New study vindicates states that canceled expanded unemployment welfare early

FEE's Brad Polumbo writes, "Debate over the welfare state is once again making headlines. On Monday, the expanded unemployment welfare system was finally allowed to expire after more than a year. Originally created as a 'short-term' measure authorized for a few months in March 2020 then repeatedly extended, these benefits paid many of the unemployed more than their former jobs, with benefits reaching up to $25/hour in dozens of states.

Dozens of Republican-led states chose to end the benefits early. This week’s termination of enhanced benefits was in the Democrat-run states that maintained the expanded payouts, and with their lapse, the debate over whether these benefits were disincentivizing work was reignited.

New Study Vindicates States that Canceled Expanded Unemployment Welfare Early https://t.co/3ztjHH3Ey3 via @feeonline

— Brad Polumbo ??⚽️ ?️‍? (@brad_polumbo) September 8, 2021

The Wall Street Journal even published a news article, widely circulated among welfare advocates, claiming that 'states that cut off enhanced unemployment benefits early didn’t see a significant boost in job growth.' This was a bizarre spin given that the article itself notes that 'economists generally agree the enhanced benefits caused some people to stay out of the labor market' and contains several pieces of evidence suggesting they did have a significant effect. But the skewed reporting is consistent with a broad pattern in media coverage and political commentary that has attempted to downplay and deny any drawbacks of the welfare expansion."

Read the entire column here.