended unemployment benefits creates more unemployed people.
Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker's incentive to quickly find a new job.
Here's a good debate from The Kudlow Report with Robert Reich and Dan Winslow.