Passing The Buck On the Unemployed
Writing at Economix, Nancy Folbre argues that policymakers are trying to pass the buck regarding the unemployment crisis.
Many such voters are also drawn to a particular austerity strategy my fellow Economix blogger Casey B. Mulligan laid out last week: cutting taxes for high earners and cutting subsidies for low earners. This strategy makes perfect sense if you believe that most people who are struggling to pay their bills aren’t trying hard enough.
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This argument appeals for several reasons. It absolves believers of any responsibility for other people’s hardships. It lends credence to the assertion that the labor market would work just fine if it weren’t jammed up by a social safety net. It lays the blame for persistent unemployment squarely on President Obama, who has urged extensions of unemployment benefits and other forms of public assistance.
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And this argument holds a partial truth: some people probably do shirk, letting access to unemployment benefits, food stamps or disability insurance reduce their job search efforts.
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But the number who fall into this category is small, and so are the overall effects, especially compared with the loss of output, effort, motivation, and well-being that results when people who need a job can’t find one.