MARCH 5, 2010 | by NATHAN BENEFIELD

Yes, Unemployment Benefits Do Cause Higher Unemployment

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David Henderson has a post up on the Econlog blog about how unemployment benefits increase the unemployment rate.  He cites himself, the Federal Reserve, and Obama economic advisor Larry Summers.

Elizabeth Bryan touched on this economic effect in a recent CF commentary, but as the commenters note, it's just because she's cold and heartless.

Related : Economic Policy  Unions & Labor Policy  Unemployment Compensation 

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