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Thursday, May 20, 2010

Is Obama Killing the Recovery?

You have to wonder why there's been such lackluster job growth thusfar in the US economy, despite Obama's enormous spending binge. Today, for example, inital jobless claims came in almost 10% higher than expected. Does Obama's extension of unemployment benefits have anything to do with it?

Could be. In a normal environment, if a worker lose his job, he's entitled to unemployment benefits for 13 weeks. Because of the severity of this economic downturn, Bush extended it to 26 weeks. Under Obama, it has now increased several more times, and now people can collect their benefits for up to 2 years!

Why work if the government will pay you?

Not sure if there is a connection, but to me it makes sense.