Krugman on ‘The Raleigh Experiment’

KrugmanIn case you missed it, New York Times columnist Paul Krugman takes on the talk of a Carolina comeback in his latest column. The Princeton economist, explains that the improvement in North Carolina’s jobless rate tracks with what we’re seeing at the national level. But Krugman notes the state should be concerned by the people who have dropped out of the job search and are no longer counted.  In fact, North Carolina’s labor force drop has been much larger than the national change, according to Krugman.

As for North Carolina’s move last year to cut the length and the duration of unemployment benefits, he concludes:

…if there were anything to the theory that cutting unemployment benefits encourages job search and somehow translates into higher employment even in a slump, harsh policies should work better at the state than at the national level. But there is no sign at all that North Carolina’s harshness has done anything except make the lives of the unemployed even more miserable.

Click here to read Krugman’s full column.

3 Comments

  1. LayintheSmakDown

    January 13, 2014 at 6:11 pm

    So his premise is the people who dropped out of the workforce were being paid UI, they are then dropped from getting benefits, they then stop looking for a job. Sounds like we were paying someone to look for a job….who may not have needed a job in the first place. Otherwise how can that person just suddenly quit looking? If they had no prospects during the state supported job hunt, why were they not taking the initiative to do something like train for a job that does have prospects? Unwittingly Krugman has hit on the perfect reason we should limit UI. Since we are probably supporting this person in many many other ways it is good to not have to pay at least one government perk.

  2. Alan

    January 13, 2014 at 6:39 pm

    LSD, I’m sure this Nobel prize winning economist would be challenged by your use of GOP logic. LOL…

  3. LayintheSmakDown

    January 17, 2014 at 6:02 pm

    And he would be bamboozled by your logic Alan/ML