It’s important that people experience the full consequences of being unemployed or they will come to love unemployment and stick with it.
A large body of economic evidence suggests that extending unemployment benefits increases unemployment and keeps people out of work longer.
This is because workers are less likely to look for work, or accept less-than-ideal jobs, as long as they are protected from the full consequences of being unemployed.
That is not to say that anyone is getting rich off unemployment, or that unemployed people are lazy. But it is simple human nature that people are a little less motivated as long as a check is coming in.
Maybe we should ask why we have unemployment insurance at all. If you can’t hold a job then you probably don’t deserve to have a home. I think it’s always your fault if you get fired, even when your entire plant closes down and moves to another country. You were getting too much compensation, obviously. If not, then why would your employer move to find cheaper labor?
