The Keynesian claim (advanced by Krugman and Pelosi) that extending unemployment insurance is a 'win-win' stimulus omits that extending benefits reduces the incentive to take available jobs; incentive effects remain strong even in recessions and are wrongly downplayed by Keynesians.

causalpending

Speaker

John Taylor

Evidence Quote

you you hear incentives sort of downplayed by people especially in a recession that centers are downplayed and you think of these more Keynesian kinds of effects

Source

John Taylor on the State of the Economy 07/19/2010EconTalk
Created: 6/15/2026, 9:17:28 AM

My Notes

Loading notes...