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Ending unemployment benefits had little impact on jobs and fueled $2 billion spending cut, study finds
States that withdrew early from federal unemployment programs saw households cut spending by nearly $2 billion through early August, according to a new study.
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So it turns out- that wasn’t the issue. Spending cuts are going to ripple through as contractions in the economy. Exactly the opposite of what is economically desirable.
Well, at least some states are keeping people alive and helping.
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Federal might dry up, but some states will continue to keep the party going. NY is one of them. At some point you need to just plug your nose and jump in the water.
https://www.wsj.com/articles/states-...th-11630488601Quote:
Economists at Goldman Sachs analyzed the behavior of workers in the July jobs report after adjusting for age, gender, marital status, education, household income, industry and occupation of a respondent’s current or prior job. They said they found “clear evidence that benefit expiration increased the rate at which unemployed workers became employed.”
Goldman Sachs estimated that if all states had ended benefits, July payroll growth would have been 400,000 stronger. Economists at the firm projected the nationwide benefit cutoff this month will account for 1.5 million job gains through the end of the year.