CAN UNEMPLOYMENT BE GOOD FOR THE ECONOMY?

posted by Michael Chihak

Former Democratic legislator and state budget director George Cunningham argues in an op-ed piece in today's Arizona Republic that extending unemployment benefits would be good for Arizona's economy.

"When the nonpartisan Congressional Budget Office evaluated components of the federal stimulus program from spending to tax cuts, it found extending unemployment benefits was the most effective instrument," Cunningham wrote, citing what he said are $3.2 million in weekly payments that are set to expire on Saturday.

Those payments would go in weekly increments to an estimated 15,000 Arizonans who have been out of work 18 months, the period covered by regular state and federal unemployment payment programs.

Republicans in control of the state Senate say they aren't interested in extending the benefits, for a range of reasons. One says people getting unemployment payments don't have an incentive to find work; others say that although the money used for the extended benefits is federal, it adds to the nation's overall debt.

Cunningham said in his op-ed piece that statistical modeling shows a near doubling of economic impact and that it would support for than 1,100 jobs in the state.